As the Federal Reserve attempts to crush aggregate demand through the most aggressive monetary tightening policies in decades to cool red-hot inflation, California Governor Gavin Newsom has come up with the brilliant idea to stoke even more demand through a new round of stimulus checks.
“Millions of Californians will be receiving up to $1,050 as part of a NEW middle-class tax rebate.
“That’s more money in your pocket to help you fill your gas tank and put food on the table,” Newsom tweeted Sunday night.
NEW: Millions of Californians will be receiving up to $1,050 as part of a NEW middle class tax rebate.
That’s more money in your pocket to help you fill your gas tank and put food on the table.
— Gavin Newsom (@GavinNewsom) June 27, 2022
The “inflation relief package” is a staggering $17 billion and will provide relief payments on an income-based system. Bloomberg Law provides more details on how the stimulus scheme works for households:
