More stimulus money may be needed to help for one simple reason.
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Americans have been coping with ongoing financial stress for years.
First the COVID-19 pandemic shut down the economy and necessitated the federal government deposit money directly into people’s bank accounts to help them pay the bills. Then, as the vaccine rolled out and pandemic-related health concerns began to wane, inflation reared its ugly head and Americans were left paying much more for gas and groceries.
Now, there’s another huge price increase for a household staple that has everyone talking. And the big question is, could more stimulus money be justified because of it?
This huge price increase is hitting household budgets
The latest price increase Americans are coping with is on an item nearly everyone has to buy regularly: Eggs.
Even if you don’t eat eggs for breakfast, eggs are in a huge number of items from baked goods to dinner dishes and more. And, you’ve probably noticed — the price has increased dramatically. In fact, as of December 2022, the average cost of a dozen large Grade A eggs reached $4.25 in U.S. cities. This is more than double the cost of a carton of eggs compared with one year prior.
The most likely reason for this dramatic increase in egg costs is the death of close to 58 million chicken and turkeys as a result of an avian influenza epidemic that was first identified back in 2020.
Inflationary pressure is also contributing to the high egg prices, as the costs associated with producing and selling eggs — such as buying animal feed — have increased as well.
Could this justify more stimulus money?
It is unlikely that rising egg prices alone will prompt the federal government to offer more financial relief — although some lawmakers in Washington, D.C. have proposed stimulus bills targeting specific cost increases in the past, including proposed legislation designed to deal with rising gas prices.
Individual cities and states, however, could be spurred to action because of the increasing costs of groceries — and the big bump in egg prices is helping to drive this trend. A number of states have already provided inflation-relief payments, with some locations specifically waiving taxes on everyday essentials.
Since food accounts for a big portion of many people’s monthly spending, when the price of staples — like eggs — goes up, this has an impact on both household budgets and the economy as a whole. If the cost of eggs and other food items continues to rise rather than decline, odds are more states will begin to take steps to offer consumers financial relief before these unexpected expenses cause a drop in demand that leads to recession.
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