Food Prices Skyrocket as Charities Feed 46 Million Americans

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Food Prices Skyrocket as Charities Feed 46 Million Americans

The Bureau of Labor Statistics (bls) reported in July that the average price of ground beef has risen to an all-time high. Over the last five years ground beef prices have risen a staggering 81 percent. Americans now pay $3.884 per pound compared to $2.147 in July 2009. Droughts in Oklahoma and Texas have contributed to the rising prices.

Ground beef is not the only food commodity experiencing a price hike. Severe drought in California—which produces nearly half the nation’s fresh fruit and vegetables—is affecting the price of fruit, eggs and dairy. Since July 2013, the cost of meat has risen 9.3 percent, fruits and vegetables 2 percent, and dairy prices have increased 4.3 percent.

“[T]he direction of food prices is somewhat worrisome. Lower and middle income households are likely to be paying a larger percentage of their paychecks for grocery bills,” Chris G. Christopher, director of consumer economics at ihs Global Insight, said. “The rise of food prices makes it more difficult for many American households—especially those households that live paycheck to paycheck.”

A report released by the United States Conference of Mayors, which represents cities with populations of 30,000 or more, stated that the average annual salary in the construction and manufacturing sectors was down 23 percent from 2008. Prior to the 2008 recession, an average salary was $61,637. The same job pays only $47,171.

According to the bls, 209,000 jobs were created in July, the sixth straight month the economy has added at least 200,000 jobs. While positive, the job growth may mask the true weakness in the economy. Much of the job growth has occurred in the low-wage category sectors, such as leisure and hospitality.

The price of beef has risen by 81 percent. Americans now have to pay $3.884 per pound compared to $2.147 in July 2009.
Additionally, rising food costs and lower incomes are pummeling middle- and lower-class American.

“I’d rather make a roast with potatoes in the Crock-Pot. My kids like to eat healthy,” Jill Taormina of Ohio told the Huffington Post. “But the price of meat and produce is outrageous.” Taormina, who has two teenage daughters, said, “I can only afford to spend about $100 a month on groceries. I coupon as much as I can, but it’s just not enough.”

Mary Smallenburg of Virginia started crying when she received a food package from her mother, which enabled her to feed her four children.

“It got to the point where I opened my pantry and there was nothing. Nothing. What was I going to feed my kids?” Smallenburg asks.

Unfortunately, these are not isolated cases. A recent report titled “Hunger in America 2014,” released by Feeding America, revealed that 46 million Americans relied on charities for food in the past year. That means one in seven Americans cannot afford to feed themselves.

Another report stated that 25 percent of U.S. military personnel also relies on food charities.

With food prices soaring and well-paying jobs increasingly scarce, America is in for more economic troubles.

To learn how you can stabilize your own household budget, read Solve Your Money Troubles and The Financial Law You Can’t Afford to Ignore.