Another day, another Donald Trump happening that’s sparked debate.
The president has made all manner of lofty promises over the past year, both prior to and since his victory in the presidential election. We’re still waiting on the release of the Epstein files, for example, while the Russia-Ukraine war continues to rage despite Trump’s assertion that he would end it before he even arrived at the Oval Office to begin his second term.
To put it mildly, one should perhaps not believe everything that Trump pledges to make true. Which is why a moment’s pause is needed before US citizens get excited about receiving a $2,000 dividend to be distributed from what Trump claimed was tariff revenue.
Naturally, that’s easier said than done. Who doesn’t want to get $2,000 in their bank account for doing nothing? Particularly when they’ve been promised it by the country’s leader.
“A dividend of at least $2000 a person (not including high income people!) will be paid to everyone,” Trump wrote on Truth Social on Sunday.
In the post in question, he neglected to elaborate on a potential timeline, exactly who would be eligible for the dividend, and who wouldn’t be eligible.
In typically bombastic fashion, Trump painted a hyperbolic picture of his tariff program, declaring it an astonishing success.
“People that are against Tariffs are FOOLS! We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price. 401k’s are Highest EVER,” Trump wrote.
“We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place.”
Perhaps predictably, doubts were cast on Trump’s plan to hand out $2000 to everyone. The Guardian delved a little deeper into the potential problems with such a huge undertaking on the government’s part, with analysts pointing out that there are two major hurdles.
The first is cost. Such a payment could cost between $300 billion and $513 billion, depending on whether children count and which adults are eligible.
Economist Erica York wrote: “If the cutoff is $100,000, 150M adults would qualify, for a cost near $300 billion. … Adjusting for that, tariffs have raised $90 billion of net revenues compared to Trump’s proposed $300 billion rebate.”
The second issue is the legal challenges associated with the tariffs themselves, which is where any and all money for dividends would com from.
Recently, the Supreme Court of the United States heard arguments in cases challenging the president’s use of emergency‐powers law to implement the tariffs. Three lower courts already ruled the approach illegal, and if the tariffs collapse in court, any planned or perceived system resulting in a payout would disappear.
To sum it up, Trump might promise unexpected, too-good-to-be-true dividends, but until he makes clear who’s eligible and when the payout might be made, and until he can categorically clarify the future of his tariff model, the whole thing seems… optimistic, shall we say.
In any case, probably a good idea that you don’t spend the $2,000 before it actually lands in your account.
Do you think Donald Trump can/will make good on his promise for sweeping dividends? Let us know in the comments.
