Food stamp goods
The Associated Press

Government food programs are getting more business lately.

Featured Topic | Posted 15 weeks 4 days ago

Is the United States entering a new Great Depression?

U.S. government statistics show that as a new economic recession stalks the United States, a record number of Americans will shortly be depending on food stamps just to feed themselves and their families.

The increase -- from 26.5 million in 2007 -- is due partly to recent efforts to increase public awareness of the program and also a switch from paper coupons to electronic debit cards. But above all, the London Independent reports, it is the pressures being exerted on ordinary Americans by an economy that is suddenly beset by troubles. Housing foreclosures, accelerating jobs losses and fast-rising prices all add to the squeeze.

But it's worth noting, as James Taranto of the Wall Street Journal did today, that the Farm Bill of 2002 expanded the food-stamp program. As the U.S. Department of Agriculture Web site notes, that the law made legal immigrants eligible for food stamps, increased benefits for larger households and expanded food-stamp eligibility for people leaving the welfare rolls.

Is the rise in food stamps usage really a sign of impending economic doom? Have the Bush administration's efforts to spur an economic stimulus come too late? Is a recession or a depression in America's future? Or is it all hype and panic?

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Ben likes: Media depression

Investor's Business Daily

It's been said the press notice the homeless problem only when a Republican's in office. The same could be said for food stamps, which the media now are using as an economic indicator.

Scary headline in Monday's Times: "As Jobs Vanish And Prices Rise, Food Stamp Use Nears Record." Scarier headline in Britain's Independent: "USA 2008: The Great Depression."Why didn't the Times editors just say: "Economy In Shambles — It's All Bush's Fault"? Or the Independent condemn the president for his war on the poor?

Despite the many reasons not to use food stamps to gauge economic health, the media still do it. They're sure that many voters will make their choices this fall based on what the press tells them. Things will change, though, if a Democrat is elected president. Expect to start seeing glowing reports on the economy about a year from now — no matter what shape it's in.

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Joel likes: Is this the Big One?

Jeff Faux/The Nation

For more than a decade, we Americans have been living on an economic San Andreas fault--a foundation of fracturing competitiveness covered by unsustainable consumer spending with money borrowed from foreigners. A financial earthquake was inevitable. We don't know how high on the recession Richter scale the current crisis will take us, but it increasingly looks like, as they say in San Francisco, "The Big One."

But well short of such a worst-case scenario, the country seems headed for major economic damage that will severely test whatever we have left of safety nets. It took five years from the time the recovery began in 1983 for the unemployment rate to return to pre-recession levels. Once we reach the bottom of this trough, it could be a very long time before American consumers, whose spending accounts for some 70 percent of our economy, crawl out of the debt hole and back into the shopping mall. The Japanese have still not recovered from their similar housing/debt crash in the early 1990s.

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