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    Higher Food Prices Hit the Poor and Those Who Help Them

    Many households are being forced to adjust their shopping lists or seek assistance. But food banks, too, are feeling the pinch.With food prices surging, many Americans have found their household budgets upended, forcing difficult choices at the supermarket and putting new demands on programs intended to help.Food banks and pantries, too, are struggling with the increase in costs, substituting or pulling the most expensive products, like beef, from offerings. What’s more, donations of food are down, even as the number of people seeking help remains elevated.Even well-off Americans have noticed that many items are commanding higher prices, but they can still manage. It’s different for people with limited means.“Any time someone is low income, that means they’re spending a higher percentage on needs like food and housing,” said Diane Whitmore Schanzenbach, director of the Institute for Policy Research at Northwestern University. “When prices go up, they have less slack in their budgets to offset and they are quick to fall into hardship.”Before the run-up in prices — driven by supply-chain knots and rising labor costs — Robin Mueller would buy ground beef for meatloaf or hamburgers to serve once or twice a week for her family in Indianapolis. Now she can afford to cook it only once or twice a month.“You have to pick and choose,” said Ms. Mueller, who is 52 and disabled and lives with her daughter and her husband. “Before, you didn’t have to do that. You could just go in and buy a week or two’s worth of food. Now I can barely buy a week’s worth.”She has turned to food banks in Indianapolis for help, but they, too, are feeling the pinch.A case of peanut butter that was $13 to $14 before the pandemic now costs $16 to $19, according to Alexandra McMahon, director of food strategy for the Gleaners Food Bank of Indianapolis. Green beans that used to retail for $9 a case now sell for $14.“It has a big impact,” said Joseph Slater, chief operating officer of Gleaners. “It’s on our minds and it’s on the minds of our hungry neighbors as well.”In New York, Tynicole Lewis and her daughter, Lanese, depend on food stamps, but Ms. Lewis said that the aid runs out well before the end of the month now. Lanese is diabetic and Ms. Lewis serves as much protein and vegetables as possible — foodstuffs that have become especially pricey.“Food is expensive, and when the food stamps are gone, they’re gone,” said Ms. Lewis, who lives on the Lower East Side of Manhattan and earns $12,000 a year as a grocery store worker. “I have to wait.”She, too, depends on food pantries and has given up buying meat for the most part. “I eat a lot from the pantry, whatever they get,” Ms. Lewis said. “I like fish and I’ll treat myself when I get the food stamps.”While overall consumer prices in September were up 5.4 percent from a year ago, the cost of meat is up slightly more than that. Prices of staples like dairy products, fruits, grains and oils are also rising.Prices of meat, poultry, fish and eggs in U.S. cities are up 15 percent since the start of 2020, according to the Bureau of Labor Statistics.The run-up in costs at the supermarket comes even as gasoline prices have risen and natural gas and heating oil prices are predicted to be higher this winter, putting further pressure on those with low incomes.In addition, the mammoth assistance programs rolled out by the federal government in response to the pandemic in 2020 have largely lapsed. While some households built up savings from government payments, others have little room for extra expenses.The forces behind higher food prices have been building for some time and aren’t going away anytime soon, said Michael Swanson, chief agricultural economist at Wells Fargo.“People are shocked, but this is a slow-motion train wreck,” he said. “The scary thing is that food companies haven’t passed along all of their costs yet.”The warehouse at the Gleaners Food Bank.Kaiti Sullivan for The New York TimesHigher transportation and warehousing expenses lead the list of causes, along with rising labor costs at meat processing centers and other nodes in the food supply chain.To be sure, there are some winners as a result of the cost squeeze. While meat prices are up sharply for consumers, prices for cattle and other livestock haven’t moved as much. The result is buoyant profits for beef processors, Mr. Swanson said.“This is not going to go backwards anytime soon,” he added. “As soon as producers and retailers get these price increases, they are very sticky.”Behind the scenes, logistics expenses have jumped even more sharply than prices for foodstuffs, along with the costs of unglamorous items that few gave much thought to a few years ago.Understand the Supply Chain CrisisCard 1 of 5Covid’s impact on the supply chain continues. More

