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Thursday, May 1, 2008

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More needy heading to food banks

Woman at food bank

Consumers are facing a double whammy. Sticker-shock at the gas pumps and again at the grocery store. Today a Congressional hearing focuses on how rising food costs affect Americans and what can be done. Jeff Tyler has more.

Woman choosing food at the Daily Bread Food Bank in MIami, Fla. (Joe Raedle/Getty Images)

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TEXT OF STORY

Scott Jagow: Today, in Washington, Congress looks at how food prices are affecting people in this country. Jeff Tyler reports.


Jeff Tyler: With the slowing economy and rising unemployment, low income Americans are being squeezed.

George Brailey: Many people who've never been to a food pantry or a food bank are finding themselves in need today.

That's George Brailey with America's Second Harvest, a network of food banks. He'll be speaking at today's hearing. He says the need for assistance is growing.

Brailey: The number of people receiving food stamps today is 1.3 million higher than it was just a year ago.

But with the rapid rise in prices, food stamps don't go as far. As a result, more families are turning up at soup kitchens. And Brailey says charities are having a harder time providing help. For one thing, the federal government is donating less food than in the past. And, of course, inflation cuts into a food bank's buying power. So, with the same budget, they can't feed as many people.

I'm Jeff Tyler for Marketplace.

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Marketplace Confessional

"Chris Farrell calls this a 'blue-collar recession'. According to journalist Nan Mooney and professor of financial law Elizabeth Warren, the white-collar middle-class may not be losing jobs, but they are falling behind in earnings and growing in debt, so are feeling -- and are -- less secure than their parents. Job loss, wage stagnation (or retreat) for white-collar workers, job insecurity . . . really rankle when we see the top 1 percent continue to grow richer each year, and often because today's business practices squeeze the rest of us till we bleed."

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