California Governor Newsom is once again showing his socialist side. Not long after declaring that illegal immigrants in his state will receive full health care, he has now announced stimulus checks to help his residents pay for consumer goods.
State leaders have agreed to a bill that will give free money to defray the rise in costs of essential goods like food and gas. So here we go again, more government spending in the “hope” that it will offset the bulging inflation that is felt across the nation for the last year.
Newsom signed the $17 billion stimulus bill late last week.
“We have an agreement with the legislature on California’s budget! This budget takes immediate actions to give $ back to millions who are grappling with global inflation and rising costs while tackling some of the greatest challenges of our time,” the Office of the Governor of California proudly announced last week in a tweet.
Just like the federal government did in response to the government shutdowns during the pandemic, the checks sent by the California government will be means-tested.
That means that a couple who earns $125,000 combined and has two children will qualify for $350 per adult with the addition of another $350 for their children. The family of four would receive a total of $1,050.
If you earn as a couple at least $500,000, or as a single you earn at least $250,000, you will not qualify for a relief check.
According to Fox 5 San Diego, there are more than 20 million California residents who will receive a stimulus check.
The state has made it easy for its residents to determine if they are eligible and how much they should receive by providing a “middle-class tax calculator.”
What nobody seems to be talking about is how stimulus checks like the ones California is ready to dole out are the same government policies that caused inflation to go sky-high in the beginning.
According to CBS News, “Economists credit the combination of government stimulus spending — like direct payments to families and loans to businesses — and supply-chain problems as contributing to the current inflation crisis.”
Those who are defending the plan argue that it will not contribute to the national problem because they are just redirecting money from the $97 billion budget surplus that was announced by the state six weeks ago. They won’t be printing more money and putting it into the economy in an artificial way.
Newsom said in a statement that the inflation-relief checks are tax refunds that will send a total of $9.5 billion back to state residents. The governor had proposed checks for $400 per vehicle that people owned, with a cap on two vehicles per family.
The bad news for those that need it right now is that residents in California won’t see their money that will be direct deposited or given through debit cards until October.
Today, gas prices in the state reached $6.27 a gallon. That is almost 30% higher than the national average.
While these checks will undoubtedly take the edge off higher prices at the pump, there has to be a concern due to the 40-year record inflation. Experts on the economy indicate that this problem is a combination of government stimulus in the form of direct payments to families and loans to businesses and the supply chain issue.
This move by Newsom has some Republicans longing for the days of Governor Schwarzenegger…who knows, maybe “He’ll be back!”