[cortesoft]

This would be the case if the X dollars were being printed from scratch every time they were distributed. They aren't, though; they are coming from tax dollars.

Yes, it would most likely cause some inflation of consumer goods, since poor people spend more of their money on consumer goods than rich people (so when you transfer wealth from the rich to the poor, consumer goods will become more expensive)

This increase in consumer good prices, however, will also cause more resources to go into producing goods for poor people (who suddenly aren't so poor anymore). Depending on the limiting factors for these consumer goods, this will most likely cause prices to stabilize at a reasonable place.