President Donald Trump on Sunday claimed that a “dividend of at least $2000 a person” will be paid to all Americans except for “high-income people,” saying the country is now wealthy as a result of his tariff policies.
“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 wrote.
It would be hilariously inflationary. It would give the final nudge for all the companies to drop the full tariff burden on their customers. Spending spree, everything goes up by 10% over a few months, 3 months later everyone is poorer than they were before.
Why weren’t the tariffs to raise this money deflationary?
Theoretically, the money should be staying in the economy so the supply of USD in circulation wouldn’t change. But since nobody really knows where that money is going, it’s hard to know. I’m not an expert though so I could be wrong.