The Poorest of People Spend more on Cell Phones and Least on Food!

United States
March 20, 2007 6:30am CST
This article addresses one point that I have noticed and one which I am surprised at: I have noticed at how many of the poorer looking individuals are walking around the streets with a cell phone glued to there ears. It is not only once but often I think how can they afford a cell phone? The other that come to mind is having to pay for medication but go without food to be able to do that. Don't you think that something is wrong here. World's poor represent $5 trillion market: report Mon Mar 19, 5:41 PM ET WASHINGTON (Reuters) - The world's estimated four billion people who live under the poverty line represent an untapped global market worth $5 trillion in local purchasing power, according to a new report. In surveys that look at sector markets for the 4 billion consumers, the report said range from $20 billion for water, $51 billion for technology, $158 billion for health, $433 billion for energy and the largest is $2.89 trillion for food. According to surveys more than half of these poor households' health care spending is for pharmaceuticals. As incomes rise, the share of household spending for food declines, while the share of spending for transportation and for phone and Internet access rises sharply. http://news.yahoo.com/s/nm/20070319/ts_nm/worldbank_poverty_report_dc;_ylt=Ag3AQ6la9uyZRz0HR6rcVAIDW7oF
4 people like this
18 responses
• United States
21 Mar 07
I wonder about stuff like that, too, but try not to judge. I know when we were at our poorest--cell phones were the last thing on our minds. We only got our first set in 2003, I think. And that was after a lot of consideration and me looking over our bills to make sure we could afford the $65 monthly payment on service for 2 phones. It just barely fit into our budget. I just wonder about the people I get behind in the grocery store that are wearing designer clothes (stuff that costs more then my husband's weekly salary) and are paying with food stamps or something. Now, I know we qualify for food stamps and if there wasn't so much red tape involved we would use it to help loosen up money in our budget for other stuff but we would only get like $120 a month for a family of 6. These people buy like $300 worth of stuff with food stamps. The clothes me and my kids wear all come from Wal-mart and Target.
1 person likes this
@valmiki9 (1171)
• India
21 Mar 07
pretence has become the order of the age.Every one wants to pose a a well to do person.So people go for all luxury items like cellphone, Television, airconditioner,weekly movies etc draing their income.So they are forced to cut on food items.People also like to have a car. They forget that a minimum of 10 litres of petrol has to be there in the tank and it has to be run every day to keep the battery running.So they take their car for places where they can easiliy commute on atwo wheeler at a cheaper rate. Thus I see that it is pretence which makes people to spend on unnecessary items and cut the essentials.
1 person likes this
@anya11111 (169)
• India
21 Mar 07
they have to prove that they are not poor and so have to show off!
1 person likes this
• Bangladesh
21 Mar 07
Actually necessity knows no law.Although one may be poor but to earn his own bread , he may need to spend on mobile phone.But again, cut your cloth according to your cloth.Definitely expenditure that exceeds once income never gonna be appreciated.spend within the limit-that's the best policy.
1 person likes this
• Bangladesh
21 Mar 07
Actually necessity knows no law.Although one may be poor but to earn his own bread , he need to spend on mobile phone.But again, cut your cloth according to your cloth.Definitely expenditure that exceeds once income never gonna be appreciated.spend within the limit-that's the best policy.
1 person likes this
• United States
21 Mar 07
I agree with you, I see people who are broke talking on their cell phones all the time because their work is slow and they have nothing else to do. In fact, I have a friend that calls me from his cell phone all the time and complains that his work is slow and he has bills to pay! And when we have extra money, don't we all stock up on food and canned goods and such? And when we have money, we aren't wasting time on a cell phone! Their "reports" never make such sense. That makes about as much sense as their 0% inflation.
1 person likes this
@sherinek (3320)
• United States
21 Mar 07
This is a very alarming situation even in my country. Almost everybody have handphones these days. Some people who has no fixed income and has to do labour jobs day to day, even carry a mobile. I cant understand what this world is coming to. There are a lot of things to be attended to in life better than having a phone. This is what i personally think.
1 person likes this
@jennybianca (12912)
• Australia
21 Mar 07
I have also noticed here, that some individuals can't afford to pay for their electricity bill, but still have mobile phones and DVD players. It seems families have different values. With Pensioners in Australia, that is often the case that to pay for their medication, they cut down on their food supplies.
