What Will You Do When Inflation Forces US Households to Spend 40% of Their Incomes on Food?
The comments below are an edited and abridged synopsis of an article by Michael Snyder
Food prices are rising dramatically, and experts are warning that this is just the beginning. But if you think food prices are bad now, just wait, because they are going to get a whole lot worse.
Typically, Americans spend approximately 10% (Canada: approximately 15%) of their disposable personal incomes on food. The poorest US households spent an average of 36% of their disposable personal incomes on food in 2019.
The final numbers for 2020 will be higher, and eventually the percentage of disposable personal income that the average US household spends on food will likely reach 40%.
At one time that would have been unimaginable, but now everything is changing. The price of corn has increased 142% since this time last year.
In other areas there is more moderate inflation, but overall the US had the largest increase in food inflation in almost nine years.
Meanwhile, the price of lumber continues to shoot higher, and real estate prices are going through the roof.
This is what the beginning stages of hyperinflation look like, but Fed officials insist that there is nothing to be concerned about.
Almost everybody loved it when the federal government started sending out big, fat stimulus cheques, but that will change when a shopping cart of food costs you $400 at the grocery store.
Whenever the government hands out free money, someone has to pay for it, and one way is through higher prices.
If you don’t believe this is a major national crisis yet, you will soon, because it won’t be long before Americans (and Canadians) are complaining about how nightmarish inflation has become.