Donald Trump has pledged a $5,000 "Trump dividend" for every US citizen should Republicans retain control of the US Congress in the upcoming November midterm elections. This promise, made during the Republican midterm convention in Dallas, has been met with incredulity and accusations of bribery.
The proposal is estimated to cost around $1.2 trillion in a single year, according to Marc Goldwein of the Committee for a Responsible Federal Budget. This figure is more than all three rounds of COVID relief checks combined, despite no current recession, and is expected to lead to a significant increase in the deficit and potentially the inflation rate.
Concerns over the US national debt are already high, with the debt surpassing $40 trillion for the first time in August. Chip Roy, a Republican US representative, expressed skepticism about how such a dividend would be funded, noting the substantial cost.
Democratic leaders have condemned the proposal, with California Governor Gavin Newsom calling it an attempt to "buy your vote with $5,000 in taxpayer-funded blood money." The Democratic National Committee also highlighted Trump's past unfulfilled pledges regarding similar stimulus checks.
Peter Schiff, chief economist for Euro Pacific Asset Management, stated that the pledge has already begun to affect financial markets. He noted that bond investors are reportedly selling Treasuries, pushing yields to new highs, due to the perceived recklessness of the promise.