Let's talk about Trump finding his excuse for his tariff checks....

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Belle of the Ranch 3 min 1 speaker 5 chapters transcribed 1 month ago
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What is Trump’s proposed $2,000 tariff dividend and why does it sound appealing?

Belle of the Ranch 0:01
Well, howdy there, internet people it's Belle again. So today we're going to talk about Trump finding his excuse for his tariff checks. Trump recently promised two thousand dollar checks to Americans who aren't high income. He said this would come from tariff revenue. It didn't take long for people with basic math skills to point out there isn't enough tariff revenue to do what he's suggesting. And that it wouldn't really offset the cost of the tariffs to the consumer. And that if you pumped that much consumer cash that quickly with the current economic state, the result would be even more inflation.

Why do economists say there isn’t enough tariff revenue to fund the checks?

Belle of the Ranch 0:45
And that the very need for the checks is admitting the economy is shaky. And people would probably figure out that the money they're getting is just a fraction of the money they're having to pay in higher prices because of the very tariffs he imposed. In short, it's one of those things that sounds good, but the unforeseen consequences are actually worse for the voters he's trying to sway. But he made the announcement, so he needs to find a way to get out of it. So people don't start thinking about the doge checks they still haven't gotten. Treasury Secretary Scott Bessent broke the very shocking and surprising news that another Trump promise was falling apart when he was asked about the promised tariff dividend checks and said quote.
Belle of the Ranch 1:39
We will see.

How might the $2,000 checks affect inflation and consumer prices?

Belle of the Ranch 1:41
We need legislation for that. Simple. They'll need a new law. Of course, the fiscal hawk Republicans that were the bane of his one big beautiful bill, would have to sign on to any such law. And that wouldn't get the creative accounting that the budget reconciliation process let them have. The Committee for a Responsible Federal Budget is already slamming the cost of Trump's plan. If the Supreme Court upholds lower court rulings on the tariffs, the current revenue would be able to pay for the two thousand dollars in about seven years.

What legislative hurdles and Republican objections could block the dividend plan?

Belle of the Ranch 2:21
Even if the Supreme Court sided with Trump, the money to make the payments Trump wants would be available in early twenty twenty seven. And would pay for a check every other year. The direct statement is quote. While the president did not specify the frequency with which dividends would be paid, nor the precise amount, which He said at least two thousand a person. We estimate that $2,000 dividends would increase deficits by $6 trillion over 10 years. Assuming dividends are paid annually.

How do deficit projections compare the cost of the checks to the revenue from Trump’s tariffs?

Belle of the Ranch 2:58
This is roughly twice as much as President Trump's tariffs are estimated to raise over the same time period. It's also worth noting that Trump has already committed the funds from the tariffs. In short, Trump made the promise and he's looking to Congress as either the excuse for it not happening or the scapegoat for the trillions in new deficits. Big surprise. The self proclaimed King of Debt overextended on the tariff revenue. Anyway, it's just a thought. Y'all have a good day.

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