Luís Gomes warns at Univision that Trump checks could be expensive [vídeo]

Portuguese economist and political analyst Luís Gomes commented this Monday on the North American channel Univisión on Donald Trump’s proposals that provide for a check of 2,000 dollars per person and 50-year mortgages, warning of the risks of inflation and structural imbalances.

Trump proposes new $2,000 check

The President of the United States, Donald Trumpannounced a new economic stimulus package that includes a direct check of 2,000 dollars to the majority of US citizens, financed by customs tariff revenues.

During the program Prime Time and Univisionthe Algarve economist and political analyst Luis Gomes analyzed these measures, considering that the proposal has essentially political motivation.

According to Luís Gomes, “Trump tries to give a signal of proximity to the middle class in a context of loss of purchasing power, but he does so through unsustainable solutions”. The economist explained that the idea of ​​redistributing dividends from tariffs “aims to regain popularity after eleven difficult months of governance”, adding that “sixty percent of Americans are not satisfied with the state of the country and attribute responsibility to the president”.

Inflation risk and impact on the labor market

In the interview, Luís Gomes warned that the financial impact of the measures could be greater than the revenue generated by taxes on imports.

“The result of the tariffs could be between 200 and 300 billion dollars, while the provision for checks is around 600 billion. If these numbers are true, it is not a question of dividends, but an injection that increases inflation and puts pressure on the labor market”, he stated.

The economist also highlighted that the North American job market “is losing momentum” and that Trump “seeks to quickly compensate the middle class, which is most affected by rising prices and interest rates”.

50-year mortgages can worsen debt

Luís Gomes also addressed the proposal to create mortgages with terms of up to 50 yearsa measure that the North American president presented as a way to facilitate access to housing.

The political analyst considered that “in the short term, the measure is interesting, because it reduces the value of monthly installments and boosts the economy”. However, he warned that “in the long term, people will end up paying more, and the structural problem of housing — the shortage of supply — will remain unresolved.”

Popular measures, uncertain effects

Donald Trump’s proposals — the $2,000 check and 50-year mortgages — were presented as solutions to stimulate consumption and ease the cost of living. However, according to analysts cited by Reuters and by BBCthese policies could worsen the deficit and create new imbalances in the real estate market, if they are not accompanied by structural reforms.

For Luís Gomes, “the popularity of these measures is immediate, but the social and financial cost will come later”.

Also read: