Trump's $5,000 dividend would reignite inflation and swell the U.S. deficit, economists say

TL;DR

President Trump proposed sending $5,000 to every U.S. adult if Republicans win the midterm elections.
Economists predict this plan would increase the federal deficit to $3 trillion and reignite inflation.
The estimated cost of $1.25 trillion far surpasses current tariff revenue, requiring government debt.
Such payments could stimulate consumer spending, mirroring the inflationary effects of pandemic stimulus checks.
Financial markets could be rattled, with investors demanding higher yields due to increased fiscal risks.
Critics call the proposal fiscally dangerous and detached from fiscal reality.
The White House defended Trump's past promises, stating he has proven doubters wrong.
Rising U.S. debt is already increasing interest costs, with government spending on debt servicing surpassing defense and Medicare.
The proposal may face challenges gaining traction with Congress, which would need to approve it.
Trump also suggested other cost-saving measures, like eliminating credit card swipe fees.

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