California to hand out $1000 stimulus payments to residents to combat inflation
1–10 of 21 posts
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#2Can someone explain to me how printing more money and handing it to consumers is combatting inflation?
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#3Wow, only California would believe that handing out money combats inflation. To combat inflation, you need to reduce the supply of money, not increase it.
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#4Can someone explain to me how printing more money and handing it to consumers is combatting inflation?
combat? yes? win? no
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#5“Qualifying residents.” This is vote-buying with other people’s money, not legitimate public policy. No one believes this is a solution to anything, except maybe holding some seats while the Saudis snuff the SPR illusion.
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#6The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.
--- Thomas Sowell
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#7Can someone explain to me how printing more money and handing it to consumers is combatting inflation?
Not sure this qualifies as printing money, CA cannot issue currency, they will be spending from their budget which is tax payer funded no?
Is giving back money going to increase inflation? not sure how much of an impact a $1k payment will have on overall inflation. I would guess a lot less than the existing outside factors including the war in Ukraine and the impact of covid disruption and relief.
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#8It's a tax refund: https://www.gov.ca.gov/2022/06/30/governor-newsom-signs-budg...
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#9Can someone explain to me how printing more money and handing it to consumers is combatting inflation?
1. This isn't printing money.
2. Even if it was printing money, the mechanism by which printing money causes inflation is by making the currency weaker relative to other currencies. The US dollar is stronger than ever, so "printing money" has nothing to do with the inflation we're facing right now.
3. Giving people money can absolutely help combat inflation because it means people can pay for the food/gas/energy that they couldn't otherwise, especially if the inflation is the result of a supply shock, which is what appears to be happening right now. Combating inflation doesn't just mean reducing inflation. It also means helping people navigate the effects of inflation. And giving people additional money helps do the latter.
Re: California to hand out $1000 stimulus payments to residents to combat inflation
#10Can someone explain to me how printing more money and handing it to consumers is combatting inflation?
1. This isn't printing money. 2. Even if it was printing money, the mechanism by which printing money causes inflation is by making the currency weaker relative to other currencies. The US dollar is stronger than ever, so "printing money" has nothing to do with the inflation we're facing right now. 3. Giving people money can absolutely help combat inflation because it means people can pay for the food/gas/energy that…
1. Agree - it's coming from California's budget, and the state can't print money.
2. Partially agree - decreasing the value of your own currency is definitely going to drive up the currency amount needed to import goods into the country, but that's hardly the only driver for inflation - it also doesn't touch at all the inflation that's happening for services or real-estate/rents.
3. Pretty hard disagree. In fact - a supply shock is literally the definition of a period where "giving folks more money" is unlikely to do anything other than continue to drive prices higher. All you're doing is increasing the number of dollars available to chase the same limited supply. Price will increase as a result. Will the recipients of the cash influx have better purchasing power? Probably - but only at the expense of every other purchaser interested in the limited supply.