40% of Michiganders can't afford basics, researchers say

We’ve all felt it at the grocery store, the gas pump, and when the rent or mortgage comes due. Things cost more, and for Michigan families, the math simply isn’t adding up. Starting at the gas pump, prices here in Michigan are back on the rise. The average cost of a gallon of regular gas in Metro Detroit is $4.25. At the grocery store, a pound of ground beef will run you $6.89 a pound; chicken is a little cheaper at $4.15. Maybe skip the bacon that costs $6.58 a pound. Milk is about $4.31 a gallon. On the bright side, the price of eggs has dropped to about $2.19 per dozen, but it still adds up. Overall, prices for everything are about 3.5% higher than last year, but wages are growing at a slower rate. That gap means your paycheck isn’t keeping up with the cost of living. In fact, half of people in America can’t afford the true cost of living. New research from the University of Michigan Poverty Solutions Program puts numbers in perspective: nearly 40% of Michiganders are struggling to afford basic needs, and about 13% of Michiganders live below the federal poverty line. For a family of three, that means earning less than $27,320 a year. But more than 26% of working Michiganders earn above the poverty line and are still struggling to make ends meet. Researchers say more than a million Michigan households do not have enough in savings to handle an unexpected car repair, medical bill, or emergency at home. Amanda Nothaft, the director of data and analysis for the Poverty Solutions Initiative at the University of Michigan, joined Local 4 Live to help us understand all of this.