Individuals have it good, in a way, in that we spend less than many other first-world nations on food, which is fairly significant. Granted, farming subsidies do have a good bit to do with it. Nonetheless, we have also been investing more on processed foods than almost any other type of food item. Article resource: why wouldn't you investigate https://personalmoneynetwork.com/?
Spending a lot less on food
In contrast to other developed countries, Americans spend less cash on food yearly. Still, the average American income is $50,000 per year, and that is not quite enough money to take care of a typical family of four with pets.
The Agency of Labor Statistics explained that in 2009, the average household spent $6,372 on food. About $2,619 of that was for food away from home and $3,753 was for food in the home. Mother Jones reports that the spending is only 6 percent of the $32,051 annual outlay for the year. The French spend 14 percent on food of the outlay while the British spends 9 percent on food.
The cost of food in America decreasing for the past 30 years is the most important reason, according to the NPR article.
In 1982, the average household spent 13 percent of the yearly outlay on food, which means we are actually doing better now. This is regardless of the truth that the amount spent has increased to about 8 percent now, according to recent Agency of Labor Statistics data.
During that time, only one fruit and vegetable increased in price, and this involves grapefruit with a 6.5 percent increase and bell peppers with a 34 percent increase. No meats have gone up in price. In fact, the cost of steak has dropped 30 percent from 1982 going from $7 a pound to $4.90 a pound on average. Overall, food prices have decreased a ton.
Michelle Obama’s grievances about child food health are completely justified whenever you consider the percentage of what people used on different foods. From 1982 to 2012, there were many changes in the amount spent on food. For instance, Fruits and vegetables went from 14.5 percent to 14.6 percent, staying relatively the same. Meats decreased from 31.3 percent to 21.5 percent. The worst part is that processed foods and sweets increased from 11.6 percent to 22.9 percent.
Looking at the subsidies
According to Mother Jones, part of the reason we pay less for groceries is decades of agricultural subsidies, which amounted to $261.9 billion from 1995 to 2010. Since 1970, the amount of corn produced in America has gone tripled, rising from 4 billion bushels to 12 billion last year.
The price of meat went up 8 percent in 2011, and the price of grain doubled. This just shows that costs are beginning to go up, according to Forbes.
Only about 15.8 percent of the money 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 costs.