Amid economic prosperity, an increasing number of Americans are battling food insecurity, with recent data revealing that 15.6% of U.S. adults lacked sufficient food sometime in May, almost double from 2021.
The United States, despite being an economic powerhouse, faces a growing challenge as more citizens struggle to afford basic necessities like food. This alarming trend has been brought to light by new findings from Morning Consult, reported by Axios, which show a significant rise in the number of U.S. adults experiencing food scarcity.
In May, 15.6% of adults in the U.S. reported they sometimes or often did not have enough to eat, marking a nearly 100% increase from two years ago. Back in 2021, expanded benefits such as the Supplemental Nutrition Assistance Program (SNAP) and an enhanced Child Tax Credit contributed to improving food access. However, the rollback of these supports has coincided with worsening food security for many.
John Leer, Chief Economist at Morning Consult, highlighted the widening gap between flourishing financial markets and the reality many Americans face daily. “There’s such a disconnect now between record highs on Wall Street and elevated levels of food insecurity,” Leer remarked in the report.
Philadelphia’s Share Food Program, a significant food bank network in the area, has observed a 120% surge in demand for food over the past three years. Program Director George Matysik noted that the need began rising as federal aid started decreasing in 2022. He expressed concern that the recent SNAP cuts approved by Congress could further exacerbate the situation. The Urban Institute’s research suggests that the reconciliation package could cause 22.3 million families to lose all or part of their SNAP benefits.
The spike in food insecurity accompanies a broader increase in living costs. Food prices, according to the Consumer Price Index, have climbed 26% over the last five years, with the USDA anticipating a further 2.9% rise in 2025. Inflation isn’t limited to groceries, affecting everything from rent to utilities and transportation, thereby eroding purchasing power for many households.
To combat rising costs, consumers are urged to be vigilant with their budgets. Reducing major expenses, such as car insurance, by comparing various options can help ease financial strains. Forbes reports the average cost of full-coverage auto insurance as $2,149 per year, though significant savings can be found by comparing quotes from different insurers.
Technological solutions like the Upside cash-back app provide additional avenues for savings, enabling users to earn cash-back on essential purchases like gas, groceries, and dining. Such strategies assist in managing the impact of inflation on household finances.
Investors concerned with protecting their assets from inflation often turn to traditional safeguards such as gold. Unlike fiat currency, gold cannot be produced in unlimited quantities and is viewed as a stable investment during economic uncertainties. Over the past year, gold prices have surged over 35%, emphasizing its value as an investment.
Financial expert Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, acknowledged gold’s role in a well-rounded investment portfolio, calling it an “effective diversifier” during economic downturns. Investors looking for tax advantages can consider opening a gold IRA through services like Priority Gold, which facilitate holding physical gold within retirement accounts.
Real estate also remains a popular hedge against inflation. As property values and rental incomes often rise with inflation, real estate investments can provide a reliable income stream. The S&P CoreLogic Case-Shiller U.S. National Home Price Index reports a more than 50% increase over the last five years, reflecting the sector’s resilience.
Crowdfunding platforms, such as Arrived, now offer easy access to the real estate market, allowing investors to purchase shares in rental properties with relatively small investments. Supported by high-profile investors like Jeff Bezos, Arrived simplifies the process by letting users select pre-vetted properties to invest in, offering an opportunity for income generation without the traditional burdens of property ownership.
This multifaceted approach to managing personal finances amid economic challenges provides a roadmap for maintaining stability and growth, even as larger structural inequities persist.
According to Axios, these revelations underline a critical disconnect between financial indices and the lived realities of millions of Americans grappling with basic needs.
Source: Original article