Elon Musk's DOGE Division Makes Bold Move, and President Trump Fully Supports It!

TradingKey – Elon Musk has proposed returning a portion of the funds saved from the federal cost-cutting plan to taxpayers, a move that has drawn widespread opposition. However, U.S. President Donald Trump has expressed his support.

On Wednesday, Eastern Time, President Trump endorsed Musk's proposal, which is led by the head of the government efficiency division, "DOGE," to return a portion of the savings from the federal cost-cutting plan back to American taxpayers.

Speaking at the "FII Priority Summit" in Miami Beach, Florida, Trump stated, "We are even considering a new concept of distributing 20% of the federal spending cuts achieved by DOGE as special subsidies to American taxpayers, while possibly allocating another 20% for repaying federal debt. This figure is just incredible."

Earlier this week, Musk responded to a post on his social media platform X, suggesting that President Trump announce DOGE dividends and send out $5,000 tax refund checks to taxpayer households.

As it stands, Musk's proposal has garnered Trump's approval. However, their actions have also sparked legal challenges and considerable opposition. Critics argue that such drastic measures, including canceling contracts and implementing layoffs, could undermine essential government services, yielding minimal long-term savings for taxpayers.

Additionally, there are concerns that the "dividend" approach could trigger inflation. In response, James Fishback, CEO of U.S. investment firm Azoria, argued that it would not for two reasons:

1. The dividend checks would be fully funded by the savings generated by DOGE, unlike the "COVID stimulus checks," which were financed by increasing the fiscal deficit.
2. The checks would only be distributed to taxpayer households, which tend to save any extra income rather than spend it.