More Americans Can't Afford Food

An article in The Huffington Post by Alexander Eichler reveals a disturbing statistic. More Americans are struggling to afford basic necessities, including food. A report from the Food Research and Action Center said that more Americans struggled to buy food in 2011 than in any other year of the financial crisis. 18.6 percent of people reported that they couldn’t always afford to feed their whole family in 2011.

Despite the economic recovery, incomes for many Americans have failed to keep pace with the cost of living. According to the Census Bureau, 46 million people lived below the poverty line in 2010, a record number that some estimates project is actually much higher. Another study done by Wider Opportunities for Women found that 45% of people have reported not being able to cover their basic living expenses, including food, shelter, and transportation.

Even though the official poverty rate is about 15%, over two-fifths of Americans are unable to save adequate amounts. One financial emergency is all it would take to push them into poverty.

Financial insecurity is being felt all the way down to the level of everyday spending. The Center for Housing Policy recently found that a growing number of middle income owners and renters are paying more than half their earnings just for a place to live.

As a result, people are sacrificing in other areas. A report published recently by the Employee Benefit Research Institute found that in 2009, one in five Americans over 50 years old were skipping doctor visits, switching to cheaper medications, or forgoing medicines entirely out of financial necessity.

It is concerning that so many Americans are having to sacrifice basic necessities. As hunger is becoming more widespread across America, it is important to realize that the entire country ends up paying one way or another. While the people who can not afford food suffer the most, the social costs incurred are great. It is estimated that social costs- from money spent to operate food pantries to the diminished earning power of impoverished children- come to about $167  billion a year, or $542 for every man, woman, and child in the country.

These are eye opening statistics. They serve as a powerful reminder of how important it is to promote financial security through saving and asset building.

To read the article “Growing Number of Americans Can’t Afford Food, Study Finds”, click here.