Illinois Considers Inflation Relief - How Much Will it Help?
Inflation relief is something that the state of Illinois is considering, but how much can it really help? Inflation is at an all-time high and the price of goods and services is skyrocketing. In fact, last month, the consumer price index reached a 40-year high. This increase is largely due to supply-chain disruptions. Inflation relief is not going to solve this problem, but it can help alleviate the pain of cash-strapped residents.Indexing capital gains to inflation would increase the size of the economy in the long run by 0.11 percent, or $22 billion in 2018. It would lower the service cost of capital and increase incentives to invest in the United States. It would also increase the capital stock by 0.26 percent and lead to a 0.08 percent increase in wages. But if it were implemented, it would require congressional approval, but if it's enacted, it would help the economy in the long run.
