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  • SATURDAY OCTOBER 20 2007 4:00 PM

Feeling Poorer? Paycheck Not Lasting as Long? You're Not Alone.



Why are people with annual salaries of $35,000 lining up at food banks? Why are more consumers cutting down on nutritious foods like milk and vegetables, and buying more of their "groceries" at 7-Eleven, rather than the supermarket? Why, when "overall" wage growth is a solid 4.1 percent over the past 12 months? According to economists, it's because that "overall" wage growth is mostly happening for "top earners," while people who make less than $30,000 a year (and in some places, more than that) are having a tough time keeping up with rising rent, food, and energy costs.

The calculus of living paycheck to paycheck in America is getting harder. What used to last four days might last half that long now. Pay the gas bill, but skip breakfast. Eat less for lunch so the kids can have a healthy dinner.

Across the nation, Americans are increasingly unable to stretch their dollars to the next payday as they juggle higher rent, food and energy bills. It's starting to affect middle-income working families as well as the poor, and has reached the point of affecting day-to-day calculations of merchants like Wal-Mart Stores Inc., 7-Eleven Inc. and Family Dollar Stores Inc.

Food pantries, which distribute foodstuffs to the needy, are reporting severe shortages and reduced government funding at the very time that they are seeing a surge of new people seeking their help.

Grocery sales at 7-Eleven have surged between 12 and 13 percent in the last year, in response to steadily rising food costs, and the average family of four is spending about $40 more each month on grocery basics than they spent last year. They're also abandoning healthier foods for cheap, filling stuff like peanut butter, pasta, and hamburger meat.

Food costs have increased 4.5 percent over the past 12 months, partly because of higher fuel costs. Egg prices were 44 percent higher, while milk was up 21.3 percent over the past 12 months to nearly $4 a gallon, according to the Bureau of Labor Statistics.

Food banks are already finding themselves overrun by increased demand. One food pantry in Brooklyn has recorded an almost 70 percent increase from last year: 5,000 new families, on top of the previous 3,000.

"The reality of hunger is right here," said the Rev. Melony Samuels, director of The BedStuy Campaign against Hunger, a church-affiliated food pantry in Brooklyn.

"I am shocked to see such numbers," Samuels said, "and I am really concerned that this is just the beginning of what we are going to see."

If there's any silver lining around this ominous, dark cloud, it's that some of these food pantries are getting creative.

Samuels said her church, Full Gospel Tabernacle of Faith, just started offering free cooking classes to teach clients who are diabetic or have other health conditions how to prepare vegetables like squash. It's also offering free exercise classes.

"We are trying to make them health conscious," Samuels said. "It's not right to give them just anything. Our mantra is eat well and live well."

If you squint, you can almost kind of see it.

 

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Comments
Twelve

Twelve

Bay City, MI
April 2007

OCT 20, 2007 04:38 PM

That's fucking great.
I started cooking my own food long ago to keep costs down, and it's just getting harder and harder.

joenobody

joenobody

I'm lost
December 2004

OCT 20, 2007 04:40 PM

this was a good article. it actually reported on something newsworthy, that's relevant to most americans, and this is a subject that's not really reported on that much.

Formus

Formus

Milwaukee, WI
May 2007

OCT 20, 2007 04:41 PM

It's like that stupid question, "Why is America so obese?" It's because junk food is cheaper than health food, and there are 50 million+ poor people to buy it.

NoPantsDave

NoPantsDave

Cincinnati, OH
OLD SKOOL

OCT 20, 2007 04:43 PM

Shopping at places like 7-11 for groceries seems a bit counterproductive to me. They usually jack the prices up a bit. Seems like you could have more money to spend on food if you shopped at the least expensive place rather than the most convenient.

Gillionaire

Gillionaire

Manchester, NH
February 2007

OCT 20, 2007 04:44 PM

I know I make roughly 25,000 a year and if I didn't live with three other people, I'd still be stuck living with my parents. I just can't afford the nessecities otherwise.

MrStitches

MrStitches

Brooklyn, NY
November 2003

OCT 20, 2007 04:53 PM

NoPantsDave said:
Shopping at places like 7-11 for groceries seems a bit counterproductive to me. They usually jack the prices up a bit. Seems like you could have more money to spend on food if you shopped at the least expensive place rather than the most convenient.



Yeah, groceries are really expensive there. I don't get that at all.

emperorreagan

emperorreagan

Baltimore, MD
January 2004

OCT 20, 2007 05:12 PM

NoPantsDave said:
Shopping at places like 7-11 for groceries seems a bit counterproductive to me. They usually jack the prices up a bit. Seems like you could have more money to spend on food if you shopped at the least expensive place rather than the most convenient.



Yeah, there's no worst choice if you're having financial problems than walking into a 7-11.

I think it might be a matter of people's perceptions that drive them to convenience stores - i.e., it doesn't seem like you're shelling out a lot of money if you pay a dollar or two for a hot pocket or a hot dog, but if you do the math you're doing poorly in comparison to what you could buy at a regular grocery store for the exact same thing.

