Hold on to your hats, folks — there's a new, totally out-there idea bubbling up in Washington, and it’s got everyone talking.
If you thought 2020’s stimulus checks were a surprise, wait until you hear about the latest proposal: returning money to taxpayers with checks, all thanks to Elon Musk’s government efficiency plan! Yep, you read that right.
The idea first popped up on social media (where all the good ideas seem to come from these days) and quickly made its way to the White House.
James Fishback, an investor who’s close to Donald Trump, pitched this eyebrow-raising concept, and believe it or not, Trump is loving it. In fact, he called it “fantastic” during an impromptu chat on Air Force One.
So, what exactly is this big idea? Drum roll, please: If Musk’s team (that’s the Department of Government Efficiency, a.k.a. DOGE, in case you didn’t know) can save a whopping $2 trillion by 2026, they propose sending some of those savings back to YOU in the form of a $5,000 check.
Cue the confetti and fireworks, right? But before you get too excited about your next shopping spree, let’s break it down — because not everything is as simple as it sounds.
Here’s the gist: If Musk’s team can actually cut that $2 trillion from government spending (fingers crossed, right?), they’re planning to send one-fifth of those savings back to taxpayers.
But hold up. That means about 79 million households would get a check, while nearly 40% of Americans might not be eligible because they don’t pay income taxes. Sounds a little complicated, huh?
Fishback says if this plan works, $1,250 per check is more likely — sorry, no $5,000 windfalls. But hey, any check is better than no check, right?
Now, let’s just say it’s still a big if. Experts are raising their eyebrows, wondering if Musk can really deliver on these grand savings. After all, cutting $2 trillion sounds like something straight out of a Hollywood movie. Skeptics are worried the plan is more dreamy fantasy than reality.
It all started with James Fishback, who casually launched his investment firm Azoria Partners at Trump’s Mar-a-Lago estate in Florida.
Then, on X (formerly known as Twitter), Fishback shared the proposal, and Elon Musk — yes, THE Elon Musk — chimed in, saying he’d run it by the president. Apparently, Musk’s team claims to have already saved $55 billion, but some are skeptical about the accuracy of those numbers.
So far, no one has really proven that these savings are legit, and the plan to cut government spending has faced its own share of doubts.
But hey, that didn’t stop Fishback from dreaming big. He argues that waste, fraud, and abuse in government are ripe for cutting, and with those savings, the people deserve a piece of the pie.
A $500 billion cut by 2026, which would make those checks closer to $1,250. It’s still a huge amount, but not quite the $5,000 that Trump and his team are touting.
While the proposal has caught attention for its boldness, economists are quick to point out that it’s not as easy as it sounds.
Douglas Elmendorf, a former director of the Congressional Budget Office, said it’s unlikely that Musk’s DOGE could achieve those kinds of savings, as most of the federal budget goes to areas that DOGE isn’t tackling, like federal benefits and taxes.
Then there’s the issue of inflation.
After the pandemic stimulus checks were sent out, inflation soared, and some are worried that another round of checks — even if they’re tied to government savings — could cause more economic trouble. Kevin Hassett, former head of the White House’s National Economic Council, insists it wouldn’t add to inflation, as the government was going to spend that money anyway.
But Ernie Tedeschi, a Yale economist, warns that the last thing the economy needs right now is more government checks.
The real question is: can Elon Musk and his team actually find $2 trillion in wasteful spending? Fishback believes that by focusing on eliminating waste, fraud, and abuse, the savings will add up.
However, experts aren’t so sure that government spending can be trimmed by anything close to that amount. As John DiIulio Jr., a University of Pennsylvania political scientist, pointed out, cutting government workers would only impact a tiny portion of spending, leaving most of the national budget untouched.
Even if Musk’s team manages to save billions, Elaine Kamarck, a senior fellow at the Brookings Institution, isn’t holding her breath. She called the proposal “ridiculous,” dismissing it as a pipe dream that won’t do anything significant for taxpayers. “There’s no money there,” she said.
Is this $5,000 check going to become a reality? Well, the jury’s still out. While Donald Trump and Elon Musk are throwing around some exciting promises, it’s looking like the odds are stacked against them.
Even if DOGE can trim some government fat, it’s unclear whether it will be enough to deliver on these massive checks for taxpayers.
But hey, it’s 2025— stranger things have happened. For now, we’ll just have to keep watching to see if Trump’s love for the plan is enough to make it happen. $5,000 checks?
Keep dreaming, but it’s likely we’ll see far less than that, and only time will tell if Musk’s budget cuts turn into anything close to reality.
