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Key results
- Elon Musk and Donald Trump proposed sending control to citizens on the basis of federal cuts of expenses initiated by the Task Group of the Government Department. “
- Economists and other experts have identified several main obstacles in checking out checking, starting from whether the dog will actually implement federal expenditure cuts.
- According to one of the economist, the cutting of expenses that demand by Doge and would bring small controls with the “zero effect” to the general economy.
President Donald Trump and his billionaire advisor Elon Musk proposed sending taxpayers with a total value of USD 5000 based on federal expenses, but the feasibility and potential impact of this policy are far from certainty.
The conversation about checks began to spin this week, when the social media user proposed the government sent checks to equal taxpayers 20% of the value of federal expenditure cuts Identified by the Muska government performance team. Doge was Employee fight AND Cancellation of subsidies and contracts In many federal agencies based on the president’s orders to reduce federal expenses.
Social post, which caused the discussion $ 2 trillion in expenditure cuts. Both Musk and Trump then spoke in this idea.
During the speech in Miami on Wednesday, Trump said that he was considering sharing Doge savings: “20% goes to American citizens, and 20% goes to pay off the debt,” he said.
Will the dog be able to cut enough?
Despite this, it is not clear whether stimulus checks will be sent, how much they can be worth or how quickly they can come.
Economists and other experts have identified several main obstacles in checking out checking, starting from whether the dog will actually implement federal expenditure cuts.
The Constitution gives Congress, not a White House, the right to tax and expenses, a point raised in numerous processes questioning the legality of Doge activities, including an attempt to close the American International Development Agency, and organizing foreign aid distribution.
Another potential point of sticking is the amount of money, which Doge will be able to save in his efforts to reduce federal expenditure by focusing on “prodigal expenses on federal agencies”, as reported by the mission statement.
Early Doge efforts focused on federal contracts and employees, which are a small fraction of the general federal budget. According to the website, the Agency has saved $ 55 billion so far, but independent NPR analysis has only confirmed $ 2 billion.
If 20% of this amount were sent to each adult in the USA, the checks would be about USD 41 if Doge’s Tally is accurate or USD 1.50 if countless savings do not materialize.
What influence would the checks on the economy?
By postponing the impact of expenses cuts, Doge stimulus controls can affect the economy.
If the agency reduced expenses by $ 2 trillion and issued $ 400 billion in citizens, economists from Oxford Economics estimate that this will increase economic growth and inflation, probably in the first quarter of 2026.
GDP would increase by an annual rate of 2.9%, which the quarter after stimuli control compared to the output forecast of 2.5%. Meanwhile, basic inflation would be 0.2 percentage points higher than otherwise, Bernard Yaros, led by an American economist in Oxford, wrote We -Mail Investopedia.
The White House does not agree, however, that the controls will be inflationary. At a press conference with reporters today, Director of the National Economic Council Kevin Hassett He answered the question about the impact of the check on the economy.
“If we don’t spend government money and give it to people, if they spend it all, you’re even,” he said. “But they will probably save a lot, in which case you reduce inflation.”
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