Wednesday 5 August 2015

People Spending Less On Groceries But More On Junk Food

By Cornelius Nunev


Individuals spend less on groceries than most other developed countries. Regrettably, we also spend more on unhealthy foods than fruits and vegetables.

Low expenditures comparatively

The typical family of four with pets will find it difficult to get by with a $50,000 a year income, and that is the average in the country. There is good news. Compared to other developed countries, we are actually spending a lot less on food.

In contrast to other nations, the U.S. is not looking too bad since the typical British family spends 9 percent of the annual outlay on food and the typical French family will spend 14 percent. Mother Jones points out that Americans only spent six percent of the $32,051 yearly outlay for 2009. That adds up to $6,372 total on food for the year: $3,753 for food in the home and $2,619 for food from the home.

The cost of food in America decreasing for the past 30 years is the most important reason, according to the NPR article.

The First Lady advocating better food

In 1982, the average household spent 13 percent of the annual outlay on food, which means we are really doing better now. This is despite the belief that the amount spent has increased to about 8 percent now, according to recent Bureau of Labor Statistics data.

Food prices have actually dropped a lot in that time. In fact, no meats went up in price. Steak costs dropped from $7 a pound to $4.90 a pound from 1982 to 2012. Grapefruit costs increased 6.5 percent and bell pepper prices increased 34 percent. Other than that, no other fruits and vegetables increased in price.

What some may view as troublesome is how much is used on what type of food. Meats declined from 31.3 percent of food expenditures in 1982 to 21.5 percent of expenditures in 2012. Vegetables and fruit stayed broadly the same at 14.5 percent in 1982 and 14.6 percent in 2012. However, processed foods and sweets doubled from 11.6 percent in 1982 to 22.9 percent in 2012. The First Lady might be criticized for advocating feeding children more vegetables and fruit, but she may be on to something.

Thanks to subsidies

From 1995 to 2010, the agriculture industry has received $261.9 billion in subsidies. The amount of corn produced manufactured in America increased from 4 billion bushels to 12 billion bushels in that time. This is part of why we are paying less for groceries, according to Mother Jones.

Grain prices and meat costs have increased a lot recently though. In 2011, the price of grain doubled and the price of meat increased 8 percent.

Only about 15.8 percent of the cash brought in from selling food goes to the farmer who produced it, which means farmers do not benefit from the low prices, according to the Department of Agriculture. The Daily Green points out that this means farmers need higher prices.




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