Some of L.A.'s poorest families received cash assistance of $1,000 a month as part of a 12-month pilot project launched nearly three years ago. There were no strings attached and they could use the money however they saw fit.
"Ball and colleagues conclude that the rise in the ratio of job vacancies to unemployment contributed almost a third of the rise in core inflation of 2.0 percentage points over a 12-month period. The 2.0-percentage-point increase in inflation explains about half the rise in core inflation, climbing from 2.3 to 6.9 percent (total increase of 4.6 percentage points). And finally, they found that the main contributors to the headline inflation shocks were energy prices (2.7 percentage points) and a backlog of work (1.7 percentage points)." www.bls.gov
Stop buying into the old idea of inflation being caused by the stimulus bill. We did this on a massive scale before, pumping all kinds of dollars into the under something called "Quantitative Easing." We were told over and over that that would make inflation skyrocket. It didn't.
These are old ideas that no longer apply.
Besides, giving someone $1,000 a month could only be inflationary under the "old thinking" if the supply of printed money was exxpanded (more dollars printed), not taken out of the economy (taxes). The "old thinking" was that if an asset was worth $1,000 and it took $1,000 dollars to buy it, then you print an extra 1,000, that the $1,000 is worth only $500 because there are twice as many "dollars" as before. This assumes that there's something backing the "value" of that $1,000. That is not the way a fiat economy works.
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