The Fort Worth Press - US households become increasingly strained in diverging economy

USD -
AED 3.6725
AFN 66.000245
ALL 81.82833
AMD 362.253747
ANG 1.790365
AOA 916.999684
ARS 1524.826029
AUD 1.441057
AWG 1.8025
AZN 1.702147
BAM 1.739471
BBD 2.012612
BDT 122.851565
BGN 1.683441
BHD 0.376674
BIF 3014.617269
BMD 1
BND 1.278867
BOB 12.006155
BRL 5.213901
BSD 0.99928
BTN 96.807044
BWP 13.814757
BYN 3.009846
BYR 19600
BZD 2.009677
CAD 1.42822
CDF 2310.000111
CHF 0.830425
CLF 0.024807
CLP 979.509947
CNY 6.70455
CNH 6.709873
COP 3301.04
CRC 457.878797
CUC 1
CUP 23.981287
CVE 98.071304
CZK 21.820299
DJF 177.940248
DKK 6.67662
DOP 59.662995
DZD 133.636213
EGP 52.249599
ERN 15
ETB 163.212801
EUR 0.893302
FJD 2.253298
FKP 0.755263
GBP 0.75685
GEL 2.605028
GGP 0.755263
GHS 11.735826
GIP 0.755263
GMD 73.500677
GNF 8790.241169
GTQ 7.636412
GYD 209.021333
HKD 7.846735
HNL 26.827891
HRK 6.732202
HTG 130.85359
HUF 329.341501
IDR 17942
ILS 3.05195
IMP 0.755263
INR 96.243949
IQD 1309.040455
IRR 1746539.498985
ISK 122.570402
JEP 0.755263
JMD 158.196211
JOD 0.709022
JPY 157.779502
KES 129.890078
KGS 87.450144
KHR 4053.1526
KMF 438.000226
KPW 900.000318
KRW 1344.105006
KWD 0.30921
KYD 0.83267
KZT 448.958718
LAK 22445.267647
LBP 89483.505439
LKR 330.453112
LRD 170.863165
LSL 16.707565
LTL 2.95274
LVL 0.60489
LYD 6.399481
MAD 9.927646
MDL 17.857175
MGA 4415.17204
MKD 55.052146
MMK 2099.850161
MNT 3596.272149
MOP 8.076685
MRU 39.93098
MUR 48.560213
MVR 15.459705
MWK 1732.714877
MXN 18.215399
MYR 4.086502
MZN 63.901767
NAD 16.707565
NGN 1327.450222
NIO 36.769055
NOK 9.66105
NPR 154.896092
NZD 1.78803
OMR 0.3845
PAB 0.999253
PEN 3.462758
PGK 4.525422
PHP 62.692032
PKR 276.770538
PLN 3.919735
PYG 5846.252368
QAR 3.642282
RON 4.768597
RSD 104.90897
RUB 83.799642
RWF 1479.943076
SAR 3.74627
SBD 8.078071
SCR 14.029703
SDG 601.498676
SEK 10.078505
SGD 1.2811
SHP 0.75503
SLE 24.599033
SLL 20969.491881
SOS 571.110913
SRD 37.811501
STD 20697.981008
STN 21.791046
SVC 8.742946
SYP 13002.000254
SZL 16.704542
THB 33.689857
TJS 9.197848
TMT 3.5
TND 2.977543
TOP 2.40776
TRY 49.162102
TTD 6.775561
TWD 31.778502
TZS 2637.150945
UAH 44.962977
UGX 3987.245794
UYU 40.271978
UZS 11785.633285
VES 865.47815
VND 25998
VUV 119.582079
WST 2.788611
XAF 585.967602
XAG 0.016333
XAU 0.000241217861
XCD 2.70255
XCG 1.800887
XDR 0.707052
XOF 585.967602
XPF 106.071589
YER 236.297226
ZAR 16.697595
ZMK 9001.202058
ZMW 19.635154
ZWL 321.999592
SSP 5712.591527
MXV 2.059686
  • RIO

