Opinion: Trump's "money giveaway" will become an inflationary boomerang, as stimulus subsidies often result in massive involuntary taxation

BlockBeats News, November 9, KobeissiLetter published a detailed market analysis regarding the "Trump $2,000 per capita tariff dividend," stating that President Trump has just announced the "tariff dividend," with each American receiving at least $2,000. It is expected that over 85% of American adults will receive this payment, with the total amount exceeding $400 billions. Meanwhile, U.S. debt is approaching $40 trillions, and the economic impact of such large-scale "stimulus" payments is enormous.

First, who will receive this payment? The most recent stimulus payment was the $1,400 stimulus check in March 2021. The full amount was only paid to: single individuals with annual income not exceeding $75,000, heads of households with annual income not exceeding $112,500, and married couples with annual income not exceeding $150,000. Applying the same standards to 2025: currently, about 220 millions American adults meet these income criteria.

Just as the 2021 stimulus checks greatly boosted consumption, however, after a one-time "stimulus," it is often followed by a prolonged period of high inflation. After the last round of stimulus measures, the U.S. inflation rate approached 10%. Stimulus payments will only add fuel to the fire, and never in U.S. history has such a large-scale stimulus plan been launched when the stock market is near historical highs. Ultimately, stimulus payments almost always turn into huge "involuntary taxes," and the American people will end up paying several times the amount of the stimulus subsidies they receive in the form of inflation.