California has "Inflation Relief"!
Guess what?
The State of California Gov. Gavin Newsom and Democratic legislative leaders is offering a rebate plan as ‘inflation relief'!
Who qualifies for the checks?
Under the tax rebate plan, Californians earning as much as $75,000 for individuals or $150,000 for joint filers would receive $350 per taxpayer, plus an additional $350 if they have at least one dependent. A single parent would therefore receive $700 and two-parent families would receive $1,050.
Of course I don't qualify. Come to think of it, I did not qualify for of the covid-related rebates (um... except the first one- a miniscule amount!)
Here is a simple explanation of inflation in 2022 and its effect on dollar value given by Ian Webster, an engineer and data expert based in San Mateo, California.
$1 in 2021 is equivalent in purchasing power to about $1.08 today. The dollar had an average inflation rate of 8.58% in the last 12 months. As a result, the real value of a dollar has been decreasing recently. Purchasing power decreased by 8.58% in 2022 compared to 2021. On average, you would have to spend 8.58% more money in 2022 than in 2021 for the same item.
This means that today's prices are 1.08 times higher than average prices since 2021, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 92.593% of what it could buy back then.
The inflation rate in 2021 was 4.70%. The current inflation rate compared to last year is now 8.58%. If this number holds, $1 today will be equivalent in buying power to $1.09 next year. The current inflation rate page gives more detail on the latest inflation rates.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2022 is 292.30. It was 270.97 in the previous year, 2021. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.
Source: Inflation Rate in 2022
Some Californians are saying that the “inflation relief” package promoted by Gov. Gavin Newsom will push inflation to a higher level. Read it in Sacramento Bee
What is your opinion in the matter? Will the "inflation relief" push it to a higher level?
As for as the State government is concerned:
“It’s our view that this package will have a minimal effect on inflation — as it’s one-time and not ongoing relief — and by comparison is dwarfed by the size of the federal assistance provided during the pandemic. While we appreciate the academic arguments over what incremental effect this might have in the long term, Californians are dealing directly with the real-time price spikes fueled by inflation — and how it’s squeezing their day-to-day budgets right now.”
- H.D. Palmer, spokesman for the state Department of Finance
