In case you haven’t noticed, the Presidential election is drawing closer, and very soon the candidates will tell us how they expect to solve all of the world’s problems. There are two issues in particular that have not yet gotten much attention: the increase in childhood poverty, and the wealth gap between the super-rich and the rest of us. Both evoke strong emotions, and if presented to voters skillfully, could generate many votes.
Most people think childhood is a time that’s happy and worry-free. But unfortunately, not for everybody. Children living in poverty don’t have these blessings; and too often they also don’t have enough food, clothing and other essentials. They also have other issues that are not as obvious.
“Growing up in poverty injures a child’s emotional and physical well-being,” according to compassion.com, and has long-term consequences. These children are more likely to develop chronic illnesses due to a lack of nutrition and health care early in life. They may also suffer from a variety of emotional problems such as heightened anxiety, fear and lack of self-esteem, among others.
Who Woulda Thunk?
That childhood poverty is prevalent here is shocking, because America not that long ago was considered one of the wealthiest countries in the world and the bread basket for much of it.
The US Census Bureau estimates that more than 11 million American children were living in poverty in 2021 – approximately one in seven. That number has most certainly increased since then because of the effects of the pandemic, stubbornly high inflation, and other economic problems.
The Great Divide
At the same time, another issue is affecting tens of millions of people. In a nutshell, the wealthy are becoming even wealthier while the poor and the working poor are sliding deeper into debt. Statistics show that the gap between these groups has never been as large.
In late May, the Dow Jones Industrials were trading near their all-time high; this sounds like there should be enough pie to go around for everyone, but there isn’t. According to data compiled by the Federal Reserve, the wealthiest 10% of all Americans own a record high 93% of all stocks; they’ve never owned so much of the stock market. By comparison, at the opposite end of the spectrum, the poorest 50% of all Americans own just 1% of all stocks and mutual funds.
The poorest are not doing better with other assets either. “When you add in all the other forms of wealth, the bottom 50% of the population still owns just 2.6% of all the wealth,” according to The Economic Collapse Blog.
There are numerous examples of how Americans’ lifestyles have deteriorated because of their growing financial pressures. Following is just one that no one could have imagined just a few years ago.
People patronize fast food stores for a variety of reasons. They may want comfort food for themselves, happy meals for their kids, or just can’t afford a typical restaurant. For decades, this was a simple and harmless pleasure and available to most everyone, but the price of fast food has become so expensive that many consumers now consider it a “luxury” item and unaffordable.
The following, compiled by market commentator John Williams, will surprise many people. A McDonald’s quarter pounder-with-cheese meal is now $11.99, more than double the price it was in 2014. Taco Bell’s beefy five-layer burrito goes for $3.69, also more than double the cost in the good old days.
At Five Guys, a cheese burger with fries and a drink will set you back $22. And if you prefer a Big Mac, make sure you have $18 in your wallet because that’s how much you’ll have plunk down.
It’s not just these stores that have been forced to raise their prices; higher prices for meat, labor, overhead are industry-wide problems and Subway, Chipotle, and many other well-known eateries are also grappling with these issues. Such price hikes may seem modest to some, but for people who are financially strapped and have to make every penny count they are very difficult to cope with. And the problem is even worse for people who want to take their families out for a meal from time to time.
Fast food stores certainly would find it easier not to have to raise their prices, but they have no choice. And some consumers simply cannot afford those higher prices. A recent survey by Lending Tree has found that 80% of Americans believe fast food has become a luxury. The bottom line: They and their families are feeling the pinch, and so are many fast food stores that have been forced to close their doors because consumers are staying away.
Why The Wealth Gap?
At one time, the American economy was an incredible money-making machine. Today, economists are trying to figure out how to beat high inflation, deficits and debt. Why has the U.S. economy changed so drastically? Will lifestyles continue to decline sharply?
These are straightforward questions but very complicated to answer. One survey reveals that “Americans have lost faith in the system and are becoming increasingly restless, and our politicians have been trying to keep them pacified with handouts.”
Not Just A Few
It now costs the average family $12,000 more to maintain the same standard of living it had in January 2021, and many of them just do not have that money. In fact, approximately 40% of the U.S. is now either living in poverty or are among the working poor. And an additional 42 million people are getting by only because they’re receiving food stamps and/or other government assistance.
According to The Economic Collapse Blog, “The entire system is designed to get you deeper into debt and to get you paying interest on that debt until you die. And those that manage the system will do whatever it takes to protect the wealth of the elite.” For sure not everyone shares this view, but if nothing else it’s a good indicator of the anxiety, bitterness anger and distrust that’s out there.
Politicians who are able to convince the public that their policies can ameliorate problems such as childhood poverty and can improve life for the average Joe – and not just for billionaires – will likely tap into a huge voter base and make life not only better but also happier for many. Do you expect that to happen in 2025? We can only hope!
Sources: compassion.com; economiccollapseblog.com; thisisjohnwilliams.com; zerohedge.com
Gerald Harris is a financial and feature writer. Gerald can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.
