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FinanceFortune2d ago

Trump’s $5,000 ‘dividend’ is really a $1.15 trillion hole in the deficit, top economist estimates

Penn Wharton's Kent Smetters says the payout, floated at the GOP's midterm convention, could add up to $1.35 trillion to the $40 trillion national debt.

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AI SUMMARY

# Summary Penn Wharton economist Kent Smetters estimates that a proposed $5,000 dividend would cost $1.15-$1.35 trillion and significantly worsen the federal deficit, which currently sits at $40 trillion. The fiscal impact of this policy could create headwinds for bond markets and potentially push interest rates higher, pressuring equities and fixed-income securities across the board.

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Content sourced from Fortune. Not financial advice.