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    The Wedding Business Is Booming, a Short-Term Jolt to the Economy

    Meg Van Dyke, who runs a Pittsburgh wedding planning company, spent a recent weeknight frantically calling photographers for a May 2022 wedding. All eight who fit her couple’s criteria were fully booked.“I’ve never had a problem finding vendors before,” she said. “It’s absolutely booming.”Weddings are roaring back after a pandemic-induced slump, leading to booked-up venues, a dearth of photographers and rising prices on catered dinners. As demand picks up, it’s providing an additional jolt of spending to the U.S. economy.The race to the aisle is payback after a lost year of ceremonies. As lockdowns swept the nation, weddings slowed abruptly at the onset of the pandemic. Shane McMurray, founder of The Wedding Report, estimates that 1.3 million marriages took place in the United States last year, compared with the typical 2.1 million. Those were often “micro-weddings,” according to industry insiders, with just a handful of guests, if any were present at all.That’s turning around sharply. Weddings have not quite returned to normal for 2021, but they are quickly rebounding, and Mr. McMurray forecasts that next year they will jump to the highest level since the 1980s as engaged couples who have waited out a global pandemic finally tie the knot.Weddings Are Picking Up After a Pandemic SlumpThey are expected to jump sharply in 2022, to levels last seen nearly 40 years ago.

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    Weddings in the United States by Year
    Source: The Wedding ReportBy The New York TimesOnce that pent-up demand plays out, he expects that long-running trends like cohabitation without marriage will come to dominate.Many economists agree. “My instinct, immediately, is: This is not a marriage boom; this is a wedding boom,” said Jessamyn Schaller, an economist at Claremont McKenna College. She added that even with the short-term pop, there were likely to be fewer marriages than there would have been had the pandemic never happened.In other words, the wedding boom is probably a blip.Marriage rates have been dropping for decades, and hit a record low of 6.1 per 1,000 people in 2019, down from 8.2 in 2000. The decline has come alongside a drop in fertility, which also hit a new low before the onset of the coronavirus.What the wedding rebound could do is lay the groundwork for a brief post-pandemic baby bump, since couples often wait to exchange vows before they have children.Lyman Stone, a research fellow at the Institute for Family Studies, tracks fertility intentions in surveys and keeps a close eye on state-level birth data. A baby bust that took hold after the pandemic started already appears to be turning around, much faster than expected.“It is a rapid return to normal,” Mr. Stone said. The nascent wedding rush “probably means that we have a couple of years here where we have somewhat more positive fertility than was previously expected.”Workers erecting a tent for the wedding of Ariana Papier and Andrew Jenzer in Richmond, Mass., a town in the Berkshires.Ilana Panich-Linsman for The New York TimesMagdalena Mieczkowska, a wedding planner, has seen demand take off for events in 2022.Ilana Panich-Linsman for The New York TimesMike Moreno, a sous chef, preparing chickens for Ms. Papier’s wedding this month, which had been postponed from June 2020.Ilana Panich-Linsman for The New York TimesVendors are charging more for catered meals and cutlery rentals.Ilana Panich-Linsman for The New York TimesLest onlookers get too excited, Mr. Stone points out that what was expected was a slow decline in births..And Melissa Kearney, an economist at the University of Maryland, cautioned that the early signs of a fertility rebound playing out now could be a false signal, since the pandemic is still playing out and it will take time to see how birth trends shape up.But Adam Ozimek, chief economist at the freelance job site Upwork, thinks that many economists might be taking too dim of a view of the pandemic’s ability to put America on a different social trajectory. He hasn’t penciled in a big increase in marriage, but he does think that younger adults may change their ways in the wake of the crisis.People have saved a lot of money during the pandemic, thanks to long months at home, a rising stock market and repeated checks from the government. Remote work and the shift toward more work from home have introduced new geographic flexibility for many young adults.Millennials who had been delaying home buying, for instance, may now have an opening.