In a speech to the Republican Convention in Dallas, TX on Wednesday, (9 September 2026), President Donald Trump said that he would send a $5,000 tariff dividend to every adult American if the Republicans win the upcoming midterm election in November by retaining control of the US Congress. [1] Estimates vary, but it appears that the total cost would be in the neighborhood of $1.2 trillion. [2]
Typically, reports in the press have been skeptical. Is it legal? Is he trying to buy votes? Does it require Congressional approval? What would the effect of dumping $1.2 trillion into the money supply all at once be? President Trump has made similar statements in the past that have not come to fruition, und so weiter.
In the United States, the cost of distributing consumer goods is driven by fuel prices. High prices at the gas station are driving high prices at the grocery store. Families and those who have “fixed incomes,” like the elderly and disabled, are having a difficult time making ends meet. There are a lot of people who could put $5,000 to good use.
High Deisel and gasoline prices resulting from our war with Iran are not the only thing that is contributing to the high cost of living Americans are enduring. We are still being affected by the inflationary results of two spending bills that exceeded a trillion dollars each, during the Biden Administration.
The question is, can more spending fix the problem? The answer is “yes” in the short-term and “no” in the long-term. Americans are spending more of their income on gas, food, housing, and the like. In the short-term, the $5,000 might help to replace that. In the long-term, the resulting inflation would only make things worse.
My income is “average” for the United States. [3] If I got $5,000 from the government I could pay for needed dental work that is not covered by my health insurance. I could travel, hunt, or fish some before winter. There are always more wants and needs than funds to pay for them. If I were to get the money I would bank it, and then I would spend it gradually over time on the things that are needed most. I certainly would not return it to the government.
There are things that would nag at my conscience, though. Is my vote for sale? No, I would have voted Republican anyway. What about the national debt? It is estimated to be over $40 trillion. It is not sustainable and may lead to a worldwide financial meltdown if we default. Would the money from Trump’s tariffs be better spent if it was applied to the national debt, or is the debt so hopeless that it would only be throwing the money away?
President Trump is prone to exaggerated statements and grandiose gestures. He is a born promoter, and a consummate salesman. I support most of his policies and initiatives, and I sincerely believe that he is trying to do his best for the nation and for the American people.
He is also the President of the United States. I wish he would be more circumspect with his
remarks.
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