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Recession-Weary Americans Struggle With Basic Food, Shelter, Utility and Medical Costs

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ST. PAUL, Minn. (September 17, 2009) – A recession that has seen an unprecedented collapse of financial institutions, ongoing home foreclosures, high unemployment, and bankruptcies in the auto industry has many Americans struggling to pay for basic necessities. A national poll of more than 4,000 adults shows American families have cut spending, taken in friends or relatives and lent or given money to those in need. Commissioned by the Northwest Area Foundation, the poll shows two-thirds of Americans see more people struggling to make ends meet than a year ago, mostly because of circumstances they believe are beyond their control.

Sixty-one percent of Americans say they’ve had to reduce spending. More than half, 57 percent, report the change in spending will be permanent. In the past year, families report: 

• Twenty-seven percent had problems paying for basic necessities like their mortgage, rent or heating.
• Fifty-three percent say they’ve cut down on the amount they’ve spent on food.
• Forty-four percent have cut back on saving for retirement.
• Twenty-four percent have had a friend or family member stay with them due to lack of funds.
• Thirty-two percent have had trouble affording medical care.

 “These poll numbers reflect the vulnerability brought on by an economy that provides few incentives for families trying to build enduring personal assets,” said Andrea Levere, president, CFED. “As we work to recover from this recession and build a stronger economy, local and state officials have the opportunity to support incentives that encourage financial security, such as matched savings programs, that can benefit the low- and middle- income families who need help most.”

Compounding those challenges, half of all Americans, 49 percent, say they would not know where to go in their community for help, and 52 percent say they are not familiar with government services such as food stamps. For the second year in a row, people said they worry their paychecks won’t be enough to meet their bills, a response that may be related to reports of job insecurity:

• Twenty-seven percent say someone in their household has been laid off or lost a job.
• Thirty-eight percent say someone in their household has had their work hours cut.

“Northwest Area Foundation’s critically-important survey further confirms the devastating current scenario that we are far too often seeing and experiencing in all of our Catholic Charities agencies around the country,” said Rev. Larry Snyder, President and CEO of Catholic Charities USA.  “NWAF and CCUSA share a strong bond in our focus on the poor and helping them achieve a greater level of prosperity.  These times may test our human and financial resources, but they do not weaken our will—or our resolve—in the work to reduce poverty in America.”

An overwhelming majority of Americans also reported:

• It takes at least $40,000 a year to meet basic needs of a family of four, which is nearly twice the federal poverty level of $21,834 – the fourth year in a row that a majority of respondents has expressed this belief.
• Sixty-three percent say two adults earning $10 per hour is not enough to make ends meet for a family of four.

“Americans told us that things are even tougher for their families than the official unemployment and poverty rates suggest,” said Kevin F. Walker, president and CEO of the Northwest Area Foundation. “They also say elected officials need to join them in finding solutions. Public policy is a critical tool in moving low-income people – and our nation – toward prosperity that lasts.”

Fifty-one percent of respondents said the government is doing too little to help. Their priorities for lawmakers are ranked as follows: attracting and keeping well-paying jobs, making medical care more accessible, making college and vocational education more affordable, and making sure there is a safety net for renters and homeowners. Overwhelmingly Americans said that when they vote, they will think about how well the candidate would help those struggling to make ends meet.

Despite the tough times, American resolve is strong. Fifty-six percent say they are hopeful about the national economy. Eighty-four percent say they believe the number of people struggling to get by in their community can be reduced significantly. Eighty percent say they are willing to volunteer to help, and 56 percent say someone in their household has gone so far as to lend or give money to someone who was in need. 

For the full report, and to download toplines, policy briefs, executive summaries and charts, visit www.nwaf.org.

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The Northwest Area Foundation is dedicated to supporting efforts by the people, organizations and communities in Minnesota, Iowa, North Dakota, South Dakota, Montana, Idaho, Oregon and Washington to reduce poverty and achieve sustainable prosperity. These states were served by the Great Northern Railway, founded by James J. Hill. In 1934, Hill’s son Louis W. Hill established the Foundation. To learn more, visit www.nwaf.org.

The Foundation commissioned Lake Research Partners (LRP) to conduct a national survey to explore local perceptions of the struggle to make ends meet in one’s own community, attitudes toward the roles of local elected officials, and ways in which to address this struggle. The telephone survey was conducted among 4,004 Americans age 18 and older, from June 18 – July 13, 2009. A total of 800 interviews were conducted nationally, and oversamples of 400 interviews were conducted in each of the following eight states: Minnesota, Iowa, North Dakota, South Dakota, Montana, Idaho, Oregon and Washington. The oversamples were weighted down to reflect their true proportion in the country. The margin of error for the national results is + 3.5 percentage points. Previous national polls were released in March 2006, March 2007 and April 2008.[1]

[1] The 2005-2006 survey included a national sample of 800 interviews, with oversamples of 200 interviews in each of eight states. The 2007, 2008 and 2009 surveys were conducted among a national sample of 800 adults, with oversamples of 400 interviews in each of eight states.