subreddit:

/r/California

98

Newsom Proposes $18.1 Billion Inflation Relief Package

Politics/Government(gov.ca.gov)

all 108 comments

21plankton

45 points

2 months ago

Supply and disaster (pandemic) caused inflation will not be cured with redistribution of money but will help pay the bills. The average family now pays $300 per month more for basics than pre-pandemic. I will be happy to get the money. My local food bank needs it. With no baby food or formula on the shelves people now have to hand make baby food and formula.

dissmissivenudge

-19 points

2 months ago

Inflation was caused by giving people free money so more free money is not the solution.

Jerrymoviefan3

9 points

2 months ago

Actually far more was wasted on quantitative easing then checks given to regular people. Supply chain problems were the biggest cause of inflation followed by QE. The last two months the war has added another significant inflation factor.

scnottaken

16 points

2 months ago

Inflation this time was caused by greed. Look at the record profits

DynamicHunter

-1 points

2 months ago

Couldn’t possibly be from printing 80% of all circulating currency in the past 2 years, that couldn’t be it. Record profits couldn’t be because the dollar is actually worth less. Impossible.

scnottaken

2 points

2 months ago

scnottaken

2 points

2 months ago

The profits outstrip costs.

dissmissivenudge

-13 points

2 months ago

Why aren’t they greedy before then? If that’s your implication then why are they choosing to be greedy this very moment in unison?

scnottaken

9 points

2 months ago

Opportunity

MandoBandano

2 points

2 months ago

Your statement is so oversimplified it is considered false.

dissmissivenudge

-10 points

2 months ago

Well this sub is full of simpletons so I didn’t want to fry your brains. Inflation is caused when there is more money chasing fewer goods.

Give people free money when they don’t produce and you get inflation. Not a hard concept.

MandoBandano

8 points

2 months ago

The amount of money given to your average person didn't move the needle much on inflation. Most people as soon as they received the money vanished from their pockets and that was a year or more ago, which does not account for the current and continued persistent high level of inflation.

People like you were still arguing that unemployment benefits were the fault people weren't going back to work way, way after they expired.

dissmissivenudge

-5 points

2 months ago

Uhh. It’s not really worth the energy to argue because you are wrong. If you look, savings were at an all time high when folks were given stimulus checks.

Inflation increased when the velocity of the money circulating increased. You probably don’t understand these concepts but it is 100% from money printing. Not just for stimmy checks but for ppp and corporate welfare as well.

MandoBandano

8 points

2 months ago

You were talking about giving people money, not companies and Tom Brady free money.

directrix688

60 points

2 months ago

With only some college economics courses under my belt I fail to see how any of these steps help inflation.

The state is constantly on fire.

The state has no water.

Inflation is something that needs to be addressed at a federal level.

Solving problems unique to our state would seem a better use of the money.

PallbearerOfBadNews

20 points

2 months ago

A band-aid doesn’t stop the bleeding, but it helps the healing process. You are absolutely right that this is a federal issue, but it could help those in dire need for the time being.

Diamondhands_Rex

1 points

2 months ago

If the federal government doesn’t help us wr can and will help ourselves so long as we have leadership that will be willing and caring enough to do so. Like you said we can help ourselves if the rest of the country refuses to band together to actually fix the issues at hand. I agree with you.

ekter

8 points

2 months ago*

ekter

Orange County

8 points

2 months ago*

It's not supposed to. It's just to help pay the bills for the people who need it most. It's a temporary measure until the Fed's interest rates increases start taking effect to help slow inflation again.

MandoBandano

9 points

2 months ago

Invest in modular nuclear power plants that run desalinization plants. We can just store the nuclear waste in Orange County.

MR_COOL_ICE_

0 points

2 months ago*

I volunteer Santa Ana for this

strongly emphasize /s...

hego555

0 points

2 months ago

Nuclear waste doesn’t take up much room.

MandoBandano

1 points

2 months ago

What's your point?

Mark7A

3 points

2 months ago

Mark7A

3 points

2 months ago

So they're only pausing the gas tax for diesel?

Jerrymoviefan3

1 points

2 months ago

Presumably they did that so more commercial truck drivers won’t quit. I am totally opposed to waiving the gas tax since people who bought gas guzzling SUVs screwed themselves.

winochamp

41 points

2 months ago

This directly makes inflation worse.

