Critics of this measure are arguing that giving people free money will only keep inflation higher for longer.

One such state is California, where Gov. Gavin Newsom just announced that some 23 million of its 39 million inhabitants will receive checks of up to $1,050 as part of a $17 billion "inflation relief" spending package. This package includes rental assistance, suspension of the state sales tax on diesel and funding to help people pay for past-due utility bills. (Related: Federal Reserve may adopt "more restrictive" policies if inflation persists.)

"Cha-ching! You just received a deposit," wrote the governor's office in a June 30 statement announcing that Newsom had just signed the state's $308 billion budget, which, along with the money already earmarked for inflation relief, includes an additional $9.5 billion in tax rebates "to help address inflation."