New Developments in U.S. Treasury: The Debt and Income Dilemma Triggered by the $2000 Check Program

robot
Abstract generation in progress

【CryptoWorld】U.S. fiscal policy takes a new turn. Trump has proposed a bold plan—distributing $2,000 checks to every American, claiming it can be implemented directly without going through Congress approval. Where does this money come from? He pointed to last year’s tariff revenue: a hefty $289 billion. It sounds substantial, but the question is—U.S. national debt has soared to an astonishing $38.6 trillion.

The logic behind this plan is straightforward: increase government revenue by raising trade barriers (i.e., tariffs), then use this revenue to both stimulate consumption through cash checks and pay down debt. It sounds promising, but sustainability is a big question mark. On one hand, whether tariffs can maintain such high revenue levels remains uncertain; on the other hand, a debt scale of $38.6 trillion means that even an annual revenue of $289 billion is just a drop in the bucket.

From a macroeconomic perspective, such fiscal expansion policies tend to push up inflation expectations, thereby affecting asset allocation. Whether in traditional finance or crypto markets, major policy shifts like this warrant close attention.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
governance_lurkervip
· 20h ago
$28.9 billion in debt repayment? Bro, are you joking? With a $38.6 trillion hole, this little amount is not even enough to scratch the surface. Both tariffs and money printing, and in the end, it's still the common people who pay the price. I'm tired of this routine. Avoid Congress? That's just setting a trap for later. When something really happens, who will be responsible? What can $2,000 do? It doesn't even match the purchasing power lost to inflation. Can tariff revenue be stabilized? I doubt it; the trade war seems endless. This move is like drinking poison to quench thirst. Short-term satisfaction, long-term suffering.
View OriginalReply0
MeaninglessApevip
· 21h ago
It's the same old story, using tariff revenue as a cookie? 388 trillion in debt, just 280 billion to plug the hole, who can come up with that? --- Honestly, a $2000 check sounds great, but isn't this just moving money from the left pocket to the right? In the end, we’re the ones paying the bill. --- Wait, bypass Congress and send it directly? I've never seen this move before. Once again, crossing the bottom line, huh? --- Tariffs keep increasing, goods getting more expensive. What can $2000 do by then? Probably just giving it away for free. --- Sustainability? Wake up. This is drinking poison to quench thirst. The $38.6 trillion hole can’t be filled. --- Really interesting—using trade war revenue to distribute money. The logic is the same as cutting your own leg to stop bleeding.
View OriginalReply0
GateUser-ccc36bc5vip
· 21h ago
Here we go again, cutting leeks. Can tariffs really pay off the debt? With 38.6 trillion in liabilities, it's just a joke. A 2000 yuan check sounds great, but then inflation eats half of it. The Americans are tired of this trick. Bypassing Congress directly? Does this guy really think he's an emperor... Capitalist democratic systems are just like this. Tariff revenue staying high? Wake up, the market will retaliate, and things will get even harder then. The phrase "a drop in the bucket" is perfect. How to fill the 38 trillion gap? Printing money is inevitable. So it's still that old, worn-out Keynesianism—prosperity in the early stage, inflation in the later stage. I bet crypto will take off again with this cycle. If this logic can be justified, I’d do a headstand and wash my hair—just a sham operation.
View OriginalReply0
BrokeBeansvip
· 21h ago
$28.9 billion? That's laughable. In the face of this debt, it's nothing more than a drizzle. Do they really think Americans are all elementary school students?
View OriginalReply0
GovernancePretendervip
· 21h ago
$28.9 billion against $38.6 trillion in debt—aren't they just using chopsticks to scratch an itch? It's no wonder tariffs can't continue.
View OriginalReply0
TokenDustCollectorvip
· 21h ago
28.9 billion is a drop in the bucket? Bro, how did you do the math? 38.6 trillion in debt piled up like a mountain, and the speed of cutting leeks isn't fast enough.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)