Trump says that a “dividend of at least $2000 a person” will be paid to all Americans except for “high-income people.”

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.

  • UnderpantsWeevil@lemmy.worldEnglish
    61·
    11 hours ago

    Remember how tariffs actually work: they are a tax on imports that businesses usually pass on to consumers

    The argument for tariffs basically boils down to profit margin. If you’re selling a $100 good into the US that cost you $15 to produce and another $5 to ship, there’s a reason to believe you’re willing to eat another $15 in import taxes to collect that $80 in profit.

    If a business can pass the cost on to the consumer, the issue isn’t strictly with the tariffs. It’s the absence of alternatives at home that can retail for under $100.

    But that’s just “business math for dummies”. Manufactured goods can cross borders multiple times in the assembling process. And with the sloppy execution of the tarrif, it seems like a single product can be taxed with each crossing. That’s a bureaucratic trainwreck for a multitude of reasons. Businesses can’t absorb these costs even with enormous margins.

    Where is the money really coming from, who defines “high income,” and how do you square higher consumer prices with a big cash payout?

    Money comes from the Treasury. High income is a statutory definition. And you don’t need to square it, because people aren’t tracking the balance.

    If he actually wants to give people $2000, put a clear, audited plan on the table.

    He’s never done that before. Why start now?