It is a near certainty that this year will be a costly one for tens of millions of Americans.

Many financial experts contend that the current high-inflationary environment—which has surged to a nearly four-decade high—will likely continue to cause even more pain over the next twelve months.

In a statement following the Labor Department’s January release of the Consumer Price Index, President Joe Biden said that “this report underscores that we still have more work to do, with price increases still too high and squeezing family budgets.”

Biden’s statement also said that “inflation is a global challenge, appearing in virtually every developed nation as it emerges from the pandemic economic slump. America is fortunate that we have one of the fastest-growing economies.”

Assistance Via Direct Payments

However, some experts suggest that expansive economic growth and prosperity could be harder to come by in larger cities like Philadelphia that have relatively high poverty rates. With this in mind, they believe the most efficient way to help struggling low-income families is for Congress to quickly approve another round of stimulus checks.

“As the economic recovery beats on, it’s time for local policymakers to address new and unforeseen challenges in 2022. First and foremost: Philadelphians are contending with the highest inflation in decades,” Matthew Jeffrey Vegari, an economics researcher who previously worked for the city of Philadelphia as a policy associate, wrote in an op-ed for The Philadelphia Inquirer earlier this week.

“While there are few levers to pull to dampen prices on a local level, policymakers should consider taking a page out of the federal playbook to address the needs of struggling households: They should issue stimulus checks … (which have) allowed households to buy necessary items, pay down debt, save, and invest,” he wrote.

Vegari also said that following the passage of Biden’s $1.9 trillion American Rescue Plan (ARP) last spring, census data revealed a sizable drop in food insecurity for 160,000 adults in the greater Philadelphia region.

“Unfortunately, food insecurity has risen steadily in recent months and now nears pre-ARP levels,” he said. “Moreover, the lapse in the ARP’s enhanced monthly child tax credit means that Philadelphians won’t receive additional aid until tax time. … Consequently, well-targeted stimulus checks to those most in need would compensate for the child tax credit’s lapse (the average monthly credit in Pennsylvania was $424) and help ease the burden of surging prices.”

Only Exacerbate Inflation?

Vegari also addressed the belief that tapping into more federal resources will only worsen current high-inflationary pressures.

“Traditional theory suggests throwing money at an inflation problem might only exacerbate inflation; however, one-time, targeted benefits are unlikely to meaningfully impact prices, whose stressors have more to do with national and international factors than regional ones,” he claimed.

“Stimulus checks are not a permanent policy solution, nor would they be permanently advisable given budgetary constraints. But they are a swift way to bring relief to those who need it most,” he concluded.

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.