“That’s a pretty good recipe for stronger household formation,” Mr. Ozimek said, referring to what happens when adults move out on their own or in with partners rather than parents or, in some cases, roommates. “You can afford to buy your own house, start your own family.”If that was to play out on any substantial scale, it would have big implications for the economy. Millennials are the nation’s largest generation. Any change in homeownership, marriage or fertility rates among this group would fuel spending on everything from outdoor grills and washing machines to day care.But it will take years to see whether the pandemic marked some sort of turning point for American family life.What is clear now is that it pushed back ceremonies, making for a short-term spending boost on cakes, china, dresses, hair, makeup and photographers — a source of bottlenecks, but also a welcome recovery for some vendors who saw business drop precipitously amid lockdowns.Ms. Van Dyke in Pittsburgh said brides with their hearts set on prized venues — like the downtown Omni William Penn Hotel — are setting their ceremony dates in 2023 as they compete for dates. In Washington, D.C., the sweet shop Baked & Wired went from selling tiny six-inch cakes during the pandemic to receiving more orders than it can accept for Razmanian Devil wedding cakes: tiered layers of lemon cake filled with raspberry jam and topped with buttercream.“It’s Tuesday, and they’re like, ‘Hey, can I get a wedding cake for Saturday?’” said Teresa Velazquez, the shop’s owner. “We’ve waited this long — let’s throw it together and get married.”Township Four Foristry & Home in Pittsfield, Mass., has temporarily closed its retail store to focus on a surge in wedding customers.Ilana Panich-Linsman for The New York TimesNathan Hanford, a co-owner of Township Four, assembling bouquets for a wedding.Ilana Panich-Linsman for The New York TimesThis season has been a welcome rebound for vendors whose business dropped during lockdowns.Ilana Panich-Linsman for The New York TimesJacquelyn Potter had been booked as the photographer for Ms. Papier’s postponed 2020 wedding. Now, surging demand is leading to booked-up venues, a dearth of photographers and rising prices.Ilana Panich-Linsman for The New York TimesMarvin Alexander, a makeup artist in New York City who decided to shift from the fashion industry to bridal during the depths of the pandemic, is also seeing lots of last-minute bookings, including from rescheduled weddings. The events are often more modest affairs, with smaller wedding parties and guest lists, in a nod to virus risks.“I’m starting to see a few people being more comfortable about 2022, even with the Delta variant strong on our heels,” Mr. Alexander said.On the other end of the spectrum, Magdalena Mieczkowska, a wedding planner, has seen demand in the Hudson Valley and Berkshires take off for big events in 2022. And clients are willing to spend: Her average was typically $100,000 per event, but now she’s seeing some weekends come in at $200,000 or more.“People were postponing, and now they have more savings,” she said. Plus, vendors are charging more for catered meals and cutlery rentals. “Everyone is trying to make up for their financial losses from the 2020 season.”Wedding industry experts said they expected demand to remain robust into 2023 before tapering back to normal, as new bookings vie for resources with delayed weddings like the one Ariana Papier, 31, and Andrew Jenzer, 32, held last weekend in Richmond, Mass., a town in the Berkshires.The couple had to cancel their original June 6, 2020, date, opting to elope instead, but rescheduled the event to Aug. 7, complete with signature cocktails (a bush berry paloma and an Earl Grey blueberry old-fashioned), a dance floor and s’mores.“We’re calling it a vow renewal and celebration,” Ms. Papier said just ahead of the ceremony, adding it was the couple’s third attempted venue, thanks to pandemic hiccups.“Third and best,” she said. “We are so excited.” More

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    Biden’s Proposals Aim to Give Sturdier Support to the Middle Class

