Trump touts $5,000 dividend payout in exchange for Republican majorities
MacroGeopolitics
US President Donald Trump announced he will pay a $5,000 dividend to every adult American citizen if Republicans can hold their majorities in both the House of Representatives and the Senate in November's midterm elections. Trump announced the proposal during a primetime speech at the Republican convention in Dallas, Texas, on Wednesday, September 9, saying the US economy is strong and highly successful. However, Trump has not revealed where the money would come from to fund the policy, which would require legislative approval, at a time when US public debt has surged to $40 trillion and is putting pressure on the country's borrowing costs. Trump also said the money would come with the condition that it must be spent inside the United States, but gave no details on how that requirement would be enforced. Trump had previously floated the idea of paying dividends to consumers from tariff revenue, but that proposal has not gained much support in Congress, while this new round of direct payments to the public is also likely to face high hurdles in becoming law. The Trump Dividend proposal reflects the political pressure Trump is under ahead of the midterms, after the latest RealClearPolitics polling average showed about 39.6% of Americans approve of his job performance while 57.1% disapprove. Beyond the $5,000 payout proposal, Trump also discussed overhauling the tax system, agreements to lower prescription drug prices, and boosting energy production, and said he plans to propose making his tax cuts permanent and to reduce credit card swipe fees, in an effort to ease public concerns about the cost of living. Trump also announced he will campaign intensively in the run-up to the election, about 35 times, to help Republican candidates in competitive states, and has instructed his political action committee to direct some of its fundraising money to help candidates in tight races.
