ECON What Will You Do When Inflation Forces US Households To Spend 40% Of Their Incomes On Food?

[jward]

I think you are right; I too believe the time is here; since early this morn when out of nowhere anxiety woke me : (
Buckle up boys n girls, apparently we're hereeee

All the signs are popping up. For many who don't believe or who have thought about doing it later, the time is here. We are living on borrowed time, many are telling and showing you what is about to occur. As a community we all tell each other what is happening in this world. We have become brothers and sisters and prepare each other for the coming days. Well those days are knocking at the door and we're seeing the words fly off the pages, "A quart of wheat for a denarius, and three quarts of barley for a denarius, but do not harm the oil and the wine. "

 

[jward]

I've always paid cash for homes n cars too- which is part of why I am surprised to realize I don't know what I spend on groceries, my once well ordered life hit the pause button, n now if I use it, and see it, and it'll keep, i buy it/can it/grow it/dry it.
: (

Not sure that from scratch will be the advantage it once was; even the basics are increasing in price buy by leaps and bounds.

 

[mzkitty]

Hmmm, I dunno. Just keep doing the best I can, I guess.

LOL, speaking of which, check this out. It goes with this thread and is some funny sh*t. People might be starting to tweak:

https://twitter.com/search?q=%22%2425%20USD%22&src=trend_click&vertical=trends

 

[Border Collie Dad]

We eat pretty cheap because 90% is cooked from scratch.
Almost never buy convenience foods.

Just put in 1/2 beef and 1/2 hog so we have protein fixed for a while.
Should get some chickens for the freezer and a few more egg layers.

I'm weak on produce but hope to remedy that some with this year's garden.

 

[SouthernBreeze]

Not sure that from scratch will be the advantage it once was; even the basics are increasing in price buy leaps and bounds.

So true. I basically cook from scratch, and my grocery bill continues to climb.

 

[20Gauge]

there are three sides of this equation.
1. The typical family spends 10% on food.
2. The 10% does not include other food like dining out and pet food.
2. Inflation will increase that to 40%.

Freeholder has figured it out.
First . . . most of you spend more than 10% on food already
Second . . . no one ever thinks of dining out and pet food as food.
Third . . . it is going to go to much more than 40% of income.

Our pets are like family so we did include them in the 16%. We used to do 7ish%, but as we paid things off, we have a bit more income available, also we are adding to the pantry every other week to improve our long term survival.

So a good portion of what we spend on food is stocking.

 

[jward]

I need one of the lil's to become a bobby baby the rooster- some way some how I ran outta boys, and we here need em to make us freezer fillers : (

 

[20Gauge]

Well, too many (even retireds) spend 60% or more for housing right now, so it's gonna leave a mark.

We spend 24% on housing and all related items to housing, power insurance, etc.
We spend 16% on food but that includes eating out and stocking up.
We spend 25% on retirement
We spend 5ish % on improvements to the home
We spend around 30% in taxes.

 

[SouthernBreeze]

So a good portion of what we spend on food is stocking.

Same here. I buy, every two weeks, what I use out of my pantry in those two weeks. I add more to food storage as I find things on sale. Restocking a two week supply of dog and cat food and their treats adds to the bill, too.

 

[20Gauge]

We don't have room for our grocery bill to increase any more than what it already has. We're going to have to make ourselves buy less, and learn to eat cheaper than what we do. My grocery bill runs around $450 every two weeks. That's $900/month. I include in that cleaning products, toiletry items, etc. and dog and cat food. Don't know what percent of Cary's income that is, though. We don't have a garden large enough to sustain us, either, due to our health.

We do the same. Our food budget includes everything like clothing, pet food and cleaning products.

One way we were able to reduce our budget needs was to look at it as a business with expenses. We then took the highest cost item and broke it down to see if we could make it cheaper, buy it better in bulk or eliminate it from our diet.

After you get through about half the list, it can make a significant reduction in costs.

