Reducing Debt Benefits Americans More Than DOGE ‘Dividends’
Here’s a flashy, bad notion from President Donald Trump: Distribute cash that DOGE is reclaiming from bloated government budgets to every American.
We understand the allure — who doesn’t appreciate free money? — but that’s essentially how the nation wound up in its current fiscal predicament.
And, to be fair, the president mentioned Wednesday that he’s contemplating giving voters 20% of the savings that DOGE generates, whether through tax cuts or direct payments, while allocating another 20% towards reducing the national debt.
The problem is, even if every dime retrieved by DOGE goes towards balancing the budget, it won’t significantly alleviate the federal government’s enormous $36 trillion debt burden.
Uncle Sam is currently exhausting $1 trillion annually just on interest, while the principal continues to grow.
That’s outrageous and absolutely not sustainable.
Thus, reducing the total debt will serve Americans far better than a quick cash influx.
Additionally, direct payments (or tax refunds) risk igniting renewed inflation, similar to the Bidenbucks distributions in 2021.
And a resurgence of inflation wouldn’t just nullify any gains from these payments (extra cash is less helpful if it all goes to inflated grocery prices); it would also provoke voter anger towards Trump and Republicans ahead of the 2026 midterm elections.
Merely removing Democrats from power in Washington hasn’t restored full price stability to America: The Consumer Price Index increased again in January to 3%, and bond markets are bracing for more challenges.
Washington’s overspending is what landed us in this situation, and only responsible fiscal policies can lead us out: It’s essential to begin acting sensibly with what DOGE produces.
We see the reasoning behind Trump’s “dividend” idea: The left reacts strongly to every DOGE move; sharing the savings with Joe Lunchbox might counter that narrative.
However, thus far, Democrats’ outraged reactions make them appear foolish, defending the indefensible.
DOGE’s efforts do not require the added boost from “dividends”; it’s wiser to invest every penny into overcoming the fallout of Bidenomics.