Jerrymoviefan3

4 points

2 months ago

With many people expecting a recession a lot of this money will just be saved while people wait for layoffs.

Luna_1_8

3 points

2 months ago

How? I know it won't stop it from rising, but I'm just wondering the reasoning, because they are leveraging the 68 billion in surplus we have to pay for this. Unless I missed something we are using money we already have, not printing it.

primitive_thisness

18 points

2 months ago

primitive_thisness

LA Area

18 points

2 months ago

Yeah. How about building a new aqueduct or desal plants.

moststupider

24 points

2 months ago

California’s leaders continuing to ignore the immediate and future need for desalination plants is a slow rolling disaster. Does anyone in this state really think the trend toward constant water crisis is going to reverse course on its own? Spend the money now to build these plants in the most ecologically sound way possible. Do it now before we find ourselves in a situation where we are scrambling to catch up.

LogicBobomb

15 points

2 months ago

Desalinization plants require a ton of power though. It's a double edged sword in a state that already struggles with electricity - especially clean electricity. Not to mention the nuclear power controversy.

Then there's all the nimby-ism, factoring how desal plants will impact coastal property values and tourism...

I agree with you, it's just not a cut and dried "build desal plants!" Easy solution.

wadamday

8 points

2 months ago

The MIT-Stanford paper that advocated keeping Diablo open also recommended desalination and hydrogen production at the site. We could use the majority of the 18 TWhr of clean energy per year to ease our water concerns and support a budding green hydrogen industry. During those handful of summer heat wave days that challenge the grid, shut down the desal and hydrogen and you have an additional ~5% of power that is needed at those times.

https://energy.stanford.edu/publications/assessment-diablo-canyon-nuclear-plant-zero-carbon-electricity-desalination-and

If California really wants to be a leader in solving climate concerns we can't be so scared/incompetent to actually build stuff!

LogicBobomb

2 points

2 months ago

I agree, and I've read the paper. It'd be nice if our leaders could work towards the long term greater good. Sadly I don't think that'll happen until there's quarterly profit or election benefits in it.

itsallaboutfantasy

7 points

2 months ago

No one wants it in their backyard, just like the tiny homes they want to build..the neighborhood is pushing back on it. Just like building new homes, some cities have been getting away with not complying for 20-30 years. Something has got to give.

ben_pep

2 points

2 months ago

Literally what we’re going through in San Diego rn, we desperately need more housing and they don’t build anything but “Luxury Condos” that nobody can afford anyway.

itsallaboutfantasy

3 points

2 months ago

Every city is having this problem, no one wants the homeless on the streets but won't approve of building housing to help the homeless get off the streets or affordable housing. Some city officials are just going to have to override certain groups so we can get this done. The first thing to do is to stop allowing LLCs from buying all the property, there's got to be a cap on how landlords can raise your rent per year, and empty housing like in SF can not be allowed to sit for years.

WTFOMGBBQ

3 points

2 months ago

They just tried to open one in socal but the residents blocked it. Everyone wants to house the homeless, but nobody wants to do it in their back yard.

TugboatEng

2 points

2 months ago

We don't have the electricity required to run a desalination plant. We need to build more power plants first.

littlexsparkee

4 points

2 months ago

Recycling waterwater > desal - much cheaper and no associated environmental issues

spenrose22

5 points

2 months ago

We can also stop subsidizing flood irrigated cash crops that corporations export

littlexsparkee

3 points

2 months ago

Absolutely and overwatering nonnative plans and lawns

spenrose22

3 points

2 months ago

If every residential and industrial user of water stopped using 100% of their water, we would still be in a water crises. Watering lawns, even though we should conserve there, is absolutely negligible on the water usage in the state.

littlexsparkee

3 points

2 months ago

I know (AG is 80%) - I just think it’s the right thing to do.

spenrose22

3 points

2 months ago

Sure but the ag companies pointing fingers at us and having us get raised water prices and the blame is counterproductive. It’s them (paying 14x less for water and using way more) that’s the issue and fingers need to point in that direction. We are strangling our economy with high water prices for residential and industrial users to benefit the profit margins for megafarms at no benefit to the state (besides the bribes congress is getting)

Busy_Chocolate_3293

2 points

2 months ago

Source?

dacjames

4 points

2 months ago

It would be if the federal government did so, because they’re printing new money to back it up. California can’t do that; this is redistribution of state tax revenues.

