Millions of Americans who were surviving in the Middle Class are quickly falling into poverty in the US due to soaring food prices. With inflation and energy costs climbing fast over the past six months, food prices have risen to nearly 50% since that time on both raw commodities, and the finished products on your grocery shelves.
Nearly 44 million people are in trouble of falling into poverty according to a new report on March 18th by the World Bank. Numerous reasons such as higher energy prices, droughts and flooding in the Middle East, and currency inflation for world markets, are all causing the dwindling production of food commodities to effect people at their basic level of subsistence, and are also leading them to protests and revolts.
Another area that is hurting the public, both in the US and abroad, are the speculators that come out when any commodity is in short supply. Currently, there is little if any cotton available on the world markets, and we are seeing the price of clothing move up in price much faster than food or energy. However, food prices have also skyrocketed since February when a freeze in Mexico and Florida caused massive destruction to winter crops. In fact, February saw the steepest climb in food prices in 36 years, which will only cause more speculation to control what may or may not be produced this summer.
As the recession continues to endure here in the US, and little hope for an end to the massive unemployment that has remained a stigma to our economic recovery, the Federal government will be stressed with the burden of providing more and more food assistance, and at much higher costs.
Over the past month, we have seen nations throughout the Middle East, Africa, and Europe rebel against their governments over the price of food, and with tens of millions of people expected to fall below the poverty level in the coming months over food costs, the chaos will only grow, not decline.
The Middle class in America is shrinking daily, and that decline is moving faster now that food prices are rising with little deterrence in sight. Millions of Americans are moving into poverty, and unless something changes in overall food production, the prices will continue rise to the point where many people will be unable to afford it.
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