 

[Redcat]

We only spend 15% of our small income on food (SS and tiny pension). I could stretch that to 25%, but that's the limit. And that includes buying a couple of items I deem an absolute (fresh cream - I hate ultra pasturized) and bottled water (ours is bad, they treat it so much it tastes like chemicals).

But I have been slowing down on the prep items, as the pantry is full. I am also getting lesser cuts of meat. Now it is mostly ground beef, chicken or items on special (last biggie was a post Easter ham). I had not gone out for groceries in two weeks and when I went last Friday it was a shocker how prices had gone up. Notably, a loaf of homemade, frosted cinnamon raisin bread went from $2.99 at the Mennonite store to $4.39. But that bread, along with a dozen eggs close to expiration point made enough french toast for breakfast for three days for two people. It was worth it.

I stayed in budget, but it was not easy. As I most likely won't shop again for another ten days or so, it's going to be interesting. Thankfully the garden is almost ready to plant.

 

[Cohickman]

I will stop paying everything except utilities. With the entire country in dire straights, try to kick me out of the house.

 

[20Gauge]

We are hoping our fruit trees begin to do better. We are learning how to treat them better. I was too used to California where anything and everything grows without help.

We have one tree that has never produced fruit, and this year it has a small bit of fruit.

If we can get something from everything, then we will so much better off.

Lastly, Wife got an expensive juicer for her birthday. We hope we can use the quince and juice it, we get about 40 pounds per year.

 

[raven]

another thing to consider or two.
1. if the masses are forced to spend more on food, they will spend less on other stuff, those prices will go down.
2. if the masses spend more, there will be better stuff in garage sales

 

[Meemur]

Not sure that from scratch will be the advantage it once was; even the basics are increasing in price buy by leaps and bounds.

Yes -- true! -- but it's still less expensive to make simple foods from scratch and to eat in season. Even at the height of the recession in Michigan, I wasn't spending 40% of my income on food. Granted, there were some meals that were homemade bread and soup, but I'm still here.

 

[20Gauge]

another thing to consider or two.
1. if the masses are forced to spend more on food, they will spend less on other stuff, those prices will go down.
2. if the masses spend more, there will be better stuff in garage sales

I agree with the garage sales part. People will look to liquidate as much as possible.
The first part that prices will drop? On things that people do not need that are not food? Maybe. In reality, I expect the prices to rise and availability to drop. Not prices to drop.

Things outside of food, could very well become luxuries that 70+% of the population can no longer afford. Beyond basics for sure.

Basics: Clothing low end
Cell phones / most entertainment

Not basic: eating out
Nice cars
Insurance
Lots and lots of other things.

 

[John Deere Girl]

We raise a lot of what we eat, but not everything. We have dairy goats, but I'm thinking of adding meat goats, as I can handle them myself, and I can process them myself too.

 

[jward]

Yuppers, being less an advantage, but still less expensive is not mutually exclusive...

personally I prefer a home made bread n soup, n bits and bobs so I should fare pretty well eating whatever I can invent w/ whatever I can find.. except bread doesn't like me nearly as much as I <3 it these days LOL

Yes -- true! -- but it's still less expensive to make simple foods from scratch and to eat in season. Even at the height of the recession in Michigan, I wasn't spending 40% of my income on food. Granted, there were some meals that were homemade bread and soup, but I'm still here.

 

[raven]

I agree with the garage sales part. People will look to liquidate as much as possible.
The first part that prices will drop? On things that people do not need that are not food? Maybe. In reality, I expect the prices to rise and availability to drop. Not prices to drop.

Things outside of food, could very well become luxuries that 70+% of the population can no longer afford. Beyond basics for sure.

Basics: Clothing low end
Cell phones / most entertainment

Not basic: eating out
Nice cars
Insurance
Lots and lots of other things.

the prices of needs for daily living will rise.
the cheaper something is . . . the more the price will rise.

the trick is that the more expensive a thing is, the more difficult it will be to sell and financing will be required.
things like homes will fall in value. homes, cars, boats, ATVs etc.
in addition, interest rates will rise. home values have an inverse relationship to mortgage rates.
as mortgage rates go down, home prices go up. as mortgage rates go up, home prices go down.
but that is in a normal economy.

