Sticker Shock at the Grocery Store: The Impact of Rising Food Costs on Denver’s Working Class
Sep 7
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Lately, I’ve been experiencing something many of my constituents in Colorado’s Congressional District One are likely familiar with: sticker shock at the grocery store. As a blue-collar worker juggling two jobs, I’m used to managing my budget carefully. But recently, it feels like every trip to the store costs more and more. As a single person, I never used to track my grocery spending that closely, but now it’s becoming a major concern—and if this is happening to me, what are families with children doing to get by?
I’m not talking about luxury items here; I’m talking about food—a necessity. Yet, it feels like it’s eating up a larger chunk of my paycheck every month. So, I did what I do best: I researched. And what I found was eye-opening.
Rising Grocery Costs: 2022 vs. 2024
In 2022, grocery prices in Colorado surged due to inflation, and now, by 2024, families are spending 1.6% more on their annual grocery bills than they did two years ago. This increase might sound small, but when you’re already stretched thin, every percentage point matters. Imagine being a family of four, where groceries now make up 14.5% of your budget, compared to 13.8% in 2022. With wage growth of just 4%, it’s clear that families are being squeezed from all sides.
While some might say a 1.6% rise in grocery bills over two years isn’t catastrophic, for many in our community, it’s adding up. And here’s what makes this even more concerning: the rising costs of groceries are part of a broader economic challenge. Groceries are not a luxury we can cut back on. Food is essential, and families should not have to choose between putting meals on the table and meeting other critical expenses like healthcare, education, or savings.
Inflation Forecast Based on Current Government Spending and Debt
The rising cost of food is connected to broader economic forces, particularly inflation driven by government spending. As of September 2024, U.S. government debt is projected to reach nearly 99% of GDP, creating a significant burden on the economy. Large federal spending, while intended to support the economy during crises like the pandemic, has also fueled inflation. In 2022, government spending was responsible for 42% of inflation, far outpacing other factors such as supply chain issues and consumer demand.
The high cost of servicing the national debt, coupled with rising interest rates, is putting increased pressure on the government to raise taxes. The Congressional Budget Office (CBO) projects that interest payments on the debt will represent over 3.1% of GDP by 2024, with even higher projections in the years to come. This growing financial obligation will almost certainly necessitate higher taxes to meet government revenue needs.
How Increased Taxes Could Affect Grocery Prices
Higher taxes won’t just hit your personal income—they will affect nearly every part of the supply chain, ultimately driving up food costs. Let’s break down how this works:
Corporate Taxes: If corporate taxes are raised to help finance the growing debt, companies will pass these costs onto consumers. Food manufacturers and grocery stores are no exception. As their tax burden rises, they’ll increase prices on goods to maintain profitability.
Fuel and Transportation Taxes: Groceries travel long distances before they reach your local store, and transportation costs are a key factor in food prices. When taxes on fuel, shipping, or freight services increase, those costs get passed along to the consumer. U.S. producers have already been facing rising freight costs, which are up 35% over the last year.
Excise Taxes: Indirect taxes on specific goods, such as energy or agricultural products, also influence food prices. When the government imposes or raises excise taxes on inputs essential for food production—such as fuel or packaging materials—the costs are passed through the supply chain and show up in your grocery bill.
Bad Management Is Failing Us
This is where I want to be blunt: good companies get rid of bad managers, and we should treat our government the same way. Families in our district are feeling financially helpless, and it’s unacceptable that the cost of basic necessities like food has been allowed to climb so high. Starving people—or even just people struggling to make ends meet in one of the richest countries in the world—is a sign of bad management. We can do better.
At the end of the day, families in our district are feeling financially helpless, and it’s unacceptable that the cost of basic necessities like food has been allowed to climb so high. The rising costs of government mismanagement, unchecked spending, and the looming debt crisis are not just numbers—they’re affecting your grocery bill. When the federal government doesn’t balance its books, it’s the working class, families, and people like you and me who suffer the most.
As I continue my campaign, I promise to fight for solutions to help ease the burden on families and individuals who are facing this crisis. Because when our government fails to manage the economy effectively, it’s the working class, the families, and people like you and me who suffer the most.
We deserve better leadership—leadership that ensures that hard work is rewarded, not eroded by inflation.
The following websites were used in researching this blog:
www.consumeraffairs.com/finance/cost-of-groceries-by-state.html
https://247wallst.com/state/how-much-food-costs-in-colorado-compared-to-the-nation/
www.bls.gov/regions/mountain-plains/news-release/consumerpriceindex_denver.htm
https://finmasters.com/average-cost-of-groceries/
https://econofact.org/the-rising-burden-of-u-s-government-debt
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