State residents are going to pour this money into a consumer market that already has excruciatingly high demand for many goods and services that are in short supply. The relief funds will add to demand for goods and services, something that is already a major source of inflation, said economist Sung Won Sohn of SS Economics in Los Angeles. “From Gov. Newsom’s point of view, fiscal policy is not his responsibility,” Sohn said. “He is trying to alleviate the pain inflicted on Californians by inflation, especially for low and moderate income groups.”
Source: Sacramento Bee
Bonuses for California Health Care Workers Clear a State Budget Vote. What’s Next?
