The prospect of receiving $2,000 in your bank account might seem appealing, but there are potential drawbacks to Donald Trump’s forthcoming plans.
President Trump revealed on November 9, that some American citizens might be eligible for a $2,000 ‘dividend’ payment.
“People that are against Tariffs are FOOLS! We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price. 401k’s are Highest EVER,” the president stated.
“We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place. A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.”
However, it appears these plans require congressional approval, according to Treasury Secretary Scott Bessent.
Although no formal agreement has been made, Trump anticipates that the checks might be distributed ‘the middle next year’, as reported by The Independent.
Financial analysts have raised concerns about the so-called ‘free money’, including Leeron Hoory, a finance journalist from BusinessHeroes.com.
“If these $2,000 tariff checks happen, I would urge people to think of them as a political dividend from a trade policy experiment rather than free money falling from the sky,” she remarked.
“The checks would be funded by higher tariffs on imports, with the White House tentatively planning for the payments to begin around mid-2026. Lawmakers opposing the proposal argue that tariff revenues would be better employed toward reducing the national debt and his team is still seeking a legislative path.”
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Hoory also pointed out that while people might receive $2,000, they would have effectively paid elsewhere beforehand.
“The key economic point to understand is that tariffs are just taxes by another name. Independent estimates of Trump’s broader tariff program on goods show that the cost of a 10 percent levy on American households would be about $1,700 annually due to price hikes for automobiles, fuel and everyday items,” she explained.
“Penn Wharton estimates that the current tariff regime could in the end cut U.S. GDP by close to 6 percent and wages by 5 percent and cost the typical middle-income household $22,000 in lost lifetime economic opportunities,” Hoory continued.
“So even if a $2,000 check were to arrive in the mail tomorrow, many struggling households would have already begun paying for it at the grocery store.”
Hoory advised caution regarding three specific concerns, emphasizing that individuals should not plan regular expenses around a single payment.
“Be dubious of anyone who claims that the math works,” Hoory also warned, adding: “And expect the usual scams as soon as a new government check is announced: Fraudsters will flood the internet with fake sign-up links and email phishing attacks.”