President Donald Trump and Elon Musk, who informally leads the Department of Government Efficiency, have suggested giving back to the American public.
The proposal is part of discussions aimed at reducing federal spending. According to USA TODAY, Trump indicated on Wednesday that his administration is contemplating issuing 20% of DOGE savings to citizens in the form of $5,000 stimulus checks.
“Americans deserve a ‘DOGE Dividend’: 20% of the money saved from DOGE should be returned to hardworking Americans as a tax refund check. It was their money initially,” stated James Fishback, CEO and co-founder of Azoria Partners, on X on February 14. “@Elon Musk, let’s make this happen! This is how we can restore trust in our government.”
But could this proposal be too good to be true? Here’s what we have discovered.
Can the government afford to distribute DOGE savings to citizens?
For $5,000 stimulus checks to be feasible, DOGE must first achieve its savings target of $2 trillion. In a January conversation with political strategist Mark Penn, Musk mentioned that DOGE might have a greater likelihood of cutting $1 trillion instead.
“I think we’ll aim for $2 trillion. That’s the best scenario,” he said. “However, it’s sensible to have a buffer. If we push for $2 trillion, we stand a solid chance of reaching $1 trillion.”
What does DOGE entail?
DOGE is a temporary organization set up under the U.S. DOGE Service by Elon Musk, aiming to “modernize federal technology and software to enhance government efficiency and productivity.” It is expected to conclude by July 4, 2026. Former Republican presidential candidate Vivek Ramaswamy is also involved in managing the initiative with Musk. Musk suggested that DOGE could reduce spending in the $6 trillion budget by 30%, while Ramaswamy has proposed eliminating half of all federal jobs.
Who would be eligible for a $5,000 stimulus check?
During the 2020 COVID pandemic, stimulus packages were distributed to individuals who had filed tax returns in the two preceding years or were recipients of Social Security or veterans’ benefits. The package included $1,200 for qualifying individuals and $2,400 for most married couples filing jointly, along with $500 per qualifying child under 17. Additionally, small business loans, grants, and extra weekly unemployment benefits were provided to those who qualified.
What are economists’ perspectives on the checks?
Judge Glock, the director of research at the Manhattan Institute, expresses concerns that the proposed dividend could heighten the deficit and lead to immediate consumer spending, potentially causing inflation. He advocates for the funds to be used to counterbalance the $1 trillion budget deficit and taxes. Professor Jay Zagorsky from Boston University’s Questrom School of Business shares similar concerns about inflation, suggesting that if DOGE starts distributing substantial checks to many people, it could significantly drive up inflation, especially as Trump enforces tariffs that tend to raise the cost of goods and services.
Nina Tran covers trending topics for The Greenville News. Contact her via email at [email protected].
