Economic Distress Continues To Spread

April 22, 2010

by Al Doyle

Using statistics alone to describe the breadth and depth of the current economic crunch is an inadequate method of showing how dire the situation is becoming. That's because government numbers deliberately understate (sometimes by a large margin) the seriousness of the problem, and first person accounts and true stories drive the point home in a way that percentages and charts can't do.

Here are some of the many examples of the current state of the real world U.S. economy.

Once a small portion of the product mix, over the counter medications and painkillers have become big sellers at America's $1 stores. In more than a few cases, a $1 bill is all that customers can spare. This section now occupies much more space and generates more business than it did a year or two ago.

Publishers Clearinghouse once offered a $1 million after taxes grand prize. PCH customers can still win a cash bonanza, but the after-tax payout has been slashed 90 percent to $100,000.

Sowers of Seed is a Fort Worth, Texas-based tract printer and publisher that has been around since 1963. A recent letter from SOS to customers and supporters could have been sent by thousands of other churches and ministries that are currently in the same boat.

"The slowdown in the economy has hit ministries like our especially hard. Orders and giving are down to levels not seen before. . .Please continue to pray for the Lord's leading with some hard decisions we have to make to keep this ministry going."

Non-profit groups that help the poor and needy are in an especially precarious position, as former donors have often become clients.

"Demand is up, but donations are down," reports Salvation Army Major Man-Hee Chang, who is in charge of thrift stores and drug and alcohol rehabilitation programs in 13 western states. Chang says donations are down by 20 percent in his district, which includes California. The decline in cash donations and used goods has led to the closure of several Salvation Army stores just when demand for inexpensive items is soaring.

Colonel Larry White is going through similar problems with the Salvation Army thrift stores he oversees in 15eastern and southern states. White says donations are down 15 percent overall and 25 percent in central Florida.

Goodwill Industries CEO Jim Gibbons didn't sugarcoat the situation.

"The demand and need is 10 times bigger than our ability to keep up with it," he admits.