07/07/2022
INFLATION STIMULUS CHECKS? Let's keep it simple... in response to Dave Ramsey's article, https://www.ramseysolutions.com/budgeting/inflation-stimulus-checks?utm_source=cnl&utm_medium=email&utm_content=7.3_cnl_blog_1_ramseyplus&utm_term=rplus_bu&utm_campaign=cnl_newsletter&utm_id=cnl_newsletter&cd17=RSCOM-11671_CNL-Eng&_kx=ZDuhhBGyUXgQJAkybSb0MGDsrn_RTL8qQsckDugbrIIqvLgVprZe0sj6QlBlFBA7.RzHn5B
The three mechanisms to control inflation are –
1) HIGHER interest rates. The Fed does that. Interest rates often take a mid-term effect.
2) HIGHER tax rates. Congress does that. Tax rates often take a long-term effect.
3) LESS government spending. Some refer to this as the “Keynesian Economics.” This often has a short-term effect.
And the State governments want to fight inflation with MORE government spending, in the form of “Inflation Stimulus Checks?” “Inflation Stimulus Checks” are going to make inflation WORSE!
California is my Home State. San Jose… the heart of “Silicon Valley.”
Now, I miss the 45-minute drive to the beach, but I do not miss the California economy and politics! Personally, I am saddened to see that California is one of the States adopting an "Inflation Stimulus" policy.