    Perhaps the most striking difference between the middle class of 50 years ago and the middle class today is a loss of confidence — the confidence that you were doing better than your parents and that your children would do better than you.President Biden’s multitrillion-dollar suite of economic proposals is aiming to both reinforce and rebuild an American middle class that feels it has been standing on shifting ground. And it comes with an explicit message that the private sector alone cannot deliver on that dream and that the government has a central part to play.“When you look at periods of shared growth,” said Brian Deese, director of Mr. Biden’s National Economic Council, “what you see is that public investment has played an absolutely critical role, not to the exclusion of private investment and innovation, but in laying the foundation.”If the Biden administration gets its way, the reconstructed middle class would be built on a sturdier and much broader plank of government support rather than the vagaries of the market.Some proposals are meant to support parents who work: federal paid family and medical leave, more affordable child care, free prekindergarten classes. Others would use public investment to create jobs, in areas like clean energy, transportation and high-speed broadband. And a higher minimum wage would aim to buoy those in low-paid work, while free community college would improve skills.That presidents pitch their agendas to the middle class is not surprising given that nearly nine out of 10 Americans consider themselves members. The definition, of course, has always been a nebulous stew of cash, credentials and culture, relying on lifestyles and aspirations as much as on assets.But what cuts across an avalanche of studies, surveys and statistics over the last half century is that life in the middle class, once considered a guarantee of security and comfort, now often comes with a nagging sense of vulnerability.Salaries for teachers, hospital workers and child care providers are determined largely by the government, and do not necessarily reflect their value in an open market.Philip Keith for The New York TimesBefore the pandemic, unemployment was low and stocks soared. But for decades, workers have increasingly had to contend with low pay and sluggish wage growth, more erratic schedules, as well as a lack of sick days, parental leave and any kind of long-term security. At the same time, the cost of essentials like housing, health care and education have been gulping up a much larger portion of their incomes.The trend can be found in rich countries all over the world. “Every generation since the baby boom, has seen the middle-income group shrink and its economic influence weaken,” a 2019 report from the Organization for Economic Cooperation and Development concluded.In the United States, the proportion of adults in the middle bands of the income spectrum — which the Pew Research Center defines as roughly between $50,000 and $150,000 — declined to 51 percent in 2019 from 61 percent 50 years ago. Their share of the nation’s income shrank even more over the same period, to 42 percent from 62 percent.Their outlook dimmed, too. During the 1990s, Pew found rising optimism that the next generation would be better off financially than the current one, reaching a high of 55 percent in 1999. That figure dropped to 42 percent in 2019.The economy has produced enormous wealth over the last few decades, but much of it was channeled to a tiny cadre at the top. Two wage earners were needed to generate the kind of income that used to come in a single paycheck.“Upper-income households pulled away,” said Richard Fry, a senior economist at Pew.Corrosive inequality was just the beginning of what appeared to be a litany of glaring market failures like the inability to head off ruinous climate change or meet the enormous demand for affordable housing and health care. Companies often channeled profits to buy back stock instead of using them to invest or raise wages.The evidence was growing, liberal economists argued, that the reigning hands-off economic approach — low taxes on the wealthy, minimal government — was not producing the broad-based economic gains that sustained and grew the middle class.“The unregulated economy is not working for most Americans,” said Joseph Stiglitz, a Nobel laureate in economics. “The government has an important role,” he emphasized, in regulating the private sector’s excesses, redistributing income and making substantial public investments.Skeptics have warned of government overreach and the risk that deficit spending could ignite inflation, but Mr. Biden and his team of economic advisers have, nonetheless, embraced the approach.“It’s time to grow the economy from the bottom and middle out,” Mr. Biden said in his speech to a joint session of Congress last week, a reference to the idea that prosperity doesn’t trickle down from the wealthy, but flows out of a well-educated and well-paid middle class.He underscored the point by singling out workers as the dynamo powering the middle class.