The Japan Times - Trump eyes $2,000 checks, 50-year mortgages as economic fears loom

While bristling at suggestions that he is the latest US leader facing an economic problem, Trump has also suggested plans ranging from $2,000 dividends for Americans to half-century mortgages.

- Affordability -

The cost of living has been on the minds of Americans since Democrats scored big wins in off-year elections last week in New Jersey, New York and Virginia, fueled by voters angry over rising prices.

Billionaire Trump insisted afterwards that "I don't want to hear about the affordability," lashing out at reporters -- including an AFP journalist -- when asked about the issue, instead opting to blame inflation on former president Joe Biden.

Yet Trump's MAGA movement has pushed him to react, and there are signs that Trump and the White House recognize the issue could damage Republicans in the 2026 US midterm elections.

The White House this week highlighted what it said were Trump's moves to lower prices on essentials like gas and eggs, and pointed to an announcement last week of a deal to lower the prices of some weight-loss drugs.

Trump meanwhile is set to "ramp up" his domestic travels in the near future to push his economic message, a White House official told AFP.

The 79-year-old tycoon has always made a big play of his economic prowess, and will recall the words of Democratic strategist James Carville, who famously explained what was behind Bill Clinton's presidential win in 1992 with the phrase: "The economy, stupid!"

- Dividends -

One of Trump's most eye-catching suggestions came on social media over the weekend as he proposed dividends of $2,000 for each American, funded by the sweeping tariffs he has imposed around the world.

The scheme is reminiscent of the Trump-branded stimulus checks he sent out during the Covid pandemic, but economic figures suggest that it may be a while before any tariff dividend checks arrive in the mail.

Trump said tariffs were bringing in "trillions of dollars," but US Treasury Department data showed customs revenues -- which includes tariffs -- rose by $179 billion in the January to September period of this year.

The US Supreme Court is meanwhile examining whether the levies are even legal.

Trump's spokeswoman Karoline Leavitt insisted that the White House was "committed" to the dividends and exploring legal options, but said there was "no timeline" for Trump's scheme.

- Mortgages -

Trump's most controversial suggestion -- again posed on social media -- has been to give homeowners the option of 50-year mortgages, instead of the normal maximum of 30 years.

"It's not even a big deal," Trump told Fox News this week. "All it means is you pay less per month, you pay it over a longer period of time."

But the idea has again enraged some in the MAGA movement, as it would end up with homeowners paying more interest to banks in the long run.

US media have reported that even key White House staff were furious with Federal Housing Finance Agency Director Bill Pulte for suggesting the 50-year mortgages without more consultations.

- Healthcare -

Trump has also suggested that the subsidies the government pays to health insurance companies under the so-called Obamacare program should instead go directly to Americans.

Extending subsidies was a key issue in the record US government shutdown that ended on Wednesday, and they will also likely be a big focus in the midterms.

In yet another proposal made on his Truth Social network, Trump said this direct payment would allow Americans to choose and purchase their own healthcare instead of the money going to "money sucking insurance companies."

Trump has however given very few details of how the plan would work.

S.Ogawa--JT