Graphic Truth: Food insecurity and poverty in the US & Canada

Luisa Vieira

Poverty and food insecurity, exacerbated by COVID and the soaring cost of living, plague both the US and Canada. At the height of the pandemic, school closures in the US deprived many children of their vital food source: free school lunches. This, coupled with job losses and inflation, plunged many into food insecurity. The economic outlook has still not improved for these families, thanks to the high rate of inflation, which is keeping grocery and gas prices elevated.

In Canada, a cost-of-living crisis has seen demand for food banks surge, with the 2023 Hunger Count by Food Banks Canada revealing a 32% rise in year-on-year visits in 2022. Parents made up the largest share of food bank users. Like in the US, they are grappling with exorbitant housing, food, and fuel costs, compounded by childcare expenses. A record 1.9 million Canadians sought assistance from food banks in just March 2023 alone.

How has US food insecurity increased, but not poverty? The poverty line, defined by Lyndon B. Johnson in 1963, hasn't been reassessed since. Back then, poverty was defined as anyone spending a third of their income on a “bare essentials diet.” But thanks to globalization and agricultural advances, an average American now spends only one-eighth of their income on food.

Instead, housing and childcare are the biggest budget busters. An American renter making $30,000 likely allocates over half their income to housing and may struggle with food insecurity. But, given the 1960s “poverty” guidelines, they need to earn nearly three times less, or $12,880, to be considered poor.

More from GZERO Media

Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland gestures during a press conference before delivering the fall economic update in Ottawa, Canada, November 21, 2023.
REUTERS/Blair Gable/File Photo

Canada’s finance minister and deputy prime minister, Chrystia Freeland, resigned from cabinet Monday morning over differences with Prime Minister Justin Trudeau on how Canada should deal with incoming US President Donald Trump.

This footage, published Sunday (29May2022) shows the Frigate Admiral of the Fleet of the Soviet Union Gorshkov conducts a test firing of Zircon hypersonic cruise missile in the Barents Sea. According to the Russian Ministry of Defence, the test firing hit a target in the White Sea. It was part of a test of new Russian weapons. Russian officials claimed the missile successfully hit a sea target located at a distance of about 1,000 km. Where: Russian Federation
Credit: Ministry of Defence of the Russian Federation/Cover Images via Reuteers

On Monday, Russia’s President Vladimir Putin warned that he might lift self-imposed restrictions on Russia’s development of short- and medium-range missiles, while warning that the West was pushing on “a red line we can’t step back from.”

French Gendarmerie forces cross a damaged area in the aftermath of Cyclone Chido, in Mayotte, France December 15, 2024.
Gendarmerie Nationale/Handout via REUTERS

France rushed aid to Mayotte on Monday, with death estimates running into the thousands after the most powerful cyclone in nearly a century devastated the small Indian Ocean island overnight.

As the macro landscape evolves and new market dynamics emerge, corporations and investors must understand the trends driving capital allocation, sector shifts, and emerging opportunities to position themselves for success. While there is growing optimism in the market, critical questions persist about geopolitical risks, the impact of tariffs and trade policies, the long-term outlook for the USD, and how to interpret the economic narratives and structural changes likely to shape the immediate future. Get insights from RBC Capital Markets experts on the economy, markets, and deal activity.