As the economy limps along and disposable income shrinks, many people are eating out at restaurants less than before. Some are even going as far as using the local dumpster to find their next meal.
A recent article in the New York Times shows a young man in Spain rummaging through a dumpster for food.
It’s a heart-wrenching picture. The accompanying article paints a bleak picture of Spain’s economy.
As Spain’s austerity measures pinch the working class, many Spaniards are turning to alternative measures to supply their daily bread.
The phenomenon is not new, but dumpster diving is no longer the dominion of drifters and homeless vagrants. Those interviewed in the NY Times article were among the working-class. Some had even held white-collar jobs.
But as the after-effects of the “Great Recession” continue to linger throughout the world…
…and as world economies continue to crumble and tumble, expect to see much more of this in the coming months and years.
“Freeganism” – Dumpster Diving By Choice
Before we go any further, though, we need to clarify a few things.
We aren’t talking here about people who choose to dumpster dive as a lifestyle.
Yes (believe it or not), one kind of dumpster diving has actually become a hot new trend in America.
They’ve even given themselves hip new name: “freegans”.
These people raid dumpsters for a variety of reasons. Some are concerned about the environment and view dumpster diving as a great way to “recycle.”
Others are politically-motivated and consider freeganism to be a form of anti-consumerist political protest.
Still others do it because they want to live more simply.
And almost all freegans consider dumpster diving a great way to save money on groceries…
…or other household items.
Michelle Obama – in her speech at the Democratic National Convention earlier this month –claims that the only piece of furniture she and President Obama had in their apartment early on in their marriage was a coffee table that Barack pulled out of a dumpster.
Yup. The President of the United States is a former dumpster diver!
But now, with the economy tightening up, the ranks of the “freegans” are growing…
And here’s one thing you can count on: thousands upon thousands of people will break out their boots, rubber gloves and flashlights tonight and jump into dumpsters looking for food (or anything else of value).
But there is a darker side to the story, of course.
You see, even though many view freeganism as a chic, counter-culture movement…
The cruel reality is that thousands of people who have no desire to jump into a dumpster will be…
Forced Into Freeganism
In Spain, out-of-control unemployment is the culprit.
The New York Times article cited a 50% unemployment rate among young Spanish adults as the main reason for the rise in dumpster diving.
Even the “official” public unemployment rate in Spain is a jaw-dropping 23%.
For the unemployed, underemployed and the soon-to-be-laid-off, dumpster diving is not a matter of style or choice…
It’s a Matter of Survival
One Spanish city has reacted to the problem of scavenging by installing locks on supermarket trash bins.
Eduardo Berloso, the city official who proposed the locks, claims he didn’t make the suggestion to cut off these poor people’s last hope of subsistence.
He said it was a public health precaution.
He went on to say, “It’s against the dignity of these people to have to look for food in this manner.”
It may be beneath their dignity, but many see it as the only way to survive.
In early July, Spanish leaders announced another round of austerity measures to rein in over-spending and to balance their budget.
Spanish Prime Minister Mariano Rajoy said in his speech announcing the reforms, “These measures are not pleasant, but they are necessary. Our public spending exceeds our income by tens of billions of euros.”
Necessary? Probably.
But many of the announced austerity measures hit the poorest like a sucker punch to the gut.
For example, the Spanish parliament slashed unemployment benefits and then added a 3-percentage point hike in the main Value Added Tax (VAT) rate.
VAT is a European Union mandated tax on goods and services. It is what most Americans would call “sales tax.”
The most recent rate hike brought Spain’s VAT to 21 percent!
The increase included a 2 percent hike on food, which affects the poor more severely than any other group.
Violent Reaction to Austerity Measures
The stringent belt-tightening on government spending has brought on social unrest and unleashed a mob of angry protestors.
In July, anti-austerity protests in Madrid turned violent. Police fired rubber bullets at protesters who responded by pelting the officers with stones, fruit, bottles and firecrackers.
Then after a couple months of relative quiet, protesters re-emerged on the streets of Madrid on Tuesday (September 24).
Reports cited 6,000 angry Spanish citizens marching before the Spanish Parliament.
Once again, some of the protestors became violent. News reports indicate that police beat back demonstrators with batons and fired rubber bullets on the crowd.
It’s Only Going to Get Worse
As bad as all this seems, this is likely just the start.
The international charity organization, Caritas, has cited an alarming increase in the number of meals it is serving over the last four years. It’s own study indicates that 22 percent of Spaniards are living at or below the poverty level.
As wages are slashed, jobs are lost, and the economy ekes by on life-support, expect those numbers to rise. Significantly.
And Spain’s not alone.
Greece has already been digging itself out of a hole for a while now.
And several other EU nations may soon be forced to take actions like Greece and Spain.
As they do, expect unemployment levels, poverty levels – and forced dumpster diving levels to increase.
Finally, to throw a little salt on the fresh, throbbing wound …
Food Prices Are About to Explode
You see, because of the severe drought in the U.S. this past summer, food prices are set to soar in 2013. And not just in the U.S.
A recent study published by the investment bank Rabobank reports that farmers around the globe have begun a mass slaughter of their pig and cattle herds.
The reason? They cannot afford the cost of feed.
This initial glut of meat on the market will likely lower food costs through the end of the year.
But the report claims that by next year there won’t be enough animals to meet expected demand … and prices will soar.
It won’t just be in the price of meat, either. The drought will affect food prices across the board.
The United Nations Food and Agriculture Organization estimates that average worldwide food prices will rise 14.1% by next summer, far outpacing cost-of-living raises in salaries, unemployment benefits, and welfare programs.
Which means more people will likely be pushed to the limit, and forced to make difficult choices.
Protect Yourself from Forced Freeganism
We can’t fix all the social and financial problems in the world.
What we do instead is provide individuals with the knowledge, resources, and connections to weather through the toughest of economic conditions.
Some people may throw up their hands and say it’s too late to do anything.
Other’s may feel they don’t have enough money to work with to make an impact.
We say those are just excuses. Sorry excuses. And they’ll likely leave you destitute.
Every effort you make to protect yourself every step forward to creating a financial fortress around your own hard-earned wealth every little positive change you put in motion – RIGHT NOW – will pay multiple dividends down the road and may save you from the fate of forced freeganism.
Austerity measures are painful. Just ask the folks in Greece and Spain.
Sometimes, they may be unavoidable at a government level. But don’t let yourself be forced into it at the personal level.Take action. Use the valuable free information we provide in these Newsletters to make positive changes in your life.
Do your own research.
Choose prosperity for you and your family.