Elon Musk and Donald Trump have a golden opportunity with the Department of Government Efficiency (DOGE). Tasked with slashing $2 trillion in federal waste, they’ve sparked a debate: what to do with the savings? Two paths emerge. One, backed by Musk and floated by President Trump, is a “DOGE Dividend” — $5,000 tax refund checks for American households, drawn from 20 percent of the savings, or $400 billion.
The other, my preferred proposal, is to use that $400 billion to pay down our ballooning national debt. Here’s why the latter isn’t just better for America — it’s the winning play for Trump’s loyal base.
Let’s start with the options. The refund idea, pitched by Azoria CEO James Fishback and cheered by Musk on X, promises a windfall: $400 billion split among 79 million tax-paying households. It’s a populist sweetener — cash in hand, a thank-you note from Uncle Sam. Trump’s mulling it, saying on Feb. 19, 2025, he’s “considering” the plan. Fair enough — it’s got appeal. Who doesn’t like free money?
But there’s a better way. Take that $400 billion and attack the $34 trillion national debt instead. No checks, no fanfare — just a hard swing at the fiscal monster choking our future. It’s not as flashy, but it’s smarter. Here’s why. (RELATED: From GDP to Reality: Putting the $35 Trillion Debt Into Perspective)
First, it’s about responsibility. Trump’s base — conservatives who powered his 2024 win — care about the long haul. They’re not just “America First” cheerleaders; they’re deficit hawks who see $34 trillion as a generational theft issue. Refunds might thrill the liberal spenders who’d never vote red anyway, but paying down debt resonates with the MAGA faithful. It’s not a handout — it’s a hand-up for the next generation. “Use the DOGE Dividend responsibly, for our future,” as I’d put it. (RELATED: The Stupid Party Gets Smart on Spending)
Second, it fights inflation — a burden all Americans feel. Handing out $400 billion in checks pumps cash into an economy still reeling from post-COVID price spikes. Remember 2021? Stimulus fueled a 7 percent CPI jump. More dollars chasing goods means higher costs for gas, groceries, and rent — pain every voter knows too well. Paying debt avoids that trap. Less government borrowing — like issuing fewer Treasury bonds — means less pressure to jack up interest rates. The money supply stays tighter, the dollar holds firm. For families stretched thin, this is relief that lasts. (RELATED: The Only Path Leading All the Way Out of Our Inflation Quagmire)
Third, it traps liberals in their own game. Progressives would rather splash $400 billion on solar panels, universal healthcare, or pet projects — spending that fuels their big-government dreams. Debt reduction flips the script: it’s fiscal restraint they can’t easily attack without looking reckless. Call it a tax break, and they’d cry “giveaways to the rich.” Call it debt relief, and they’re stuck defending trillion-dollar deficits. Refunds might win their applause — cash aligns with their handout playbook — but that’s a losing trade for Trump. Why toss a bone to the blue wave when you can outmaneuver them?
Critics might say $400 billion barely dents $34 trillion. True — it’s a start, not a fix — but it’s a signal: America’s serious about its books. Markets might calm, rates might ease, and that’s a win bigger than a one-time check. Others argue refunds juice the economy faster. Sure — if you want short-term buzz instead of long-term strength. Trump and Musk aren’t here for quick fixes; they’re here to rebuild.
Picture this pitch at a rally: “We’re not just cutting fat — we’re killing the debt monster for YOU, for your family, for America’s future!” Toss in a Musk tweet — “DOGE Deflates Debt AND Inflation!” — and it’s a message that sticks. No photo-op with a $5,000 check beats the pride of a nation standing taller.
The DOGE Dividend is a chance to do more than dazzle — it’s a shot to deliver. Debt reduction isn’t sexy, but it’s right. For the country, for the base, it’s a Trump-Musk legacy worth fighting for.
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Shaomin Li is a professor of international business at Old Dominion University’s Strome College of Business.
