Fast food is no longer affordable for low-income Americans – The Week

Economic Pressures on Food Affordability and its Impact on Sustainable Development Goals

Recent economic trends indicate a significant increase in the cost of fast food in the United States, rendering it progressively unaffordable for lower-income populations. This development poses direct challenges to the achievement of several key Sustainable Development Goals (SDGs), particularly those concerning poverty, hunger, and inequality.

Analysis of Rising Costs and Consumer Impact

Factors Driving Price Increases

The escalation in fast-food prices is attributed to a combination of economic factors. An analysis reveals the primary drivers to be:

• Increased operational costs for restaurant essentials, such as beef.
• Higher labor costs associated with rising salaries.
• The economic impact of government policies, including tariffs.

A notable example is the average menu price at McDonald’s, which saw an approximate 40% increase between 2019 and 2024.

Implications for Sustainable Development Goals

The inability of consumer income to keep pace with the rising cost of living, including food, rent, and childcare, has profound implications for societal well-being.

1. SDG 1 (No Poverty) and SDG 2 (Zero Hunger): As fast food ceases to be an accessible, low-cost option, food security for low-income households is threatened. This financial strain exacerbates poverty and limits access to affordable sources of sustenance.
2. SDG 10 (Reduced Inequalities): The price hikes disproportionately affect lower-income Americans, who allocate a larger portion of their income to essential goods. This widens the economic gap and undermines efforts to reduce inequality.

Broader Economic Trends and Social Consequences

The “K-Shaped” Economy and Deepening Inequality

The current economic landscape is characterized as “K-shaped,” signifying a divergent recovery where high-earning individuals and corporations prosper while lower-income groups experience economic decline. This trend is evidenced by:

• The financial success of global luxury conglomerates, which have reported better-than-expected quarterly earnings.
• The concurrent economic struggles faced by demographics such as adults aged 25 to 30, who contend with unemployment, student loan debt, and slower real wage growth.

This economic bifurcation is a direct contradiction to the principles of SDG 10 (Reduced Inequalities), as it concentrates wealth and opportunity among a select few.

Impact on Social Cohesion and Economic Growth

The persistent issue of affordability fosters widespread public discontent and erodes confidence in the economy. This can lead to negative social outcomes, including workplace resentment and social instability. Such conditions challenge the objective of SDG 8 (Decent Work and Economic Growth), which calls for inclusive and sustainable economic growth that promotes productive employment and decent work for all.

Corporate and Political Responses

Industry Adjustments

In response to a decline in patronage from lower-income customers, several fast-food corporations, including McDonald’s, Chipotle, Burger King, and Wendy’s, have begun to reintroduce value-oriented menus. These initiatives are an attempt to regain clientele by offering more affordable options.

Political Discourse

The issue of affordability has become a central point in political discourse. At the McDonald’s Impact Summit, President Donald Trump addressed the “affordability crisis,” while reports from The Independent noted that tariffs implemented during his administration contributed to the price hikes affecting consumers.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty

   The article directly addresses the economic struggles of “lower-income Americans” who are being “priced out” of previously affordable food options. This connects to SDG 1, which aims to end poverty in all its forms, as the rising cost of living and stagnant incomes push vulnerable populations into greater financial hardship.

2. SDG 2: Zero Hunger

   While not about famine, the article touches upon food accessibility, a key component of SDG 2. It highlights that fast food was “once a cheap and accessible source of food” for many. The inability of lower-income individuals to afford this food source raises concerns about their access to sufficient and affordable food.

3. SDG 8: Decent Work and Economic Growth

   The article links the economic strain to issues of employment and wages. It mentions “slower real wage growth” and “unemployment” as significant challenges, particularly for young adults. This relates to SDG 8’s goal of promoting sustained, inclusive economic growth and decent work for all.

4. SDG 10: Reduced Inequalities

   This is a central theme of the article. It explicitly states that “the gap between the wealthy and the poor is widening” and describes the U.S. economy as “K-shaped,” where high-earners thrive while others “fall further down the economic ladder.” This directly addresses the core focus of SDG 10, which is to reduce inequality within and among countries.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 1: No Poverty

  • Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. The article’s focus on “lower-income Americans” struggling with the high cost of living directly relates to the challenge of reducing poverty within a national context.

• SDG 2: Zero Hunger

  • Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations… to… sufficient food all year round. The article discusses how rising prices are making a previously “accessible source of food” unaffordable for “lower-income customers,” which is a direct challenge to ensuring food access for the poor.

• SDG 8: Decent Work and Economic Growth

  • Target 8.5: By 2030, achieve full and productive employment and decent work for all… and equal pay for work of equal value. The article points to “unemployment” and “slower real wage growth” as key problems, indicating a failure to achieve productive employment and fair wages for certain segments of the population.

• SDG 10: Reduced Inequalities

  • Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average. The description of a “K-shaped” economy, where the wealthy do better while others fall behind, is the antithesis of this target.
  • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… economic or other status. The article illustrates the economic exclusion of lower-income groups who can no longer afford basic goods and services like fast food.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several direct and implied indicators:

• Price Inflation of Consumer Goods: The article provides a specific data point: “The average price of a menu item at McDonald’s increased by approximately 40% between 2019 and 2024.” This serves as a direct indicator of the rising cost of living affecting affordability.
• Real Wage Growth: The article explicitly mentions “slower real wage growth” as a problem facing young people. This is a key economic indicator used to measure whether incomes are keeping pace with inflation.
• Unemployment Rate: “Unemployment” is cited as a headwind for the 25-30 age group. The unemployment rate, particularly for specific demographics, is a standard indicator for measuring economic health and progress towards SDG 8.
• Income and Wealth Disparity: The concept of a “K-shaped” economy, where the “high-earner cohort is doing better and better while others fall further down the economic ladder,” is a qualitative description of indicators that measure income inequality, such as the Gini coefficient or the income share of the top 10%.

4. Table of SDGs, Targets, and Indicators

Source: theweek.com