GoFundMe CEO Says The Economy Is So Bad That People Are Trying To Raise Money Just To Buy Groceries
Crowdfunding just to put food on the table is heartbreaking.
Daniel Wischenbarth from Getty Images Signature | Canva The current state of the economy has put many people in a financial pickle. The cost of living is rising faster than wages, making basic necessities harder to afford. When housing takes up almost the entirety of a person's pay, other necessities fall by the wayside. Food shouldn't be one of those things, but sadly, groceries are becoming luxury items.
During an interview on the Opening Bid Unfiltered podcast with Brian Sozzi, the CEO of GoFundMe said he's noticed a lot more crowdfunding on the platform for buying food. Tim Cadogan pointed out that it's proof of just how bad the economy has gotten.
The CEO of GoFundMe, Tim Cadogan, said people are trying to raise money just to buy groceries.
Cadogan admitted that the clearest indication that the economy is bad is the simple fact that more Americans are launching GoFundMe campaigns to just buy groceries. He noticed a significant rise in campaigns for everyday essentials, like groceries, compared to the one-off emergencies that people initially used the crowdsourcing platform for.
Now, it's seemingly all about survival. "Basic things you need to get through life [have] gone up significantly in the last three years in practically all our markets,” Cadogan said.
This has become the new reality for many Americans. They are dealing with inflation combined with stagnant wages. It's forcing many to prioritize necessities when allocating their pay. No matter how many hours people work, how many side hustles they have, or even how much they save, it's still not enough to feel secure about their finances.
Many Americans are going into debt just to afford groceries.
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According to research from the Urban Institute, most families dipped into their savings or turned to credit cards, buy now, pay later installment programs, or payday loans to pay for groceries in 2023. Things are only getting worse. Among those who use their credit cards to buy groceries, just 33.4% repaid the charges in full. 20% paid less than the full balance but always made the minimum payment, and 7.1% did not make the minimum payments.
The Urban Institute found that certain policies could help alleviate the burden of grocery prices for many people. Some of those measures include increasing SNAP and other social safety net supports; expanding financial options to help families in need, and making credit counseling and debt-management services more broadly available. Unfortunately, in the current political climate, many Americans have lost hope that our government genuinely cares about our well-being.
When the majority of people in this country are struggling with food insecurity, it says more about the lack of leadership than it does about its citizens. Families shouldn't have to be relying on GoFundMe campaigns just to buy milk, eggs, and bread. The solutions to fix this are more than possible, which makes it all the more frustrating.
Nia Tipton is a staff writer with a bachelor's degree in creative writing and journalism who covers news and lifestyle topics that focus on psychology, relationships, and the human experience.
