One thing in particular that President Donald Trump said Wednesday during the first ever midterm Republican National Convention in Dallas, Texas, captured people’s attention. He announced that he would give out $5,000 checks – but only if Republicans win both chambers of Congress in the upcoming midterm elections.
“It’s already getting blasted by Democrats who are accusing the president of essentially trying to buy votes, and there’s no doubt that that criticism is going to crescendo over the next day or so,” said ABC News’ Jim O’Brien.
ABC said that some members of the GOP are also expected to balk at the proposal. Other Republican lawmakers are gearing up to propose legislation that would allow the checks to go out, as the president can’t authorize such checks on his own, the outlet added. Previously, Sen. Josh Hawley (R-Mo.) proposed legislation for $600 rebate checks, but said those who voted for former President Joe Biden would be excluded.
Polls have shown that the economy and affordability are top issues heading towards the elections in November. With gas prices stuck at more than $4 per gallon amid the war in Iran and inflation increasing this summer, consumers are feeling financially stressed and that has been giving an edge to Democrats as Republicans hold both the House and Senate in addition to the White House.
“Eight weeks from today, millions of Americans will choose their next congressperson. Poll after poll tells us that the state of the economy will shape their choice: it’s the top issue for voters by a wide margin and most Americans are in a sour mood about it,” Fox News noted this week.
Trump’s dividend check proposal – which he likened to checks handed out by successful companies – might not be the solution to Americans’ money issues. The New York Times noted this week that Trump has promised to send money out to the electorate before, but that those payments have “yet to materialize.”
ABC also pointed out that the U.S. is in a $40 trillion deficit. Brian Bethune, an economics professor at Boston College cited by CNBC, said Trump’s dividend proposal could increase the deficit and push “the economy in the direction of a crisis.”
“It simply makes no economic sense,” Bethune said.
Americans who have been dealing with higher prices everywhere from the gas pump to grocery store aisles might be getting ready to argue with Bethune on that point. Heather Long, chief economist at Navy Federal Credit Union, acknowledged in an email to CNBC that Americans loved the checks sent out by the government when businesses were shuttered during the COVID-19 pandemic and that many would welcome a $5,000 check by the end of the year.
“But it would be a short-term gain followed by a lot of long-term pain,” Long explained. “It would exacerbate inflation and spike borrowing costs for homes, cars, credit cards, and businesses even higher.”
CNBC said that it contacted the White House “for comment on the potential inflationary effects of Trump’s proposal.”
Can he really do it?
Can he really do it?
