Hochul's "inflationary" "inflation refunds" are criticized by economic experts.

New York Gov. Kathy Hochul's plan to distribute inflation refunds to qualifying New Yorkers as part of her 2025 State of the State initiative was criticized by several economic experts.

About half of New York's 19 million residents received $3 billion in direct payments last week, with single taxpayers receiving $300 and joint filers getting $500, as proposed by Hochul.

Hochul announced a proposal to return revenues generated through the sales tax to middle class families in New York due to inflation.

Some economists and economic experts, such as Andy Puzder, argue that the move is merely a way to redistribute money in order to secure votes.

According to Puzder, the former CEO of CKE Restaurants, reducing the sales tax is a simple solution to help everyone if you have an excess of sales taxes.

Puzder was a lecturer on economics and a senior public policy fellow at Pepperdine University, and was considered for Labor secretary in the first Trump administration.

At CKE Restaurants, Puzder boosted Hardee's average franchise sales from $715,000 in 2001 to over $1 million in a decade.

The same policies advocated by Hochul and other Democrats, who are proponents of tax-and-spend, have contributed to the economic troubles in the U.S., according to him. Additionally, he stated that President Biden's American Rescue Plan was the catalyst for the nationwide inflation that occurred.

He stated that reducing taxes would result in fewer people leaving the state, as New York lost another House seat and electoral vote in the census.

A few top Democrats have advised their leaders against government "refunds," citing former President Bill Clinton's Treasury chief Lawrence Summers' warning to the Biden administration that such handouts in 2021 would increase inflation.

Milton Friedman's assertion that inflation is a monetary phenomenon was cited by former Rep. Dave Brat, R-Va., an economist and currently vice provost of Liberty University in Lynchburg.

In Hochul's case, the better fix for inflation is not in Albany but in Manhattan.

"The Federal Reserve's ability to control inflation is linked to the amount of money it prints. If she wants to return money to the government, that's acceptable – but she holds a significant position in New York as the Fed has a major office there. To address inflation, one must go to the Federal Reserve."

He pointed out that adding $500 for a family is a "trivial, symbolic move against a massive, hidden tax," as with an estimated 22% real-inflation rate over the past four years, $500 in 2020 purchasing power is only worth $390.

The addition of the word "brat" by Democrats has put Republicans at a disadvantage in politics because they must compete against Santa Claus giving out presents while the right warns the public to eat their spinach.

EJ Antoni, an economist, shared the view that the refunds could contribute to inflation, as he believed that the initial cause of inflation in the U.S. was excessive government spending.

Antoni stated that adding another government expenditure would result in a feedback loop.

The federal government is responsible for inflation because it is the only entity that can print money out of thin air. However, New York State's contribution to inflation should not be overlooked, as it can lead to an increase in the cost of living for its residents.

"Any extra government expenditure will have to be financed somehow."

Antoni predicted that the number of public payments would continue to increase, resulting in a need for higher taxes to finance them.

Hochul's proposal differs from Trump's COVID-era checks because the latter was given during a time when people needed financial assistance to survive due to stay-at-home orders and shutdowns of various job sectors.

He stated that reducing taxes is the best way to lower people's cost of living, rather than having the government make another payment.

The Brookings Institution, a left-leaning think tank, was also contacted by Planet Chronicle Digital for a more diverse perspective on Hochul's decision.

Planet Chronicle Digital contacted Hochul's office for comment but did not receive a reply by deadline.