Finance

Could this surprising new cost justify more stimulus money?

A customer examines a carton of eggs in a grocery store.

Image source: Getty Images

More stimulus money may be needed to help out for one simple reason.


Key points

  • The price of basic products has increased dramatically.
  • The government has previously proposed laws to help people afford essentials.
  • Could it be that more stimulus money is on the way?

Americans have been facing constant financial stress for years.

First, the COVID-19 pandemic shut down the economy and required the federal government to deposit money directly into people’s bank accounts to help pay their bills. Then, as a vaccine emerged and the health problems associated with the pandemic began to subside, inflation reared its ugly head and Americans were left paying much more for gas and groceries.

Now, there’s another huge price hike for a household staple that everyone is talking about. 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 facing is for an item that almost 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 probably noticed – the price has gone up dramatically. In fact, as of December 2022, the average price of a dozen large Grade A eggs has reached $4.25 in US cities. This is more than double the price of a carton of eggs compared to a year ago.

The most likely reason for this dramatic increase in egg costs is the death of close to 58 million chickens and turkeys as a result of the bird flu epidemic that was first identified back in 2020.

Inflationary pressures are also contributing to high egg prices, as costs associated with producing and selling eggs — such as buying feed — have also risen.

Can this justify more incentive money?

Rising egg prices alone are unlikely to prompt the federal government to offer more financial relief — although some lawmakers in Washington have in the past proposed stimulus bills targeting specific cost increases, including a bill designed to address rising gas prices.

Some cities and states, however, could be spurred into action by rising grocery costs — and a big jump in egg prices is helping to drive the trend. A number of states have already provided payments to ease inflation, and some locations have specifically abolished taxes on everyday items.

Since food makes up a large part of many people’s monthly spending, when the price of staples – like eggs – goes up, it affects both household budgets and the economy as a whole. If the price of eggs and other food items continues to rise rather than fall, it is highly likely that more states will begin to take steps to offer financial assistance to consumers before these unexpected costs cause a slump in demand that leads to a recession.

Warning: The biggest cashback card we’ve seen now has 0% introductory APRs through 2024.

If you use the wrong credit or debit card, it could cost you seriously. Our expert loves this top pick, which has an introductory APR of 0% until 2024, an insane cash back rate of up to 5%, and all with somehow no annual fee.

In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and sign up in just 2 minutes.

Read our free review

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button