The Financial Math Behind Trump's Tariff Plan: A Closer Look

A recent proposal by a prominent political figure involves using tariff money to send out annual checks to people. The idea is to give everyone $2, 000 each year, but not to those with high incomes. This plan is similar to the stimulus checks given during the COVID-19 pandemic. However, experts are raising concerns about the numbers. They say that sending out these checks would cost the government around $600 billion every year. On the other hand, the tariffs that this person supports have only brought in about $100 billion so far. Even in the future, these tariffs are expected to bring in only about $300 billion annually. This means that the money from tariffs would not be enough to cover the cost of the checks. In fact, it could make the country's financial problems even worse. Experts warn that if these checks are paid out every year, the national debt could reach 134% of the country's total economic output by 2035. This is a big deal because the national debt is already very high, and the government is struggling to balance its budget. The plan also has some similarities to the stimulus checks given during the pandemic. Those checks were designed to help people who were struggling financially. However, the current proposal does not have the same income limits. This could mean that the cost of the plan could be even higher than expected. In short, while the idea of sending out checks to people might sound good, the numbers just don't add up. It's important to think critically about these proposals and consider the long-term effects on the country's finances.