Poverty and a Growing Number of Americans Receiving Food Stamps
The meltdown of the U.S. housing market and economy, coupled with the reckless printing of U.S. currency, will eventually result in higher inflation and hit the U.S. economy and consumer hard. The average American’s bank account is already stretched, as Americans are paying more for basic necessities.
Unfortunately, personal incomes are not rising in step with higher prices for goods and services. To deal with inflation and higher prices, Americans will need more money to buy essential goods, but with the state of the U.S. economy, an increase in wages is not on the table.
In 2011, the median household income in the U.S. fell for the fourth straight year to $50,054, or 8.9% below its all-time peak of $54,932 in 1999. The country’s poverty rate was 15%—that’s 46.2 million people under the poverty line.18 All told, one-third of the nation is at or below the poverty line.
There are also an increasing number of Americans receiving food stamps. Nearly 47.0 million Americans rely on federal food-assistance benefits—a 12-year high attributed to the weak U.S. economy and high rates of unemployment over the last five years.19
Since January 2009, a net 194,000 new jobs have been created; during that same time, 14.7 million people have been added to the food-stamp rolls.
© Lombardi Financial 2012; Data source: www.weeklystandard.com
For every person added to jobs rolls since January 2009, 75 people have been added to the food-stamp rolls. Or, put another way, since January 2009, food-stamp growth is 75 times greater than job creation.20
Post-recession economic growth in 2010 was 2.4%, and it dropped in 2011 to 1.8%. In 2012, it dropped again to 1.77%. Few, if any, net jobs will be created with growth of less than two percent.
In 2013, this translates into an even greater shrinking of the American middle class and more people teetering on the brink of poverty.