 

[raven]

oh yea . . . i forgot . . .
insurance.
we live in "insurance world" now
and insurance is based on replacement value.
Insurance and taxes
I expect that FMV of your home and auto is going to increase
and they will then increase the price of your insurance
BUT when the value goes down . . . what do you think will happen?
do you really think they are going to lower your tax bill or your insurance premium?
and don't even think about health insurance

 

[SouthernBreeze]

If the masses are forced to spend 40% of their incomes on food, will soup kitchens and bread lines follow shortly after? I don't know how people could sustain spending that much of their income on food, and be able to pay all other monthly bills, too. There are lots of people out there who can't, for whatever reason, raise their own meat, and grow their own garden. Will they have to become dependent on the free food programs just to keep a roof over their heads, lights on, and water running? I'm not talking about those who are already doing this, because they are part of the "free shit' army, but those who will sink into a whole new level of poverty through no fault of their own.

 

[Bones]

If you didn't already know, here is what EBT/SNAP/"fna food stamps " pays out for a household of 2 people.

$430 a month

I, embarrassingly, speak from our personal experience.

As to the comment in an earlier post about poor folk being fat in America, the answer is very easy to see.

Cheap foods make you fat, generally.

When junk foods with high calories, empty nutrition, carbs, sugars and fat are allowed to be purchased on the .gov's dime.....there you have it

It is an education problem, as well as a laziness problem. There are millions of jungle bunnies, white trash, and everything in between who do not truly know the difference between right and wrong, let alone know how to buy basic staples, keep a freezer and pantry stocked, and cook from scratch.

 

[20Gauge]

the prices of needs for daily living will rise.
the cheaper something is . . . the more the price will rise.

the trick is that the more expensive a thing is, the more difficult it will be to sell and financing will be required.
things like homes will fall in value. homes, cars, boats, ATVs etc.
in addition, interest rates will rise. home values have an inverse relationship to mortgage rates.
as mortgage rates go down, home prices go up. as mortgage rates go up, home prices go down.
but that is in a normal economy.

Long term? Sure maybe as everything evens out over time.

Short term? No way. People will stop buying / selling homes. Smaller items will still move, but at higher prices as people will be desperate for the cash / metal. There will be a lot of repos also.

Mortgage rates will go up significantly as will home prices. In some respects, it will be like the 70s where that very thing happened. Stagflation.

I actually think it will far worse than the 70s. I remember it being hard to get what was needed. The most popular store was the 2 day old bread store.

Things will stop moving. Money will slow down so much it might as well be stopped. People will not spend money unless it is really needed. That is 90% of the economy will be destroyed or reduced significantly.

I do see an exception. Government workers will be the safest and most comfortable of everyone in the nation. Their pay will be in new dollars, and rise to make it liveable.

I also believe the current chip problem will give us a solid idea how things are going to go. Watch the economy as summer approaches and there are no new cars to be sold. The lot I took a picture of last week, was even emptier than it was the week before.

 

[20Gauge]

oh yea . . . i forgot . . .
insurance.
we live in "insurance world" now
and insurance is based on replacement value.
Insurance and taxes
I expect that FMV of your home and auto is going to increase
and they will then increase the price of your insurance
BUT when the value goes down . . . what do you think will happen?
do you really think they are going to lower your tax bill or your insurance premium?
and don't even think about health insurance

Our long term plan is to not have insurance, but rather save to cover our costs. Exception being the rentals. Liability is important.

 

[20Gauge]

If the masses are forced to spend 40% of their incomes on food, will soup kitchens and bread lines follow shortly after? I don't know how people could sustain spending that much of their income on food, and be able to pay all other monthly bills, too. There are lots of people out there who can't, for whatever reason, raise their own meat, and grow their own garden. Will they have to become dependent on the free food programs just to keep a roof over their heads, lights on, and water running? I'm not talking about those who are already doing this, because they are part of the "free shit' army, but those who will sink into a whole new level of poverty through no fault of their own.

