posted on October 20, 2007 07:58:31 PM new
Living Paycheck to Paycheck Gets Harder
Friday October 19, 10:46 pm ET
By Anne D'Innocenzio, AP Business Writer
AP IMPACT: America's Working Poor Stretching Paychecks to the Breaking Point
NEW YORK (AP) -- 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.
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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.
While economists debate whether the country is headed for a recession, some say the financial stress is already the worst since the last downturn at the start of this decade.
From Family Dollar to Wal-Mart, merchants have adjusted their product mix and pricing accordingly. Sales data show a marked and more prolonged drop in spending in the days before shoppers get their paychecks, when they buy only the barest essentials before splurging around payday.
"It's pretty pronounced," said Kiley Rawlins, a spokeswoman at Family Dollar. "It seems like to us, customers are running out of food products, paper towels sooner in the month."
Wal-Mart, the world's largest retailer, said the imbalance in spending before and after payday in July was the biggest it has ever seen, though the drop-off wasn't as steep in August.
And 7-Eleven says its grocery sales have jumped 12-13 percent over the past year, compared with only slight increases for non-necessities like gloves and toys. Shoppers can't afford to load up at the supermarket and are going to the most convenient places to buy emergency food items like milk and eggs.
"It even costs more to get the basics like soap and laundry detergent," said Michelle Grassia, who lives with her husband and three teenage children in the Bedford-Stuyvesant section of Brooklyn, N.Y.
Her husband's check from his job at a grocery store used to last four days. "Now, it lasts only two," she said.
To make up the difference, Grassia buys one gallon of milk a week instead of three. She sometimes skips breakfast and lunch to make sure there's enough food for her children. She cooks with a hot plate because gas is too expensive. And she depends more than ever on the bags of free vegetables and powdered milk from a local food pantry.
Grassia's story is neither new nor unique. With the fastest-rising food and energy prices since the 1980s, low-income consumers are stretching their budgets by eating cheap foods like peanut butter and pasta.
Industry analysts and some economists fear the strain will get worse as people are hit with higher home heating bills this winter and mortgage rates go up.
It's bad enough already for 85-year-old Dominica Hoffman.
She gets $1,400 a month in pension and Social Security from her days in the garment industry. After paying $500 in rent on an apartment in Pennsauken, N.J., and shelling out money for food, gas and other expenses, she's broke by the end of the month. She's had to cut fruits and vegetables from her grocery order -- and that's even with financial help from her children.
"Everything is up," she said.
Many consumers, particularly those making less than $30,000 a year, are cutting spending on nutritious food like milk and vegetables, and analysts fear they're further skimping on basic medical care and other critical services.
Coupon-clipping just isn't enough.
"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.
The pantry scrambled to feed 5,000 new families over the past 12 months, up almost 70 percent from 3,000 the year before.
"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."
In the past three months, Samuels has seen more clients in higher-paying jobs -- the $35,000 range -- line up for food.
The Regional Food Bank of Northeastern New York, which covers 23 counties in New York State, cited a 30 percent rise in visitors in the first nine months of this year, compared with 2006.
Maureen Schnellmann, senior director of food and nutrition programs at the American Red Cross Food Pantry in Boston, reported a 30 percent increase from January through August over last year.
Until a few months ago, Dellria Seales, a home care assistant, was just getting by living with her daughter, a hairdresser, and two grandchildren in a one-bedroom apartment for $750 a month. But a knee injury in January forced her to quit her job, leaving her at the mercy of Samuels' pantry because most of her daughter's $1,200 a month income goes to rent, energy and food costs.
"I need it. Without it, we wouldn't survive," Seales said as she picked up carrots and bananas.
John Vogel, a professor at Dartmouth College's Tuck School of Business, worries that the squeeze will lead to a less nutritious diet and inadequate medical or child care.
In the meantime, rising costs show no signs of abating.
Gas prices hit a record nationwide average of $3.23 per gallon in late May before receding a little, though prices are expected to soar again later this year. 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.
