California Fights Inflation by Sending People Free Money

“Every taxpayer earning less than $75,000, or joint-filers earning less than $150,000, will receive a $350 check, plus another $350 if they have children, reports CBS. A married couple with children would qualify for the maximum of $1,050. Higher-income people would receive smaller refunds.

The checks are the most advertised portion of a budget deal totaling some $300 billion. They help dispense with a $97 billion budget surplus buoyed by unexpectedly high tax returns from the highest-income Californians.

It should almost go without saying that giving out individual stimulus checks is more likely to exacerbate inflation than cure it. The $1.9 trillion American Rescue Plan, passed in March 2021, which included $1,400 stimulus checks, is estimated by one Federal Reserve Bank of San Francisco analysis to have raised inflation by 3 percentage points.”

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