You hit a key item. People need to shed as many bills as humanly possible as fast as possible. Otherwise they will sink.

 

[philkar]

Not to drift the thread, but rabbits and geese are excellent survival livestock. Turkeys are generally too stupid to reproduce, and require way too much knowledge, equipment and luck to raise. Commercial breeders *expect* 50% mortality in poults who actually hatch!

We fiddled with them for years...

Summerthyme

I hate messing with turkeys. Now that is a species that is truly too stupid to live! I used to get so aggravated with them! Needless to say they are not part of our little piece of heaven!

 

[20Gauge]

I, embarrassingly, speak from our personal experience.

There is no reason for that. You are the reason for it. Not the others who are too lazy to do what is needed to be better.

 

[jward]

But I LIKE eating turkey : (

 

[ShadowMan]

Expanding the gardens, building a greenhouse, LEARNING the foraging foods available in our area (LOTS OF ACORNS!). Increasing fuel and water storage. Improving security. Getting any repairs/maintenance completed NOW. Stocking up - STOCKING UP - STOCKING UP.

The biggest goal to go for: GET - OUT - OF - DEBT, we've managed to achieve that (finally). EVERYTHING is paid off/paid for/owned outright. That is the biggest hurdle to achieve for anyone and an AWESOME feeling when you've finally arrived there.

 

[summerthyme]

I hate messing with turkeys. Now that is a species that is truly too stupid to live! I used to get so aggravated with them! Needless to say they are not part of our little piece of heaven!

Yep... when you have to make little jackets for the hens because the tom has ripped a 6" gash down both sides of her back... thats ridiculous.

As I told hubby... if I wantbig birds that crap everywhere, I'd keep geese again. They, at least, are smart enough to protect and raise babies, and they eat grass! Cheapest meat, bar none. But they're pretty social, so its difficult to keep them down in a pasture. And they make a huge mess wherever they go.

But you can collect a couple dozen of the huge eggs before leaving them for the hen to set, and she'll raise 8-12 babies which will be delicious roast goose by fall. Overwinter a gander and 2-3 geese... it won't break you to feed and house them. Then turn them loose in the Spring and you'll have a couple hundred pounds of high quality protein by Fall.

Summerthyme

 

[John Deere Girl]

I hate messing with turkeys. Now that is a species that is truly too stupid to live! I used to get so aggravated with them! Needless to say they are not part of our little piece of heaven!

We have turkeys, and I think the breed determines exactly how stupid they are. Royal palm turkeys are my favorite, and they will raise their babies.

 

[Troke]

Oh Good Grief. The Cultural Left has bitched and moaned for decades that food in this country is too cheap!

As I have ranted time after time, the Lesser Classes will live frugally.

Food, shelter, a little for clothing and that is all the LC needs. And food does not include meat.

The Cultural Left is so close to gaining this, they are standing in puddles from wet panties.

 

[John Deere Girl]

Yep... when you have to make little jackets for the hens because the tom has ripped a 6" gash down both sides of her back... thats ridiculous.

As I told hubby... if I wantbig birds that crap everywhere, I'd keep geese again. They, at least, are smart enough to protect and raise babies, and they eat grass! Cheapest meat, bar none. But they're pretty social, so its difficult to keep them down in a pasture. And they make a huge mess wherever they go.

But you can collect a couple dozen of the huge eggs before leaving them for the hen to set, and she'll raise 8-12 babies which will be delicious roast goose by fall. Overwinter a gander and 2-3 geese... it won't break you to feed and house them. Then turn them loose in the Spring and you'll have a couple hundred pounds of high quality protein by Fall.

Summerthyme

I've had geese before, and they were so mean. They were very sweet at first, but then they became vicious. I'd have them again, if I knew how to keep them friendly.

 

[WalknTrot]

I've had geese before, and they were so mean. They were very sweet at first, but then they became vicious. I'd have them again, if I knew how to keep them friendly.

Mine were such babies...more like lap dogs...that I hated killing them in the fall.
I found out that Minnesota is no place that you want to overwinter frozen-water-mess geese. Ugh.