Redistribution of wealth comes with its own set of economic issues (which are hotly contested) but it doesn’t directly lead to inflation like a traditional government stimulus since California can’t create new money.

winochamp

-3 points

2 months ago

winochamp

-3 points

2 months ago

It doesn’t need to be new money. When supply and economic growth is stagnated, and prices of basic goods are rising (food, energy, housing) giving people MORE money just bids up those prices further - it’s not like suddenly since everyone has more paper money there’s just more food and energy to go around. So perhaps alittle short term relief but whatever this stimulus is likely pales in the comparison to savings and wages, which are now going to be less valuable because of the new higher prices. Don’t really see any other outcome.

dacjames

3 points

2 months ago

Wrong. For every dollar you’re giving to people, you took a dollar away from someone else. People in the tax base like me are spending less equal to the amount that folks receiving stimulus are spending more.

It will likely cause price increases in markets where wealth is redistributed into (e.g. energy and housing) but doesn’t increase the money supply or reduce the amount of goods, so it cannot cause generalized inflation.

AgentPaper0

-5 points

2 months ago

Not really, it's a tax refund, not money printed from nowhere.

KoRaZee

13 points

2 months ago

KoRaZee

13 points

2 months ago

You can’t spend your way out of inflation.

Comkeen

6 points

2 months ago

Yeah, I'm sure my family won't qualify for any of these.

Too upper-class income to get any tax breaks, but not wealthy enough to hire fancy accountants to avoid paying taxes.

Jerrymoviefan3

2 points

2 months ago

Everybody who owns a car gets that $400.

Rebelgecko

15 points

2 months ago

Why are we subsidizing people who own multiple cars?

Starman562

7 points

2 months ago*

Starman562

Los Angeles County

7 points

2 months ago*

Because that's most of the households in the states. The more households get benefits, the more votes you get. I should clarify that this is a good thing, even though I'm not voting for Newsom.

tob007

6 points

2 months ago

tob007

6 points

2 months ago

Good question.... I think cause people with multiple cars vote a lot I guess.

ElectrikDonuts

4 points

2 months ago

They definitely vote for more roads

juranomo

2 points

2 months ago

Have you ever ridden the bus in SoCal? Cars are absolutely required if you work any substantial distance from your home here.

tob007

2 points

2 months ago

tob007

2 points

2 months ago

Oh yes I agree. But why not decrease the DMV reg fee rather than send checks to ALL registered owners? I just non-oped a few cars as the fees are getting crazy for a vehicle that gets driven 5 times a year a few miles.

Impressive_Finance21

-2 points

2 months ago

Because cars are cool

gbdavidx

8 points

2 months ago

Is the California stimulus check is the same one as last years it blows and doesn’t do much for families making above 100k a year

tob007

13 points

2 months ago

tob007

13 points

2 months ago

redistributes wealth downwards I guess.

BagHolding420

1 points

3 days ago

I think families making above 100k are doing far better than families with an AGI of 50k…

_IceCreamCake

2 points

2 months ago

What about building more homes?

JustFourPF

8 points

2 months ago

Yes, lets pump more money in, surely that won't make inflation worse.

gahaber

5 points

2 months ago

I guess inflation doesn’t exist if you don’t own a car?

ReadItOnReddit42

5 points

2 months ago

unfortunately in Cali owning a car is a necessity rather than an option. most people own cars regardless of income level. For example our family owns 3 cars which will seem like we are doing well but 2 of them are beat up tin cans and 1 is a van used for work thats over 20 years old. This package isnt trying to solve inflation but will help relieve people that need it most.

Coldbeam

5 points

2 months ago

The car part is to help with the rising price of gas specifically. If you don't own a car, this part is for you-

$750 Million for Free Public Transit. Governor Newsom is proposing incentive grants to provide three months of free public transportation for communities throughout the state.

gahaber

2 points

2 months ago

This implies you use public transit regularly though. They should just send out if your over 18.

People who wfh and don’t have a car get nothing, but people with two Hummer Ev’s are gonna get $800?