1 person likes this
@rsa101 (37968)
• Philippines
21 Mar 07
Oh I thought that phenomenon is only happening in my country. In my country that is the trend nowadays. We even had a study that shows that students would tend to skip snacks/meals to save and buy prepaid credits for cellphone loads. I do have my cellphone but I rarely used it except when there are personal texts or calls made in it. But most of us in here loves to use cellphone texting. We are even called the texting capital of the world. i do find texting rather convenient to use than calling.
1 person likes this
• United States
21 Mar 07
As someone already mentioned, I don't think people just spend a lot of money on cell phones, they spend money on technology period. They want it, they need it so they and buy it completely ignoring everything else, food, clothing, shelter, that sort of thing, just so they can have the newest cell phone. The rising costs of technology certainly don't help either. If everything wasn't so expensive, people could actually afford to live.
1 person likes this
• Philippines
21 Mar 07
I definitely agree on this issue. We are in a third world country but people here would rather spend money for their cellphones and their loads than buy food for lunch or any meal. Cellphones used to be a luxury but now it has become a necessity for Filipinos and for other nationalities as well. I really feel bad about this because people would continue complaining about their economic status in life when in reality they are putting or spending their money in wrong things. Aren't we have only necessities in life, food, clothing and shelter? If we could only concentrate on those things maybe we'll be at least satisfied of what we have right now.
• India
21 Mar 07
ya i agree with u the poor people have thier own interests on any thing that is clothes,cell phones and others.only they compare with the middle class people or rich people thats all they doesn't think it is use full or not they want to do what ever the trend is going for that only they are spending not on thier food and hospitality
@myklaire (437)
• Philippines
20 Mar 07
This is the sad fact that we are facing now in our country. No wonder they are not able to improve their status in life since they are spending their money unwisely. Mobile phones or cellphones were never considered an asset since its value depreciates and regularly, one will spend money for its services.
1 person likes this
@selvi4184 (101)
• India
21 Mar 07
Ya, its really sad to hear. But it is the true fact all over the world. People dont think that thier health is wealth yo them. Until they realize they keep on doing the same. All the people looking only for thier external status, but this situation has to be changed...
1 person likes this
20 Mar 07
I have noticed that if you go into council estates they all have satellite tv's and they all have mobiles and big TV's and things like that but they eat chicken nuggets and chips every day. Ok I know that is unfair and eveyrone isn't like that but it does make you wonder. I consider myself to be on a low income as I get some benefits. I do have a mobile phone and spend about £5 a month on it. I spend about £120 a month on food. I don't spend much on health as we dont' need anything fo that as we are all healthy.
1 person likes this
• Singapore
20 Mar 07
I think they are not really that poor. :P If not, they simply feel that "face" is more important than anything else. I cannot imagine people splurging like this... yet I do see such examples. In Singapore, it is quite popular for ladies over in Philippines to work as "maids" here. They don't earn much - just a few hundred bucks. Yet, they can spend a few hundred bucks which is easily 1-2 months salary on mobile phones. They also spend a lot of money on prepaid phone cards - not only to call back home but to chitchat with fellow countrymates here. I really cannot understand why they would want to waste such hard earned money.
1 person likes this
• United States
20 Mar 07
While this article is true, it is however NOT true for ALL low income people. We each have a cell phone--meaning myself, my hubby and my teenage son. I purchased mine and my hubbys for less than $20 apiece. My teenage son purchased his from his birthday money last September for about the same price. They are all prepaid phones--the TracFones. We buy a card less than once a month because those phones are only used in situations where we have no other choice. My teenager cannot use the school phone to call home if persay he misses the bus. We do NOT buy that card for one of the phones over grocreies, medical needs, or utilities EVER. It is SAD however that the numbers and percentage of people putting that cell phone want first and foremost above other NEEDS. Thank you for the interesting topic--I gave you a +
1 person likes this
@McSNIPER (16)
• Philippines
20 Mar 07
yup! thats true!... it happens here in the philippines. It might be 85% of the population (I guess?!) has a cellphone. even senior citizen and students in elementary have it!. based on what i saw here I could say some people here are text addict, some people here saving thier money so that they can buy a prepaid card so they can call and text and some people here specially the student in high school and colleges they've save thier allowances and even they borrow money from their friends just to buy the latest phone in the market and and the darkside of that saving money thing.. they just skip their meals everyday. others here below middle class of the society, cellphones and prepaid card are part of thier everyday needs
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