Delayed Second Stimulus Already Leading to Cuts in Grocery Store Spending

[BeckyDem]

Posted on August 28, 2020 by Yves Smith

The rich are so well insulated from the impact of the pandemic that they’ve managed not to see evidence of rising hunger in the US, like big lines at food kitchens. A new bit of evidence comes in the Wall Street Journal today, via a detailed account about how consumers are cutting back on grocery spending. With food such a core budget item, it seems likely that lower food spending translates into deeper cuts on other fronts.

The Journal attributes the falloff to the end of the $600 a week unemployment supplement in July. Grocers are sufficiently concerned that they are starting to offer more discounts.

The level of distress is almost certainly worse than the Journal reports, since the paper is relying on dollar spending. As most of you know, there’s been a lot of inflation in food prices even though the press has not taken much notice.

On top of that, I suspect, based on reader reports that some households are staring to up their stockpiles in anticipation of worsening levels of Covid in the winter, which could lead both to production problems and mini-buying panics. So if some are buying more to increase personal inventories, that means the adjusted average (in terms of purchases for current consumption) is even lower

https://www.nakedcapitalism.com/2020/08/delayed-second-stimulus-already-leading-to-cuts-in-grocery-store-spending.html

[Newest Reality]

1. This is going to be like...

This is going to be like standing on a beach and looking out on the horizon.

You notice that the water is a bit choppy, but then something in the distance catches your eye. It looks like a wall of water approaching. Then, you realize it is a Tsunami and it is unstoppable as it comes closer and closer.

[BeckyDem]

2. Well put, thank you.

The greed within the Republican party is unparalleled.

[yellowdogintexas]

3. we have been slowly stocking up on dried beans, rice, and cornbread mix

also essential (for us) items from Costco - Ro-Tel ( a useful substitute for canned tomatoes, which have been in short supply), Kirkland canned chicken breast, ready to eat canned black beans, chicken broth, and those huge blister packs of frozen chicken breast. We will pick up a case or two of canned diced tomatoes if they restock them.

I can whip up a very hearty soup with chicken breast, black beans, Ro-Tel, chicken broth and a handful of frozen corn. (zero WW points too)

We haven't been using the dried beans (except lentils) much yet. We just want them on hand because they are cheap, healthy, low in WW points and when combined with rice and corn bread constitute a perfect protein.

[BeckyDem]

4. You are smart to be prepared for this go around.

[Blue_playwright]

12. I've been doing the same...

... lots of meat that was a buck a pound too at my Kroger- the day it expires. And instant mashed potatoes.

[dalton99a]

5. Kick

[BeckyDem]

7. wow

[Igel]

6. I went food shopping for the first time in a month last week.

Full up on legumes, frozen burger, chicken. Couldn't fit any more in the freezer. Running low on okra, though, and topped off the meat supply.

We've also eaten out 3-4 times in August.

Part of the food supplies came from a small Indo-Pak store. Atta flour, mustard seed, tamarind. Got around to making Telugu-style ginger pickle yesterday.

In other words, there are many reasons for a possible drop off in spending. Those who returned to work (think "restaurants&quot don't get the unemployment bonus. On the other hand, a lot of people--more than the OP bothers to consider--had trouble getting the bonus. One state still hadn't gotten its system set up for it by mid-July. Those who are eligible will get it retroactively, just not in the time frame that's considered definitive.

Yeah. Everything's fuzzier than it's made out to be.

[Skittles]

8. everyone who can donate to food banks please do so now

they are going to REALLY need the help

[BeckyDem]

9. True, the poor can count on McConnell to withhold aid.

Food banks will be more strained than ever.

[Skittles]

10. I have doubled my contributions since the pandemic started

there are a lot of people in need now, thanks to the lack of leadership in America

[BeckyDem]

11. Awesome. We all need to help where we can.