Re:More free money from Gavin Newsom!!!!!

San Jose CA

Description

Are you stating your personal prediction or facts? Why would it increase demand? Most all the people would spend the money and it would go back into the economy anyway. If the money is going to the lowest of income earners in California, meaning probably people making less than $50,000.00 a year (or something like that?). Most all of that money would be spent on things they need, or need to have done. Like paying off that credit card, using a little to pay towards rent/utilities, fixing a vehicle, or paying for registration,smog, groceries, cloths for their kids etc. Even if they end up going on vacation with it, they will spend the money on the plane ticket, gas, food(whatever). It goes directly back into the economy as consumer spending which is how the U.S economy functions. Most people don't expect "hand outs" unless that is something they are accustomed to getting. So, your "theory" is based on your own opinion and BULL SHIT. How would it worsen inflation? If California has a surplus of money(which it does) it wouldn't be doing anything negative to the local or state economy. Inflation is inflation. That is a "nation wide issue based on a number of factors that have influenced it" for the most part. Some states require more federal government handouts than others and California is not one of them. California's economy "supports and keeps other states" from going bankrupt or their local governments closing down because their economies are weak and have more people unemployed or retired people than say California or New York do. So, what exactly are you trying to say, or are you sticking with your weak ass argument? More free money from Gavin Newsom!!!!! (sausalito) Recently California Governor Gavin Newsom said he wants to give up to $1,050 to about 23 million Californians in the form of an “inflation relief check.” He said these payments will have income limits so the lower income earners will receive the most. Is this a good idea? Newsom’s plan to give more free money to consumers in the form of relief checks will increase aggregate demand and worsen inflation. While it is true that the demand reduction actions mean that the lowest income earners and those on fixed incomes will be hurt the most, giving away free money will increase demand and worsen inflation.