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James Fishback Proposes $5,000 DOGE Dividend

James Fishback, a 30-year-old investment firm founder, has proposed a "DOGE dividend" of $5,000 to be distributed to every taxpaying American household. He insists the plan will not lead to inflation due to current economic conditions being "very different" from past stimulus payments.

Elon Musk's Role in DOGE

Newsweek reached out to Elon Musk, head of the Department of Government Efficiency (DOGE), for comment on Thursday. Emails were sent to Tesla and SpaceX press offices outside of regular working hours.

Why It Matters

Critics argue that Fishback’s proposed payments could drive inflation higher by increasing demand without a corresponding rise in supply. This could be politically harmful to Trump, who previously criticized the Biden administration for inflation before the 2024 election.

Understanding DOGE and Its Impact

After assuming office for his second term on January 20, Donald Trump established DOGE under the leadership of Elon Musk. The agency was created to eliminate wasteful government spending. Since its inception, DOGE has led to thousands of federal job cuts and has moved to dismantle the United States Agency for International Development (USAID).

How DOGE Dividend Would Work

Fishback, who is reportedly advising DOGE, suggested that savings from budget cuts could be redistributed to American taxpayers. In February, Trump stated that the proposal was "under consideration."

Has DOGE Cut Government Spending?

DOGE claims to have reduced federal government spending by $55 billion. However, this figure has not been independently verified.

Concerns Over Inflation

Between 2020 and 2021, three rounds of stimulus checks were issued to help Americans during the pandemic. Critics argued these payments contributed to record-high inflation, which peaked at 8.6% in May 2022, according to the U.S. Labor Department.

Fishback Defends the Plan

Speaking on Fox Business, Fishback insisted that his proposed payments wouldn’t drive inflation higher. He pointed out that current economic conditions are vastly different from when the Biden administration distributed stimulus checks.

He explained: "In 2021, we had a supply chain crisis, a labor shortage, and a Federal Reserve printing $100 billion a month with interest rates at zero. Today, we have lower energy prices, deregulation, and controlled fiscal spending."

He also cited polling data suggesting that 70% of Americans receiving the DOGE dividend would use it to pay off debt, which he argues would have a deflationary rather than inflationary effect.

What Analysts Are Saying

During an appearance on The Dana Show, Fishback reiterated that deregulation and reduced government spending make today's economic conditions vastly different from those under the Biden administration.

Trump’s Statement on the Proposal

Speaking at the FII Priority Summit on February 19, Trump said: "We are considering a plan where 20% of DOGE savings would be distributed to American citizens, with another 20% allocated to paying down national debt."

Expert Opinion on Inflation Risks

Speaking to Newsweek, Lance Roberts, chief investment strategist at RIA Advisors, expressed concerns about inflation. He stated: "If you increase demand without increasing supply, inflation follows." He suggested that tax credits might be a more effective approach, benefiting lower-income households without triggering a major demand surge.

What Happens Next?

While the DOGE dividend proposal remains under discussion, no official decisions have been made. It is unclear whether Trump will approve the plan.

Correction Notice

On March 6, 2025, at 14:08 ET, this article was updated to correct an earlier statement that incorrectly claimed three stimulus payments were issued during Biden’s presidency between 2020 and 2021.