The average family of four is spending anywhere from $7 to $10 extra a week -- $40 more a month -- on groceries alone, compared to a year ago, according to retail consultant Burt Flickinger III.
And while overall wage growth is a solid 4.1 percent over the past 12 months, economists say the increases are mostly for the top earners.
Retailers started noticing the strain in late spring and early summer as they were monitoring the spending around the paycheck cycle.
Wal-Mart and Family Dollar key on the first week of the month, when government checks like Social Security and public assistance generally hit consumers' mailboxes.
7-Eleven, whose customers are more diverse, looks at paycheck cycles in
posted on October 21, 2007 01:01:03 PM new
You all know where I stand on helping the poor. But I must say, scanning people's full shopping carts when in line at the cash register, I see awfully disturbing things. Carts full of junk food, candy, doughnuts, frozen dinners, etc.
I wish there were a systematic way to teach people who have to stretch their dollars how to resist temptation at the store, refuse to buy crappy toys for their kids, and (novel idea) cook simple meals at home.
I know I'm sounding harsh and I don't mean to, but sometimes I want to ask those people what they're thinking. (Many if not most of them are grossly overweight, as well.)
_____________________
From Ellen Goodman on the coming Supreme Court case re lethal injection:
...as the Supreme Court takes up this issue again, I remember what Justice Harry Blackmun said after a 20-year struggle about just ways to administer the death penalty: "From this day forward, I no longer shall tinker with the machinery of death."
We are still tinkering. This time, we're tinkering with the dosage and the training. Tinkering with competence and mistakes. We are tinkering, tinkering, tinkering to avoid the possibility that we can't have our death penalty and our humanity, too.
...as the Supreme Court takes up this issue again, I remember what Justice Harry Blackmun said after a 20-year struggle about just ways to administer the death penalty: "From this day forward, I no longer shall tinker with the machinery of death."
We are still tinkering. This time, we're tinkering with the dosage and the training. Tinkering with competence and mistakes. We are tinkering, tinkering, tinkering to avoid the possibility that we can't have our death penalty and our humanity, too.
posted on October 21, 2007 04:30:26 PM new
I agree,I often found obese or fat people buying junk food ,but thats their craving.
Food is still cheap and good in this country,but first you must know how to shop and then know how to cook.
posted on October 22, 2007 07:21:31 AM new
Have you tried shopping for milat at Walgreen's or the drug stores in your area. Near me the milk is usually cheaper there than it is at the grocery stores.
"In my experience, those who do not like you fall into two categories: the stupid, and the envious. - John Wilmot, the Second Earl of Rochester
There is something that I find offensive about perusing the shopping carts of welfare recipients and finding fault with them.
I agree with Zoomin that the answer is education in nutrition and food preparation skills for every child in school...It's certainly not the case that only poor people make unhealthy and unthrifty choices in the grocery store.
posted on October 22, 2007 10:06:22 AM new
Helen: I really don't "peruse" the shopping carts of poor people on purpose; but I can't help noticing the stuff in the cart right behind me or ahead of me.
I know that many starchy foods are much cheaper than protein or fresh vegs. and fruit; I also know that some poorer areas don't have good grocery stores, which is a shame.
And, yes, I've seen junk food in carts of people who appear to be able to afford any kind of food.
In our town, the men are the worst! We have a lot of guys brought up to work for contractors, and for their lunches, even at our little supermarkets, they have a choice of cooked meats like chicken and beef, fruit, etc., but they grab some junky stuff plus a regular Coke.
In our culture, women are the ones who've been educated through our magazines etc. about diet and nutrition. Try finding that stuff, with recipes, in most men's magazines!
_____________________
"Grocery shopping in 7-11 will put you in the poorhouse fast! They have good coffee, though."
Just be sure you enjoy that good coffee during daylight hours.... Working in convenience stores at night has been called one of the most dangerous jobs in the U.S.
posted on October 22, 2007 10:24:11 AM new
I would think men go for animal protein ,how can you do man work on beans and mashed potato?