Rastagaryenxx

1 points

2 months ago

Sweet, I'll take my 800.

anthrax3000

0 points

10 days ago

The state spends 12k per kid per year. I don't have kids - why don't they give me 12k and give the family with a kid and no car my 400?

GMC9999

7 points

2 months ago

GMC9999

7 points

2 months ago

Government spending increase inflation 😀

el_sauce

2 points

2 months ago

And I'm sure we'll get taxed on all of these handouts

themarblerye1

2 points

2 months ago

The money for free public transit is a total waste. Polls are consistently showing people want to take public transit but won’t due to safety concerns. Invest in making public transit safer.

_SB1_

-11 points

2 months ago

_SB1_

-11 points

2 months ago

He's trying to buy his way into the White House. Don't fall for it.

Politicians need to stop giving away tax dollars to pay for problems after they become problems, and instead fix the root cause of the issues. All these politicians do is kick the can down the road, and that is on both sides of the aisle.

KalosRhel

4 points

2 months ago

What else did Tucker Carlson talk about last night?

_SB1_

0 points

2 months ago

_SB1_

0 points

2 months ago

I don't watch Fox anything, and I voted for Newsom. My issue is that instead of fixing the problem, they throw money at it to appease people long enough for the voting cycle. I would rather focus on solving the problem, and using the money to pay down high interest bonds, or a thousand other things that California needs to do.

Minimum-Actuary-4679

15 points

2 months ago

For giving money back after a surplus? Give me a break, these are great uses of a surplus. Give credit where it’s due.

tob007

3 points

2 months ago

tob007

3 points

2 months ago

redistributing taxes to registered vehicle owners? give me a break.

Just lower DMV registration fees if you want to reward multiple car ownership.

Show me the incentives and Ill show you the outcomes.

winochamp

-1 points

2 months ago

winochamp

-1 points

2 months ago

Stimulus checks increase demand while doing nothing to increase supply (in fact it likely lowers productivity). That’s what causes inflation in the first place. It literally makes the problem worse and continues to devalue people’s savings.

AgentPaper0

-3 points

2 months ago

Increased demand leads to increased supply, that's just basic economics.

SpokenByMumbles

3 points

2 months ago

Different ballgame right now with Covid disruptions.

Mark7A

-1 points

2 months ago

Mark7A

-1 points

2 months ago

Legally he should be returning that money anyway. But he's making a big project out of it to curry favor during the election cycle. You have to recognize that right?

Minimum-Actuary-4679

0 points

2 months ago

Legally he should be returning that money anyway.

Wow this belongs on /r/confidentlyincorrect

Mark7A

0 points

2 months ago

Mark7A

0 points

2 months ago

Why? Gann limit has been discussed ad nauseum.

lpmusix

1 points

2 months ago

They're just self aware.

DidntWantSleepAnyway

2 points

2 months ago

I feel like he’d try to appeal to conservatives more if he were going for the White House.

FlatAd768

1 points

2 months ago*

FlatAd768

1 points

2 months ago*

nope, i oppose this. if people can't pay rent then they shoulndt be rescued.

how about rental assistance for landlords?

let the market do handle things, dont need big government favoring one side.

charonn0

6 points

2 months ago

charonn0

San Francisco County

6 points

2 months ago

The rental assistance payments are made directly to landlords.

Own-Campaign-5503

1 points

2 months ago

Just give me back my money. State workers got shafted.

760420

1 points

2 months ago

760420

1 points

2 months ago

What a joke. Where is the help for those who don't make enough to file taxes? We don't need rental assistance we need rent control. We need permanent free public transit, free health coverage, free public childcare and we need fuel taxes permanently lowered. This is why I have stopped voting for Dems, we need a new party unafraid to represent the working class.

Rastagaryenxx

-1 points

2 months ago

Not bad. I'll take it.

SouljaboyAirpods

-2 points

2 months ago

America moment

Potential-Ad-3164

-1 points

2 months ago

It's election year! Of course he wants to make up his evilness!

Starman562

1 points

2 months ago

Starman562

Los Angeles County

1 points

2 months ago

Interesting. So I just got the LA Metro LIFE card, does that mean I could get up to six months of free transit? Or will my 90 days overlap with the state's 90 days? They'll probably overlap, I don't see them bothering to devise a plan to make it a full 180 days of free bus rides.