On November 9th, KobeissiLetter published a detailed market analysis on "Trump's $2,000 Tariff Bonus Per Person," stating that President Trump had just announced a "tariff bonus," with each American receiving at least $2,000. It is estimated that over 85% of American adults will receive this payment, with the total amount exceeding $400 billion. Meanwhile, with US debt approaching $40 trillion, the economic impact of this large-scale "stimulus" payment is enormous. [The article then refers to the act of "giving money."]
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 an annual income of no more than $75,000, households with an annual income of no more than $112,500, and married individuals with an annual income of no more than $150,000. Applying the same criteria to 2025: currently, approximately 220 million U.S. adults meet these income thresholds.
Just as the stimulus checks of 2021 greatly boosted consumption, one-off stimulus measures are often followed by a prolonged period of high inflation. After the last round of stimulus measures, the US inflation rate approached 10%. Stimulating the economy with these funds will only add fuel to the fire; never before in US history has such a large-scale stimulus plan been launched while the stock market is near record highs. Ultimately, stimulus payments almost always turn into huge "involuntary taxes," with the American people eventually paying several times the amount of stimulus subsidies received in the form of inflation.
