Recently, Elon Musk suggested that the government should send every American taxpayer a stimulus check as a refund, thanks to spending cuts made by the Department of Government Efficiency (DOGE). A TikTok video promoting this idea has already gained over five million views, with claims that each taxpayer could receive up to $8,000. Public enthusiasm is evident, but a deeper look reveals why this policy is misguided.
According to the U.S. Debt Clock, DOGE has cut $113 billion in government spending as of this writing. That’s an impressive achievement, and as someone who would personally receive an extra $8,000, I understand the appeal. However, stimulus checks were a key driver of the record inflation that millions of Americans continue to struggle with today.
Consider the recent past: Just a few years ago, the Biden administration issued $1,400 stimulus checks as part of the Recovery Rebate Credit. Families with multiple children or dependents received significantly more, as the payments were $1,400 per eligible adult and dependent, meaning a family of four could receive $5,600. While that relief provided short-term assistance, it also fueled demand in an economy already constrained by supply chain disruptions.
The predictable result? Prices for essential goods—food, housing, and fuel—skyrocketed, eroding the purchasing power of everyday Americans.
A new round of stimulus checks, even if sourced from DOGE’s spending cuts, risks repeating this cycle. Injecting billions into circulation without a corresponding increase in production will likely drive inflation higher, offsetting any immediate financial relief with long-term economic pain. The fundamental issue remains: when too much money chases too few goods, prices rise, and working families bear the brunt of the burden.
To be clear, DOGE’s efforts to cut federal excess are commendable. Government agencies such as the Centers for Disease and Control, US Agency for International Development and the Consumer Financial Protection Bureau are bloated and in dire need of audits and reductions. Excessive government spending has played a major role in fueling inflation, and trimming that waste is an essential step toward economic stability. However, redirecting these savings into stimulus checks undermines that progress by maintaining the cycle of excessive government spending.
Instead of recycling money into temporary payouts, policymakers should use these savings to pay down the national debt or implement permanent tax cuts. One measure could be to extend or make permanent President Trump’s 2017 tax cuts, which are set to expire this year. Both measures would offer long-term benefits to Americans without exacerbating inflation. A smaller, more efficient government is the best path to lasting economic relief.
History provides a clear warning. Past stimulus efforts triggered inflation that strained household budgets, and another round would likely compound the damage. Rather than using DOGE’s success as an excuse to return to reckless spending, we should seize this opportunity to chart a different course—one that prioritizes fiscal responsibility over short-term political gains.
While stimulus checks might seem like a quick fix, they are ultimately a mirage. Recent experience has shown that flooding the economy with extra cash in an already overburdened market only drives up costs, harming the very people the policy is meant to help. Instead of repeating past mistakes, DOGE should focus on permanently shrinking the size of government, not finding new ways to spend. Policymakers must resist the temptation to hand out temporary relief and instead commit to sustainable economic solutions.
