National Economic Council Director Kevin Hassett recently addressed concerns regarding the potential inflationary impact of Department of Government Efficiency (DOGE) checks. President Donald Trump's proposal to provide taxpayers with 20% of savings identified by DOGE has raised fears of reigniting inflation, particularly as efforts have been made to combat the upward pressure on prices following the Covid-19 pandemic.
During a White House news briefing, Hassett dismissed worries about the so-called 'DOGE Dividend' contributing to inflation. He emphasized that government spending, rather than direct cash transfers to individuals, is the primary driver of inflation. Hassett also highlighted the tendency for individuals to save money received, which can help reduce demand and mitigate inflationary pressures.
