Trump says his tariff revenues will both pay down America’s $37 trillion debt and possibly fund a public “dividend,” but Treasury data shows they fall short of even covering monthly interest costs.
In exclusive interviews with Fortune, Wharton’s Professor Joao Gomes and AEI’s Desmond Lachman warned that while tariffs may slow debt growth, they won’t meaningfully reduce it.
Markets are largely skeptical of Trump’s math despite some unconventional revenue wins.
The national debt has been skyrocketing.
@MicroWave Trump and his surrogates have said at different times that tariffs would (A) pay down the national debt and (B) increase domestic manufacturing.
But if (B) happens, then tariff revenue falls. And if (A) happens, it will mean manufacturing remained overseas.
These goals are perfectly contradictory.
Public dividend
I’ve got an idea! Let’s raise taxes on everyone and then give them checks for 1% of it and call it a dividend!
Trump runs this country like I ran my cities in Sim City 2000 when I was 10.
Clown. country. 🤡🤡🤡🤡🤡🤡🤡🤡🤡
Fascism is coming for Canada.
Best guess - is he so stupid he believes this or so dishonest he pretends?
Yes, he lies literally non-stop, so that’s always the safe bet, but with this tariff thing in particular, he seems to sincerely believe that they’re some kind of magic, and he fairly obviously has no idea how they actually work. So it seems at least possible that he genuinely believes this.
Which would take a special kind of stupid, but if there’s anyone capable of it, it’s Trump.
What I understand he has been fixed on tariffs since the 80’s. Plus this also the man who bankrupted 3 casinos. And those are supposed to be guaranteed cash machines.
And ultimately, for someone doing as much damage as Trump, questions of his intentions are irrelevant. He must be stopped.
Krasnov does whatever he’s been told recently. He doesn’t give half a shit what’s true. As in truely doesn’t know or care what’s true.
Based on his actual behavior, his marching orders have been to weaken the US seconomy, betray allies (especially in alliances that might constrain Russia), and destroy US soft power in science, education and culture.
Stupid? Would you consider someone who stares at the sun without eye protection or recommends drinking bleach to prevent diseases stupid?
Stares at the sun during an eclipse. Need to make it explicit how dumb he is.
Only the most stable genius.
Last time all of the money went back to the farmers to silence them… It’s not even a question of amount, they will never help the US budget because it will go towards businesses who complain about this and other ways Trump is fucking them.
Worked in south america
oh no thats right it didn’t
Yale economist interviewed by the NYT has a slightly more nuanced opinion:
“In a world where I think we are fiscally unsustainable, debt to gross domestic product is rising much too quickly. Part of the reason for that is the tax bill that was passed last month, but it’s rising. Finding ways to raise $3 trillion is a feat, and that’s just a fact.”
(She estimates $3T from tariffs)
Wow, $3T is a lot for the American consumer to pay. Does that assume payment from places that have just decided to not do business at all with the US?
Tariff revenues come from the importers, so it assumes payment from the Americans who can no longer afford to import the now-too-expensive foreign goods.
