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Viewpoint: Trump's "money printing" will forge an inflation boomerang, and stimulative subsidies often bring about huge involuntary taxes.

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On November 9, KobeissiLetter published a detailed market analysis regarding “Trump's $2000 tariff bonus per capita” stating that President Trump has just announced the “tariff bonus,” with each American set to receive at least $2000, and it is expected that over 85% of American adults will receive this amount, with a total distribution exceeding $400 billion. Meanwhile, U.S. debt is approaching $40 trillion, and the economic impact of such large-scale “stimulus” payments is significant. First, who will receive this amount? The last stimulus payment was the $1400 stimulus check in March 2021. Full payments were only made to: individuals with an annual income of no more than $75,000, families with an annual income of no more than $112,500, and married couples with an annual income of no more than $150,000. The same standards will be applied in 2025: currently, about 220 million American adults meet these income criteria. Just as the 2021 stimulus checks greatly boosted consumption, however, a one-time “stimulus” often leads to a prolonged period of high Inflation. Following the last round of stimulus measures, U.S. inflation rates neared 10%. The funds aimed at stimulating the economy will only add fuel to the fire; the United States has never launched such a large-scale stimulus plan while the stock market is nearing historical highs. Ultimately, stimulus payments almost always turn into massive “involuntary taxes,” with the American people ending up paying several times the amount of the stimulus subsidies in the form of inflation.

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