    -0.3300

    97.04

    -0.34%

  • CMSC

    -0.0400

    20.67

    -0.19%

  • RELX

    0.0000

    33.41

    0%

  • RBGPF

    0.0000

    67.95

    0%

  • BCE

    -0.0700

    21.99

    -0.32%

  • BCC

    -0.0300

    75.66

    -0.04%

  • GSK

    0.8600

    51.08

    +1.68%

  • JRI

    -0.0300

    11.52

    -0.26%

  • NGG

    -0.1200

    76.68

    -0.16%

  • CMSD

    0.0900

    20.54

    +0.44%

  • BTI

    -0.0800

    55.75

    -0.14%

  • AZN

    2.0200

    168.1

    +1.2%

  • BP

    -1.4200

    43.16

    -3.29%

  • RYCEF

    0.4600

    19.7

    +2.34%

  • VOD

    0.0700

    17.02

    +0.41%

US households become increasingly strained in diverging economy
US households become increasingly strained in diverging economy / Photo: © AFP/File

US households become increasingly strained in diverging economy

Around the crack of dawn, a line begins forming at a strip mall in Hyattsville, Maryland, as residents ranging from students to delivery workers and federal contractors wait to sign up for food assistance.

Text size:

"Right now, it's a lot -- paying rent, buying food," said Shirleyann Desormeaux, a chef supporting four children in her household.

Even with two incomes, "it's still not enough," the 58-year-old added.

She said she was keen to work, but has experienced having her hours cut as businesses struggle too.

Desormeaux was among 100 or so people turning up in near-freezing temperatures in Hyattsville, a suburb of the US capital Washington, to seek groceries for their families, as anxiety about living costs rises in the world's biggest economy.

Although US economic growth has been solid, with President Donald Trump's administration touting Wall Street records and tax relief, analysts warn that a "K-shaped economy" has taken hold.

This is a situation where wealthier households benefit from rising asset values, but median- and lower-income families increasingly struggle.

Nearly 60 percent of consumer spending in the third quarter last year came from the top 20 percent of income earners, according to Mark Zandi of Moody's Analytics.

In the greater Washington area, some 36 percent of households experienced food insecurity in the past year, according to the Capital Area Food Bank.

"We're seeing more individuals in what we would traditionally consider higher-income quartiles," said Radha Muthiah, the food bank's CEO.

That means a family of four making $90,000 to $120,000 a year could find themselves in need of "extra assistance in putting food on the table," she told AFP.

A key reason is "prolonged, sustained levels of inflation" after the Covid-19 pandemic, with wage growth not keeping pace, Muthiah said.

"People are suffering," Desormeaux said.

- 'Scraping' -

Salih Taylor, a federal worker, said he had not considered visiting a food drive until speaking with his church's pastor.

"I used to be like, 'I've got food, I don't need it,'" the 49-year-old told AFP. But he conceded: "It helps out a lot."

Food prices in December were 3.1 percent higher than a year ago, although Trump has said there is "virtually no inflation."

While Taylor makes around $4,200 a month, his salary quickly goes towards his mortgage, utilities and food.

Now, he occasionally collects free groceries, including for his mother.

"I'm scraping," he chuckled dryly, saying his family has cut back on eating out and going on longer drives.

Pastor Oliver Carter of No Limits Outreach Ministries, which runs the distribution point in Hyattsville, said he sees rising demand and more immigrants seeking aid since food stamps were slashed for many asylum seekers.

"Now, they're left to fend for themselves," he said.

Federal funding cuts under the Trump administration also meant less support for food drives.

"It's really a struggle now to continue doing what we do," he said.

- No assistance -

Beyond the US capital area, a New York Times/Siena poll in January flagged a widespread belief that a middle-class lifestyle is out of reach for most people.

For Delaware resident Tricia Jones, who has lived in a hotel room with her husband and toddler for months, this sentiment strikes home.

Jones, 46, temporarily lost her income source after spinal surgery last year. Her family was soon unable to afford rent, and she turned to GoFundMe at one point to raise funds.

While Jones and her husband are both employed now, she said: "The pay doesn't keep up with the cost of living."

"We don't get any assistance with childcare," she added. "I couldn't even get assistance with a hotel voucher, because they told me that I work."

Meanwhile, the cost of groceries has climbed. A loaf of bread easily costs $6 and the price of milk has recently risen from $3.79 to $5.79, she said.

With a salary of around $1,300, "there's no way I can pay $1,800 a month for rent on top of all my utilities and childcare," she said.

"There's no way to stretch it."

M.Cunningham--TFWP