California To Send ‘Inflation Relief’ Checks To Its Residents

Democrat California Governor Gavin Newsom is planning to send “inflation relief” checks of more than $1,000 to some of his state’s residents in the coming weeks.

The United States economy has been suffering from soaring inflation for the last two years. According to a recent report from the Bureau of Labor Statistics, prices rose 0.1% in August and 8.3% over the last year. Core inflation, which excludes volatile gas and energy prices, rose 0.6% in August and 6.3% over the last year.

According to The Sacramento Bee, California “Residents who filed their 2020 taxes may receive a one-time payment of up to $1,050 as soon as Oct. 7. Payments will extend through early next year.”

“Direct deposits will be issued first, starting Oct. 7 through Oct. 25,” The Sacramento Bee added. “The second round of direct deposits should hit accounts between Oct. 28 and Nov. 14.”

“We enacted the most comprehensive economic stimulus program in the nation last year, getting billions in immediate relief to millions of Californians. But many folks are still struggling, especially with high costs due to inflation, so we’re leveraging this historic surplus to get money back into the pockets of Californians,” Governor Gavin Newsom (D-CA) said in a statement earlier this year. “This inflation relief package will help offset the higher costs that Californians are facing right now and provide support to those still recovering from the pandemic.”

The decision is an odd way of fighting inflation since the current inflation crisis is a result of government spending, according to economist John Cochrane. According to The Wall Street Journal, Cochrane “traces the present inflation to the pandemic and the government’s response. Starting in March 2020, ‘the Treasury issued $3 trillion of new debt, which the Fed quickly bought in return for $3 trillion of new reserves.’ The Treasury then sent checks to people and businesses, later borrowing another $2 trillion and sending more checks. Overall federal debt rose nearly 30%. ‘Is it at all a surprise,’ Mr. Cochrane asks, ‘that a year later inflation breaks out?’”