“Wall Street didn’t build this country,” he said. “The middle class built the country. And unions built the middle class.”Of course, the economy that lifted millions of postwar families into the middle class differed sharply from the current one. Manufacturing, construction and mining jobs, previously viewed as the backbone of the labor force, dwindled — as did the labor unions that aggressively fought for better wages and benefits. Now, only one out of every 10 workers is a union member, while roughly 80 percent of jobs in the United States are in the service sector.And it is these types of jobs, in health care, education, child care, disabled and senior care, that are expected to continue expanding at the quickest pace.Most of them, though, fall short of paying middle-income wages. That does not necessarily reflect their value in an open market. Salaries for teachers, hospital workers, lab technicians, child care providers and nursing home attendants are determined largely by the government, which collects tax dollars to pay their salaries and sets reimbursements rates for Medicare and other programs.They are also jobs that are filled by significant numbers of women, African-Americans, Latinos and Asians.“When we think about what is the right wage,” Mr. Stiglitz asked, “should we take advantage of discrimination against women and people of color, which is what we’ve done, or can we use this as the basis of building a middle class?”Mr. Biden’s spending plans — a $2.3 trillion infrastructure package called the American Jobs Plan, and a $1.8 trillion American Families Plan that concentrates on social spending — aim to take account of just how much the work force and the economy have transformed over the past half-century and where they may be headed in the next.The president’s economic team took inspiration from Franklin D. Roosevelt’s New Deal and the public programs that followed it.After World War II, for instance, the government helped millions of veterans get college educations and buy homes by offering tuition assistance and subsidized mortgages. It created a mammoth highway system to undergird commercial activity and funneled billions of dollars into research and development that was used later to develop smartphone technology, search engines, the human genome project, magnetic resonance imaging, hybrid corn and supercomputers.Mr. Biden, too, wants to fix roads and bridges, upgrade electric grids and invest in research. But his administration has also concluded that a 21st-century economy requires much more, from expanded access to high-speed broadband, which more than a third of rural inhabitants lack, to parental leave and higher wages for child care workers.The basic necessities that make it possible for parents to fully participate in the work force, like child care and parental leave, are still missing, said Betsey Stevenson, an economics professor.Gabriela Bhaskar for The New York Times“We’ve now had 50 years of the revolution of women entering the labor force,” and the most basic necessities that make it possible for parents to fully participate in the work force are still missing, said Betsey Stevenson, a professor at the University of Michigan and a former member of the Obama administration’s Council of Economic Advisers. She paused a few moments to take it in: “It’s absolutely stunning.”Right before the pandemic, more women than men could be found in paying jobs.Ensuring equal opportunity, Ms. Stevenson noted, includes “the opportunity to get high-quality early-childhood education, the opportunity to have a parent stay home with you when you’re sick, the opportunity for a parent to bond with you when born.”When it comes to offering this type of support, she added, “the United States is an outlier compared to almost every industrialized country.”The administration also has an eye on how federal education, housing and business programs of earlier eras largely excluded women, African-Americans, Asians and others.In the Biden plan are aid for colleges that primarily serve nonwhite students, free community college for all, universal prekindergarten and monthly child payments.“This is not a 1930s model any more,” said Julian E. Zelizer, a political science professor at Princeton University.And it’s all to be paid for by higher taxes on corporations and the top 1 percent.Passage in a sharply polarized Congress is anything but assured. The multitrillion-dollar price tag and the prospect of an activist government have ensured the opposition of Republicans in a Senate where Democrats have the slimmest possible majority.But public polling from last year showed widening support for the government to take a larger role.“What is so remarkable about this moment is this notion that public investment can transform America, that these are things government can do,” said Felicia Wong, president of the left-leaning Roosevelt Institute. “This is fundamentally restructuring how the economy works.”The middle class today differs in significant ways from the middle class of 50 years ago and perhaps the most striking is a loss of confidence.Evan Jenkins for The New York Times More