AIER Senior Research Faculty Bob Hughes joins NTD News with Kevin R. Hogan to discuss recent efforts by California, Colorado, and other states to provide residents with Inflation Relief Stimulus Checks. From the states' point of view, we have to ask whether this is the most efficient use of their money, says Hughes. But it will help recipients, to the extent that it can help them avoid taking on more credit card debt, which they might use just to get their basic necessities.
The cons, says Hughes, are extra inflationary pressures: "If you've got extra dollars chasing a limited supply of goods, then you're going to drive prices higher." Previous massive stimulus checks have contributed to some of the inflation we're seeing now.
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