Zürcher Nachrichten - US households become increasingly strained in diverging economy

EUR -
AED 4.28379
AFN 74.652987
ALL 96.184978
AMD 438.959313
AOA 1069.635991
ARS 1617.875056
AUD 1.657586
AWG 2.099612
AZN 1.985985
BAM 1.950285
BBD 2.34786
BDT 143.258125
BHD 0.440329
BIF 3464.943838
BMD 1.166451
BND 1.486053
BOB 8.054773
BRL 5.951125
BSD 1.165654
BTN 107.617593
BWP 15.6399
BYN 3.402476
BYR 22862.447141
BZD 2.34446
CAD 1.615704
CDF 2684.004517
CHF 0.922856
CLF 0.026592
CLP 1046.587354
CNY 7.974154
CNH 7.970584
COP 4257.290935
CRC 542.243343
CUC 1.166451
CUP 30.910962
CVE 110.638015
CZK 24.396215
DJF 207.302003
DKK 7.472256
DOP 70.745071
DZD 154.453218
EGP 62.107944
ERN 17.496771
ETB 181.528985
FJD 2.583049
FKP 0.867931
GBP 0.870692
GEL 3.131926
GGP 0.867931
GHS 12.848475
GIP 0.867931
GMD 85.151075
GNF 10241.443408
GTQ 8.917781
GYD 243.880919
HKD 9.138448
HNL 31.050973
HRK 7.533757
HTG 152.820632
HUF 376.821534
IDR 19916.049266
ILS 3.602422
IMP 0.867931
INR 108.001325
IQD 1528.051314
IRR 1533883.57139
ISK 143.788164
JEP 0.867931
JMD 183.501076
JOD 0.826994
JPY 185.154916
KES 150.937318
KGS 102.00596
KHR 4682.136126
KMF 495.161701
KPW 1049.752741
KRW 1725.065404
KWD 0.360655
KYD 0.971399
KZT 557.327208
LAK 25618.17449
LBP 104433.842725
LKR 367.440912
LRD 214.857224
LSL 19.380598
LTL 3.444228
LVL 0.705574
LYD 7.401153
MAD 10.853846
MDL 20.073117
MGA 4826.200023
MKD 61.613944
MMK 2449.291434
MNT 4170.355823
MOP 9.404621
MRU 46.770304
MUR 54.262985
MVR 18.033752
MWK 2026.125728
MXN 20.356562
MYR 4.64306
MZN 74.60658
NAD 19.374974
NGN 1605.04845
NIO 42.843276
NOK 11.172161
NPR 172.190894
NZD 2.000583
OMR 0.448417
PAB 1.165644
PEN 3.970309
PGK 5.027102
PHP 69.600972
PKR 325.439326
PLN 4.252258
PYG 7561.616457
QAR 4.25287
RON 5.093079
RSD 117.338004
RUB 91.61844
RWF 1703.602247
SAR 4.377367
SBD 9.388196
SCR 16.479368
SDG 701.03745
SEK 10.878308
SGD 1.486619
SLE 28.753228
SOS 666.62838
SRD 43.804935
STD 24143.188608
STN 25.008718
SVC 10.200155
SYP 128.955664
SZL 19.380631
THB 37.406944
TJS 11.079845
TMT 4.08258
TND 3.373326
TRY 51.899734
TTD 7.906303
TWD 37.105753
TZS 3018.195128
UAH 50.516427
UGX 4312.601022
USD 1.166451
UYU 47.356081
UZS 14265.700323
VES 553.384247
VND 30707.415929
VUV 139.43143
WST 3.230244
XAF 654.070901
XAG 0.015792
XAU 0.000247
XCD 3.152394
XCG 2.100896
XDR 0.815322
XOF 657.878104
XPF 119.331742
YER 278.286172
ZAR 19.180648
ZMK 10499.465125
ZMW 22.293808
ZWL 375.59687
  • RBGPF

    -13.5000

    69

    -19.57%

  • JRI

    0.1600

    12.85

    +1.25%

  • BCC

    4.5200

    79.23

    +5.7%

  • BCE

    0.2900

    24.12

    +1.2%

  • NGG

    2.4400

    89.96

    +2.71%

  • CMSC

    0.1500

    22.29

    +0.67%

  • CMSD

    0.2100

    22.5

    +0.93%

  • GSK

    1.5300

    57.37

    +2.67%

  • RIO

    3.7900

    98.45

    +3.85%

  • BTI

    1.1500

    59.95

    +1.92%

  • RELX

    0.5700

    33.93

    +1.68%

  • VOD

    0.4600

    15.77

    +2.92%

  • RYCEF

    -0.5000

    15.25

    -3.28%

  • AZN

    3.4600

    204.27

    +1.69%

  • BP

    -1.3500

    45.89

    -2.94%

US households become increasingly strained in diverging economy
US households become increasingly strained in diverging economy / Photo: Brendan Smialowski - 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."

L.Rossi--NZN