Decline in charitable contributions
High gas prices have had a trickle down effect on our entire economy as a whole. They’ve caused food prices to soar, and have made transportation of goods all the more pricey which means companies are laying off and/or firing workers to increase their profit margins or break even.
Everyone is still paying more for gas per gallon, way more than we were last year at this time (thank goodness for gas reward cards to help lessen the impact of those costs). Even though gas is now as low as $3.49 per regular gallon of gasoline in some cities, we are still experiencing pain at the pump and coupled with job loss and high food prices, not only our poorest citizens suffering worse than ever, but now included are what used to be middle and upper class citizens in some areas.
According to a LA Times report dated July 28, 2008, “demand for free groceries is at the highest level in recent memory this summer as the sagging economy has hit not only the poor, but also middle- and upper-class families.”
Many can definitely sympathize with this situation but do not know what it is like to be in a position of being in need. A major reason we are seeing a decline in charitable contributions is because middle and upper class families are really having to watch where their money is going each payday. Though we are saving on gas more than a few months ago, food prices are still high and paychecks haven’t gone up. Where consumers used to have funds left to “play” and “give”, many are now finding themselves on the brink of ending up like those middle and upper class citizens, as reported in the LA Times…a hair away from standing in line at a food bank.