 

[Donna_in_OK]

I have a little ravine on my land that is probably about 30 feet wide and in places about 12 feet deep. We have been talking about building a dam at one end to make a pond. Then, I could stock fish. For me, it would probably be more for entertainment, as I love fishing, but can and will eat fish if I need to.

Adding more 'on the hoof', with hoof being a relative term. Not sure if we are ready for cow yet, but hopefully by next year. Chickens are great for the eggs, and we are currently overrun with them (they freeze dry fantastic). We are also thinking about meat birds.

Garden has been greatly expanded this year, and hopefully the harvest will be bountiful.

 

[mecoastie]

Everyone raising stock of any kind your feed bills will increase as well. We can 100% forage and grow our rabbit feed but not our chicken feed yet. Adding more potatoes and corn this year but it is more than likely going to be people food. Trying mangles again as well.

Also as food costs rise you will see more shortages of garden seed, chicks etc.

 

[SouthernBreeze]

Expanding the gardens, building a greenhouse, LEARNING the foraging foods available in our area (LOTS OF ACORNS!). Increasing fuel and water storage. Improving security. Getting any repairs/maintenance completed NOW. Stocking up - STOCKING UP - STOCKING UP.

The biggest goal to go for: GET - OUT - OF - DEBT, we've managed to achieve that (finally). EVERYTHING is paid off/paid for/owned outright. That is the biggest hurdle to achieve for anyone and an AWESOME feeling when you've finally arrived there.

Absolutely! Out of all debt here. We live almost off grid, and can go totally off grid anytime we choose. We don't now only for convenience sake. We aren't able to have a garden of much size, but we forage in the woods around our property all the time. We also have a nice big lawn that is not only landscaped with lots of shrubs and flowers, but edible native plants, too. Huge oak trees in our yard produce lots and lots of acorns. Other edible nut bearing trees, too. Hickory nuts. walnuts, and pecans.

Being very frugal and not believing that you have to have the latest and greatest gadget, or anything else, that comes along helps, too. People can live without a lot if they just put their minds to it. We are a spoiled people.

 

[BenIan]

Not to drift the thread, but rabbits and geese are excellent survival livestock. Turkeys are generally too stupid to reproduce, and require way too much knowledge, equipment and luck to raise. Commercial breeders *expect* 50% mortality in poults who actually hatch!

We fiddled with them for years...

Summerthyme

Looking at getting into rabbits this summer. I worry about how they would do in my climate (hot and humid). I want to keep it small, especially at first. Is one buck and two does enough to start?

 

[summerthyme]

Hmmm... we had protective ganders for sure, but our experience was more like Walk n Trot's... they were big pets who liked to hand around on the lawn near us. We always moved them into a deep bedded pen for the winter, after our oldest female got a badly frostbitten foot.

But for sure, they are protective of their babies! We lost a baby to a fox one Spring, so we started trying to move the family inside the barn for the night. Talk about a circus! We finally figured that if we snatched a gosling and ran to the barn, the angry parents would follow at full speed... with the rest of the goslings frantically trying to keep up. So, we'd set up all the doors, gates, etc. Hubby would grab a gosling and run for the barn. He'd run right into the pen, with two pissed off geese on his heels, and I'd haze the rest of the goslings into the pen. He jumped out over the fence, and I shut the gate.

The funny thing was, geese are smart! (Not like turkeys!) It only took two repetitions of the "put them to bed in the barn" circus... the third night, we arranged the doors and gates, started walking towards the geese- and they all ran into the pen on their own! For the next 3 weeks (until the gosling were big enough to not be easy prey) all we had to do was open the pen and holler "bedtime!"

Oh, and geese will build up quite a bit of fat, even without grain. Fat is pretty much the hardest macronutrient to obtain in a basic diet, when living off the land. While the dark meat on a goose isn't my favorite, they would be really valuable in a survival situation.

Summerthyme

 

[KFhunter]

I swore I'd never have chickens unless the apocalypse was coming.



I have chickens now.



But if I get a milk cow, be very afraid.