Some analysts argue that these "DOGE Dividends" could contribute to inflation. However, the economic impact of this policy differs significantly from the Biden-era stimulus measures that drove inflation to four decade highs. The post Breitbart Business Digest: DOGE Dividends Won’t Be Inflationary appeared first on Breitbart.
President Donald Trump is considering returning 20% of savings from the Department of Government Efficiency (DOGE) to taxpayers and using another 20% to reduce government debt. While some analysts worry about inflationary effects, experts argue that these "DOGE Dividends" are unlikely to cause inflation since the funds stem from cuts in excessive government spending. Steve Chiavarone of Federated Hermes notes that the pre-cut funds cannot inflate prices. Redirecting salaries into one-time payments may increase savings, and historically low unemployment reduces the risk of demand surges. Additionally, one-time payments are less likely to be spent immediately, potentially reducing inflation. Cutting wasteful programs can ease inflation by reducing excess demand, and public support for budget cuts may lead to deeper reductions, further mitigating inflationary pressures.