Prof,
I consider food is still cheap in this country,you can get trimmed pork or beef or chicken for a few dollars and it is enough to feed a family .
A jumbo rotisserie chicken at Kroeger if you go late in the evening is marked down to 5 dollars,and thats enough for the whole family .
My Syrian hairdresser just came back from Damascus,he paid 22 dollars for a cup of expresso for himself and a regular cup of coffee for his wife and he no longer is used to the mutton flavor lamb versus our toned down lamb in Syria.
But then I just feed myself and I have plenty of time to compare shop and prepare my own meals.
*
Lets all stop whining !
*
posted on October 22, 2007 10:26:30 AM new
One question-how many of you live close to a 99 cents only store?
They have milk,egg,fresh pepper and lettuce and banana ,coldcut and cookies,cake mix,canned goods ,all for 99 cents.
I have seen 5 gallons apple sauce going for 99 cents.
But then I dont know how fresh they are,I guess you have to drink your milk pretty soon .
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Lets all stop whining !
*
posted on October 22, 2007 06:33:58 PM new
Don't worry about junk food consumption, evolution will ensure we thrive on it, in due time. Eskimos do just fine on a diet virtually devoid of fruits and vegetables!
posted on October 23, 2007 07:21:47 AM new
logansdad:
Milk at my walgreens/cvs is only about 20 cents cheaper ~ the extra stop doesn't make it worthwhile, especially since it is not ALWAYS cheaper. If I'm there for something else, I usually pick up a gallon (four kids, we can never have too much milk!)
hwahwa:
no Kroeger's here, Publix for the most part, a few Winn Dixies and Albertsons but most of them have closed in this area (South Florida).
Publix rotisserie chickens are $7.99, they don't mark them down, and there is no way they feed more than two or three people (what is a 'jumbo' chicken?)
We had a few "99 cent stuff" stores ~ they were GREAT! Fresh fruits and veggies ~ even fresh cut flowers for 99 cents (where can you find a dozen mini roses for mothers day for under a buck!!)
The chain seems to have grown too fast ~ product quality went waaay down, lotsa empty shelves, then most of the locations closed (not sure if the closings happened elsewhere ~ it seemed geared for succcess until they opened so many stores!)
Fresh fruits and vegetables are expensive here, I am not surprised when the shopping carts of welfare recipients are full of pasta and peanut butter ~ the carbs are filling and the peanut butter has protein. They both have a long shelf life.
Fruits and veggies cost $$ and are perishable.
Why not sell pre-packaged healthy meals ~ simple to make yourself and food stamp eligible? People are more productive on healthy diets ~ could be a step in the right direction for many of these welfare recipients.
posted on October 23, 2007 11:06:23 AM new
Zoomin, milk is not $4 a gallon by me yet but I have found milk to be cheaper at most places besides the actually grocery store. The only time milk is cheaper at the grocery store was when they had a sale buy 2 gallons for $6.00. I barely finish one gallon before it goes bad, what the heck would I do with two.
I have also seen milk cheaper at places like Sam's club or Costco. If you do not go to these places already it wont do you any good.
"In my experience, those who do not like you fall into two categories: the stupid, and the envious. - John Wilmot, the Second Earl of Rochester
posted on October 23, 2007 05:58:13 PM new
Prof
Read my post,my Syrian hairdresser pay 22 dollars for one cup of expresso for himself and one cup of coffee for his wife.
You will be an idiot if you dont buy something for your wife!
As for milk,you can get dry milk at Costco.
You can also get carnation milk and dilute it.
Kroger has rotisserie 'COLOSSAL' chicken,they call it colossal because it is bigger than your average rotisserie chicken. And it should feed a family of four!
I bought JEnnie O roast turkey breast from them last Saturday for 7.99 and I still have a lot left.
We all eat too much,eating less is not going to kill us,besides most of us dont do much anyway !
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Lets all stop whining !
