“DOGE dividends” are being talked about by Trump and Elon Musk. People in the US with low incomes might not get the rewards.

A 30-year-old investor had the idea in a dream, and Elon Musk saw it on X. The president recently talked about it.

James Fishback said the whole idea came to him in a dream: The idea is to send reward checks to American taxpayers with any extra money that Elon Musk’s Department of Government Efficiency saves by breaking down parts of the federal government.

The idea took off on Tuesday when Fishback tweeted about it and Musk replied that he would talk to Trump about it. Fishback’s idea was pushed by the president himself from the stage at the FII Priority Summit in Miami Beach on Wednesday.

Trump told Elon, “There’s even a new idea being thought about: we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt. The numbers are crazy.”

But low-income Americans might not gain if Trump goes through with the plan as Fishback sees it.

In an interview with NBC News, Fishback, CEO of the investment firm Azoria, talked about waking up from that dream and writing a short plan with the lead researcher at his firm to send checks to millions of American households.
The episode showed how quickly Musk can help bring the president’s attention to ideas that seem random on his social media platform X, even if they come from a 30-year-old investor who isn’t very well known.

Something like a “DOGE dividend” wouldn’t be completely new to Trump; it’s similar to a plan he made during his first term during the pandemic. Then, the government sent money directly to Americans and put the president’s name on it.

“The checks should be signed by the president of the United States and should simply say “DOGE” because we need to be honest,” Fishback said. “If I’m the CEO of Azoria and I write a check every month to our employees, my name is on it.” At this point, President Trump is the legitimate leader of the country and the president of the United States. The checks should have his name on them. DOGE should also be praised, since it is the cause of these saves.

People who made less than a certain amount got checks during the pandemic, which was different.

In his plan, Fishback starts with the idea that DOGE will end up cutting the government by $2 trillion. He gives 79 million taxpaying families each $5,000, which is equal to 20% of those savings, or $400 billion. It’s important to note that the rebate would only be sent to families with net-income, which means they pay more in taxes than they get back. Americans with lower incomes would not be able to get the return. The Pew Research Center says that most Americans with an adjusted gross income of less than $40,000 don’t have to pay any federal income tax.

Fishback writes that the dividend checks would not make inflation worse because they would be paid for by dollars that have already been appropriated, unlike the stimulus checks that are paid for by the debt.

“The DOGE Dividend is different from past stimulus checks (like the American Rescue Plan in 2021) because it is only given to households that pay taxes,” he says. “Households that pay taxes are less likely to spend a transfer payment like the DOGE Dividend, so they are more likely to save it.” … It doesn’t cause inflation to pay off debt, save for emergencies, or put money away for college or retirement. In fact, paying off debt makes prices go down.

In an interview, Fishback said that the fact that the dividend would only go to families with incomes above a certain level should calm people’s worries about how the rebates might affect inflation. He also said that the checks sent during the pandemic were sent “without any discrimination.”

“A lot of low-income households got transfer payments equal to 25 to 30 percent of their annual income,” Fishback said, adding, “This only goes to households that are net-payers of federal income tax, which means that they are less likely to spend and more likely to save a transfer payment like the DOGE dividend.”

But even among Republicans, there isn’t agreement on whether to send checks to Americans with the money DOGE can save. The exact amount of the money is still unknown. On its website, the group says it has saved $55 billion so far, but some of the things it says about its work don’t hold up to the most basic checks. Sometime ago, DOGE said that they had saved $8 billion by canceling a single deal at the Department of Homeland Security. It turned out that the deal made it very clear that it was only for $8 million.

He said, “We’re cutting a hair.” “These are pretty far out there things.” The main point is… Before we talk about reward checks, DOGE still has a long way to go before we can say for sure if it saves anything and helps the economy in the long run.

House Speaker Mike Johnson, R-La., didn’t seem interested in the idea when he was asked about it at the Conservative Political Action Conference on Thursday.

“Okay, look.” In a political sense, that would be great for us. He said, “It gives everyone a check.” “But if you think about what conservatives believe in, right, being responsible with money is what we do.” That’s our brand. There is also a huge deficit and a government debt of $36 trillion that we have to deal with. Do you agree that we should pay off the credit card?

From the stage at CPAC that same day, Musk said that he had talked to Trump about the idea and that the president agreed with it. Musk said, “it sounds like… that’s something we’re going to do.” Musk is the richest person in the world and may be the most important advisor to the president.

The White House wouldn’t say anything about the plan.

This week, Fishback went to Washington, D.C., and said he had a number of good conversations about the plan with stakeholders. He wouldn’t say who those conversations were with, though. He did post a video on Thursday that showed him talking with Musk for a short time.

“Now look, people who want to criticize this plan and say that DOGE would never save $2 trillion in total, we don’t agree with them, but let’s say they’re right,” Fishback said. “Let’s say it’s only $1 trillion.” Okay, so the check goes down from $5,000 to $2,000. But let’s say it’s only $500 billion. Then the $1,250 check comes. “That is real money.”

“I have to be honest with you. “The amount of money isn’t always important,” he said. “It’s about the meaning of the government sending money back in the form of restitution to make up for the fact that their money was misused and abused by hardworking Americans, whether they live in East Baltimore or East Palestine.”

But, as Zandi pointed out, the cuts do not come without any possible economic effects.

“This isn’t like getting something for free,” he said. “So letting people go will hurt the economy.” That costs money. You need to see how all of this affects the business as a whole, and that’s just for the short term. What about in the long run? The jobs you’re cutting and the work you’re delegating are based on the idea that they are not important and that the people who work for the FAA, USAID, the FTC, and the FDA are not really contributing to anything.

“That is a pretty strong claim that these jobs are not important or helpful in the long term and are not doing things that are necessary for the economy and the country to work well,” he said. “I don’t say I know, but I don’t think anyone else does either.”

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