President Trump has proposed various plans to give Americans money, including tariff-funded rebate checks and a $1,776 "warrior dividend", in addition to record-breaking tax refund checks expected next year. Giving cash is a common move by the White House, often used during economic distress, but the US is not currently in a recession. There are two main reasons lawmakers send cash: to raise economic activity and help those in need, but this can lead to inflation outside of recessions. Economist Stan Vueger describes sending out checks as "base populism" that may not be rewarded by voters. Despite this, giving people cash can provide an economic boost, especially in downturns, according to Jared Bernstein, who chaired the Council of Economic Advisers under Biden. However, politicians may not receive credit for such distributions, and it is unclear if generosity is ultimately rewarded. The federal government is experienced in sending out money quickly, and it could be a politically smart strategy to boost the economy before the midterms. A more tailored policy, such as quarterly payments to low-and moderate-income households, might be a better fix for the current economic situation, but it may not be as attention-grabbing as a large one-time check. The president cannot implement large-scale cash distributions without Congress, and Republicans seem hesitant to support the idea. A targeted approach, like the one used in Canada, could mitigate the risk of inflation and provide more effective support to those who need it most.
axios.com
axios.com