*
posted on October 23, 2007 08:41:48 PM new
I read your post hwahwa, 22 dollars for one OR two cups of coffee, the man's an idiot and besides, I sincerely doubt that has any relationship to what a resident of Damascus pays for a cup of coffee on the street. Furthermore, it doesn't say anything about the price of groceries in Syria, or anywhere else. Grocery prices in this country are going up all the time. Is it necessary to pay them? Not necessarily, but most people are not in a postition where they can drive all over town looking for the best deals. Not everyone is single with the time to spend in pursuit of cheap food.
I don't buy dairy products or meat, with the exception of some specialty cheeses that I can't make and don't want to live without, and I almost never buy bread products. When I look at the prices in the grocery store I feel plenty sorry for those who have to.
22 dollars for two cups of coffee is lunacy in any country. Bad example. Try again.
posted on October 24, 2007 12:24:31 AM new
Profe, a new café opened in Vancouver and coffee there is $15 a cup and $135 for a lb bag - one of the most expensive worldwide they said.
I thought about you the other day - I'm in the midst of selling my house and buying something else so life is hectic. We had a weak moment and melted Kraft cheese slices over our hamburgers and I tried not to remember what you said about them. Yum Yum
posted on October 24, 2007 05:27:15 AM new
I don't doubt those prices are reall kiara, a fool and his money are soon parted. They just don't represent what NORMAL people are paying for a cuppa joe. You can pay a hundred bucks a pound for Kobe beef too.
As for that Kraft cheese-like substance, whatever you paid was WAY too much.
posted on October 24, 2007 09:47:54 AM new
Prof,
are you really a prof?
read what I wrote-
My Syrian hairdresser just came back from Damascus,he paid 22 dollars for a cup of expresso for himself and a regular cup of coffee for his wife ///////
You have a good point,local people are sure not paying 22 dollars for expresso and regular,tourists do in tourist area ,but then what is included in that 22 dollars-a clean cafe with good views in upscale area catered to tourists,no beggars and no street peddlers and nice decor ,sooothing music ,clean restroom,courteous waiters.
Not to mention the cup and saucer used in serving are sanitised.
Lets not forget the bragging rights-that you have been to the trendiest part of town and have a cup of coffee at the most expensive cafe!After all,he has not been back home for 20 years,his relatives and friends expect him to be strewn with gold by now .
You get what you pay for!
*
Lets all stop whining !
*
[ edited by hwahwa on Oct 24, 2007 09:50 AM ]
posted on October 24, 2007 07:57:59 PM new
Grocery Outlet franchises are a wonderful way to save on groceries. I usually save a realistic 50% on food purchased there, although I have to drive to a suburb. An extra plus, some products not sold through the regular local food distribution channels are available. Minuses: you can't buy all items on your list from Grocery Outlet.
Many well-known brands have a primary market, which they sell in full-price grocery stores, and a secondary market, which they sell in in discounted grocery stores. Some brands (like Foster Farms chicken) change their brand name. Others, like Kraft, may label their products "May not meet labeling standards". Nonsense! These are not expired products and are identical to the products we pay twice as much for.
I also shop at Trader Joe's, they generally sell under their own brand name, have good products at reasonable prices.
posted on October 27, 2007 03:04:53 PM new
hwahwa, Yes I'm a prof and yes I read your post. Please forgive my gross exaggeration of 22 dollars for one cup of coffee. How very much more economical it turns out to be when it's actually for two cups. Silly me. Here, let me rephrase my original statement on that basis.
Anyone who pays 22 dollars for two cups of coffee is an idiot.
posted on October 28, 2007 05:57:46 AM new
Hwahwa, In addition to the aesthetically pleasing atmosphere that comes with that $22 price you should mention that both cream and sugar is included... a combination irresistable to idiots!
posted on October 28, 2007 08:17:22 AM new
Helen and Profe, I've been on the road lots lately still looking for a house and may have to leave again today. The other night we were tired and hungry and stopped at an A&W and I thought of you guys when I saw the melted krap cheese slice on my teenburger. A short while ago I wouldn't even consider eating take-out or fast food yet it tasted really good - amazing how my morals have slipped so quickly.