Syntropia

Syntropia

Oakland, CA
February 2004

OCT 20, 2007 05:12 PM

Another symptom of how this economy is fast going down the shitter. Inflation... just a myth right?
whatever

Adroitbeing

Adroitbeing

I'm lost
September 2003

OCT 20, 2007 05:13 PM

NoPantsDave said:
Shopping at places like 7-11 for groceries seems a bit counterproductive to me. They usually jack the prices up a bit. Seems like you could have more money to spend on food if you shopped at the least expensive place rather than the most convenient.



This is the snapshot of cash flow. You can save money buying at Costco, but poorer people can't afford the effect on their cash flow since they must also pay for utilities, transportation, etc.

Convenience stores offer a limited selection of specific higher margin products at a single transaction price that appears to help with cash flow; that is to say, less short term cash is required for the transaction..

FistFuck

FistFuck

HOPEFUL

USA

OCT 20, 2007 06:01 PM

I know i barely make it paycheck to paycheck.... its not just the rising cost of rent, food, and electricity but childcare and gas... its crazy. I make just under 30,000 and im a single parent of 2 kids. I usually have to get help from my boyfriend or my dad to make ends meet... and on top of that im a college graduate with my BA. Starting next month i have to start paying back my student loans... whoopee!

Maybe if i actually got child support i wouldnt be so stressed that ive been sick for the past 6 months.

sorry... bad day... had to vent.

Amagi82

Amagi82

Farmington, MI
October 2006

OCT 20, 2007 07:18 PM

I make around $30k a year and live on about 15 or 20% of my income. A good 80+% of things people spend money on are unnecessary. Healthy food is really not that expensive if you don't go nuts- a lot of the packaged and processed crap is far more pricey. I may be the cheapest person that lives, but it works for me- I eat healthy, I don't eat fast food, I don't drink soft drinks, I don't smoke, I don't use drugs, I drive a car that gets 40mpg, I don't spend money on status or frivolous crap... it's not hard to save money when you get over the whole status thing. If you need new clothes, don't go to the store that sells a friggin' t-shirt for $30, go to the Salvation Army and buy an entire wardrobe for ten bucks. If you want something expensive, save up and pay cash for it. This whole idiotic instant-gratification debt-society we have going here in America is a financial death wish.

That said, it sickens me how fast inflation is going up without any corresponding raise in American paychecks.

StarBelliedBoy

StarBelliedBoy

Philadelphia, PA
December 2003

OCT 20, 2007 07:28 PM

MrStitches said:

NoPantsDave said:
Shopping at places like 7-11 for groceries seems a bit counterproductive to me. They usually jack the prices up a bit. Seems like you could have more money to spend on food if you shopped at the least expensive place rather than the most convenient.



Yeah, groceries are really expensive there. I don't get that at all.



People are lazy and don't know how to manage their money. QUANDARY UNCOVERED. If you are shopping regularly for staples at a convenience store, you're pretty much retarded and it's not surprising you don't know how to live on 35 k a year. You are obviously not smart enough to know that you pay extra for the convenience store. If that were not the case, they would just call it a plain ol' store. Might I also suggest that people tend to think that having children is a god-given right, whether they can afford to take care of them or not. If you are somehow caught in between being shit poor (so the government will pitch in) and self-sufficient, you are exactly the person who needs to think hardest about where the money to take care of that kid is going to come from.

Himes

Himes

Brooklyn, NY
October 2006

OCT 20, 2007 07:48 PM

I've been living off pasta and homemade sauces from about three months now. I'm not in any particular hardship.

but then again,

I'm a single man who shares a house with 4 other people. Other than feeding my face and making sure I don't get sick - there really isn't much else to take care of.


It's the people with families that get the short end of the stick.

And by the way - it's one thing to chastise someone for having kids in an "inopportune" tax bracket.

it's another thing to actually try to help or educate them. I'm all for venting about the system. But those of us that have time to think, vote, influence, and volunteer to help such familes - should do so.

Honestly struggling parents KNOW that they are struggling - it's not as if they spend all their cash on dumb shit and wonder why the kids are out of diapers. Remember there are concrete systems in place in our country to keep poor people poor and wealthy people wealthy.

One example - Walmart did not become a multi-billion corporation by selling shit to wealthy Americans.

You do the math

meanwhile - i'm going to make sure I didn't forget any bills.

redheadedleague

redheadedleague

Pinole, CA
September 2003

OCT 20, 2007 08:37 PM

I'm seeing it everywhere, yet almost no elected official will talk about it, because they don't want to be accused of "class warfare." Personally, I'm rapidly coming to the point where I think we could use a little class warfare. The great bargain with the middle class has been broken, and the upper 1% are running away with 90% of the wealth growth. If this country's economy continues to decay, it won't be them left holding the bag, it will be the rest of us.

darkcharge

darkcharge

Portland, OR
June 2006

OCT 20, 2007 08:43 PM

I should make bumper stickers that say "Let 'em eat cake"

AND

I should sell red hats and bandannas! smile

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