Nationwide, inflation has been a thorn in the side of many Americans for over one year.
The American public has proposed a decrease in federal spending as a solution for the Biden administration to employ against inflation. However, the president continues to urge more congressional spending to further his own agendas.
Unfortunately, inflation isn’t going away anytime soon, according to economists. Economists have also warned that the Federal Reserve’s continued increases of the interest rate are likely to cause a recession.
Now, the state of California is implementing a new policy that’s designed to combat inflation.
A New Round of Stimulus Checks For California Residents
With everyday living expenses on the rise, California government officials have determined that stimulus checks are the necessary solution.
Individuals in the state who earn less than $250,000 per year will have relief handouts to look forward to. The same also applies to couples who bring in below $500,000 annually.
This means a family earning $125,000 per year with two children can look forward to a $1,050 check from the California government.
California Democrats would rather bribe you with stimulus checks than fix California's problems.
— steve hilton (@SteveHiltonx) June 29, 2022
Gov. Gavin Newsom (D) is already cheering on these stimulus checks, claiming they’ll be so helpful to people in his state who are struggling. The Democratic governor also asserts these handouts are going to help California take on the most serious difficulties “of [its] time.”
Thus far, at least 20 million Californians are expected to receive a check from the state’s government. The funds will come in October 2022 either through a debit card or via direct deposit.
An Ill-advised Policy?
The idea that more stimulus will help Americans fight back against high costs is at odds with feedback from multiple economists.
The present inflation crisis in the United States, for example, has been largely attributed to business loans and government funds that were doled out to families across America. In both 2020 and 2021, Republicans warned about the fallout that would stem from money being printed and then distributed to the general public.
— Meet Kevin (@realMeetKevin) June 27, 2022
Supporters of California’s new stimulus checks plan have a different outlook, though. The view here is that because the state is withdrawing funds from its budget surplus, Californians won’t ultimately end up paying for these checks with more inflation.