by Amanda Head
Top economic advisor Steve Moore is on board with DOGE $5,000 checks, clearing it of inflationary impact, and says that democrats' resistance makes their party “champions of waste.”
Since news broke last week that Elon Musk wants to send $5000 as a waste reduction dividend to every taxpaying household, outlets like CNN and Forbes and are repeating DNC talking points that it could make matters worse.
National Economic Council (NEC) Director Kevin Hassett defended the plan to CNBC, noting that if the government spends the money on a program or sends it back to the American people -- who will spend it back into the economy or save it -- the outcome is the same. But in the latter scenario the American people get some money back. “Imagine if we don’t spend government money and we give it back to people, if they spend it, you’re even but they’re probably going to save a lot of it in which case you’re reducing inflation” he told the press during a briefing at the White House last week.
It can be done in six to nine months
Notwithstanding fears about inflation being heightened by another stimulus-type check to Americans, the economy has a major renovation job ahead. Many blame that stimulus spending for the inflationary surge during Biden’s term in office.
Moore, who served as President Trump’s senior economic advisor told the “Furthermore with Amanda Head” podcast that for Trump to overhaul Biden’s economy, “he needs a big pooper scooper to clean up the mess that was left behind… everything that Trump is doing is deflationary; whereas, everything that Biden did raised the cost of businesses and led to runaway inflation.”
It can be done, however. Moore gives a timeline of six to nine months for Trump to undo the damage and for the American people to start feeling relief. “Trump will turn it around. We’re going to get inflation back down at 2% but it’s going to take a little while.”
A significant contributor to that economic recovery is reducing the cost of oil and gas. In 2024, 82% of energy consumption was sourced from traditional means like oil, gas and coal. The Biden administration, through vehicles like the Green New Deal, allowed for regulations and standards that stymied or halted altogether domestic energy production.
The "Green New Deal," introduced by Rep. Alexandria Ocasio-Cortez and Senator Ed Markey in 2019, has not passed legislatively, but its core principles have been implemented throughout industry and used as a template for blue state policies like California’s push to eliminate gas-powered cars.
Speaking to the seeming intentionality of Biden damaging energy production, Moore cited the first-day-of-office action by Biden to shut down the Keystone XL Pipeline, and asked, “why would anybody do that? Why would they try to destroy American infrastructure?”
While legacy media outlets ran coverage for Biden and stuck to DNC talking points, Biden ultimately admitted in January of 2023 that the cancellation of the natural gas resource in fact cost thousands of jobs and revenue in the billions.
Dodged a bullet
Other contributors to the rebounding economy are government spending and the tax bill Americans must pay to satisfy that spending. The budget resolution passed by Congress on Tuesday provides a framework for what needs to be done. Each of the House’s committees are now tasked with finding tax cuts and opportunities to reduce spending. The resolution passed 217 to 215 with all Democrats and one Republican voting against it.
Digging into the alternative had it not passed, Moore indicates Americans dodged a bullet: “Republicans voted to stop the biggest tax increase in the history of this country” that would’ve hit taxpayers next January. When asked what a $4 trillion tax increase would have cost the average, middle-income household, Moore said, “The average family would pay somewhere between $2000 and $3000 a year more on taxes.”
Amanda Head
Source: https://justthenews.com/government/economist-says-doge-checks-are-exactly-right-thing-incentivize-washington-find-waste
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