James Fishback, a 30-year-old founder of an investment company, has called for $5,000 “DOGE dividend” checks to be distributed to every tax-paying American household. He asserts that the initiative will not lead to inflation because of the “very different” economic conditions compared to the past.
Newsweek reached out to Elon Musk, the head of the Department of Government Efficiency (DOGE), for comments on Thursday through emails sent to Tesla and SpaceX press offices outside regular working hours.
Why It Matters
Critics argue that Fishback’s suggested “DOGE dividend” payments could potentially trigger inflation, as they would escalate demand without a corresponding increase in supply. This would pose political challenges for Trump, who has been vocal against the Biden administration regarding inflation ahead of the 2024 presidential election.
What to Know
After being sworn in for his second presidential term on January 20, Donald Trump established DOGE, with Musk at the helm, to target what he considers excessive government expenditures. DOGE has already made significant changes, resulting in thousands of job losses throughout the federal government and plans to dismantle the United States Agency for International Development (USAID).
Fishback, reported by NBC News to be an adviser to DOGE, suggested that savings could be returned to American taxpayers through $5,000 per household “DOGE dividend” payments. In February, President Trump mentioned that the proposal was “under consideration.”
DOGE claims to have already cut $55 billion from federal government spending, although this figure has yet to be independently verified.
During the COVID-19 pandemic in 2020 and 2021, the Biden administration issued three rounds of stimulus checks to American families, arguing that it would stimulate the economy and assist families in navigating the crisis. However, opponents contended that this contributed to a surge in inflation, which reached 8.6 percent in May 2022—the highest it had been in over 40 years, according to Labor Department data.
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In an interview with Fox Business, Fishback, who also leads the investment firm Azoria, asserted that his proposed payments would not trigger inflation, citing a “very different” macroeconomic climate than when the Biden administration distributed stimulus checks during the pandemic.
He explained: “Consider the macroeconomic backdrop when those checks were issued in 2021. We faced a supply chain crisis, labor shortages, and numerous disruptions in the economy, not to mention the Federal Reserve was injecting $100 billion a month into the economy with interest rates at zero.”
“The current macroeconomic environment is quite different. Policies like ‘Drill baby drill’ are leading to lower energy costs, spending is being controlled, and deregulation is in effect. So the circumstances are fundamentally different now. Additionally, polling data indicates that 70 percent of Americans who would receive a DOGE dividend check would use it to pay off personal debt, much of which they accrued just to stay afloat during the Biden-Harris administration.”
“Thus, using a check like this to reduce debt is not inflationary; it’s actually deflationary, and I have faith in the American populace.”
Fishback made a similar point during an appearance on The Dana Show, hosted by former Breitbart editor Dana Loesch, stating: “Now look at the macro environment today, energy costs are declining, government spending is being controlled, and the economy is being deregulated—today is entirely different from what we witnessed under Biden in 2021.”
What People Are Saying
During the FII Priority Summit on February 19, Trump remarked: “There’s even under consideration a new concept where we give 20 percent of the DOGE savings to American citizens, and 20 percent goes to paying down debt.”
In response to Newsweek, Lance Roberts, chief investment strategist and economist at RIA Advisors, stated: “Increasing demand without a corresponding increase in supply leads to inflation. A tax credit would be more advantageous for the bottom 50 percent of income taxpayers who pay little or no taxes (they receive a refund) but wouldn’t generate as significant a demand surge.”
On X, responding to Fishback’s ‘DOGE dividend’ proposal, Musk commented: “check with the president,” suggesting he is receptive to the idea.
What Happens Next
While discussions about “DOGE dividend” checks for American tax-paying households are ongoing, no official announcements have been made yet, leaving it uncertain whether Trump will approve the initiative.
