More than 11.4 million households collected free groceries in early April, up 15% from a year ago, according to data from the Census Bureau.As economists and investors scour data on inflation, jobs, housing, banking and other bellwether indicators to determine whether the US is headed for a recession, a visit to the nation’s largest food-bank warehouse offers some ominous clues.
More than 11.4 million households collected free groceries in early April, up 15% from a year ago, according to data from the Census Bureau. Such post-Covid-19 demand for free food is “not a good signal” for the economy “and perhaps an indicator of an impending recession,” said John Lowrey, a business professor at Northeastern University whose research focuses on food bank management and public health.
Michael McKee, CEO of the Blue Ridge Area Food Bank, which serves 25 counties astride the Appalachian Trail in Virginia, said Covid-19 emergency assistance masked underlying economic realities. According to the latest available figures from the Bureau of Labor Statistics, inflation has outpaced wage gains since March 2020.
The SNAP government program is by far the largest method of feeding the hungry in the US. Food banks and pantries account for about a tenth as many meals distributed, but they are still the second-largest provider and therefore serve as a critical part of the social safety net. Houston Food Bank CEO Brian Greene, who has worked in the industry since 1988, said it is difficult to make comparisons over time because demand has historically outstripped supply. He said the Houston Food Bank, the nation’s largest by volume, is distributing less food this year than last but that is because cash and food donations are down.Pantries supplied by the Blue Ridge food bank in Virginia also reported recent spikes.