Last Friday marked a significant and surprising event: Congress allowed a temporary $5 billion food stamp stimulus from the 2009 Recovery Act to lapse. It’s rare to witness a federal program shrink rather than expand—has anyone ever seen this happen before?
This decision means that nearly 47 million Americans, or roughly one in seven, who rely on the Supplemental Nutrition Assistance Program (SNAP) will experience a reduction in their benefits. For a family of four, this translates to an approximate $36 monthly decrease in food assistance. How will these families manage?
“Families will either purchase less food, or they will opt for lower-quality options,” says food expert Marion Nestle. “Food stamps often run out before the month ends. Individuals will need to make more calculated choices to stretch their budgets.”
Data from the Census Bureau indicates that nearly half of Americans are now living at or near the poverty line. This reality could explain why SNAP expenditures have surged, doubling in just four years to nearly $80 billion annually. Unfortunately, rapid growth often brings along waste and fraud. Continue reading
Ralph Waldo Emerson noted in the mid-19th century that “Society is always taken by surprise at any new example of common sense.” Perhaps he was suggesting that common sense has become increasingly rare. If that was true in his time, it seems even more applicable today.
Over the years, common sense has gradually faded from public consciousness. Many have come to believe that if the right programs are implemented, it’s possible to live in a consequence-free world. Similarly, they have come to think that voting for the right politicians will yield outcomes without effort.
These beliefs are evidently misguided. It doesn’t take a great deal of insight to recognize that Social Security is on a path toward insolvency. The system was destined for trouble from the outset.
As early as 1939, John T. Flynn predicted that Social Security would face financial difficulties by 1970 and collapse altogether by 1980. Continue reading
At Economic Prism, we vehemently oppose outright property confiscation by governments. We find it unjustifiable to endorse state-sanctioned theft, which includes imposing a disproportionate burden on the young and healthy through mandatory health insurance programs.
Similarly, we hold no resentment towards those who have worked hard to accumulate their wealth. As Margaret Thatcher famously stated, we believe that success is rarely attained without dedication. Therefore, those who have succeeded should rightfully enjoy the rewards of their labor.
Nonetheless, there remains a significant faction eager to tax the affluent. They view the confiscation of their property as a solution to the government’s financial issues. Reducing government commitments appears politically untenable, despite being the very action that is required.
Today, it’s not only the rich whose assets are under scrutiny; governments burdened with debt are increasingly eyeing the property of anyone who possesses any tangible wealth, regardless of its size. Continue reading
According to the Department of Labor, there were 148,000 jobs created in September. Experts had anticipated closer to 180,000 new jobs. Interestingly, the unemployment rate did decrease by a tenth of a percent, now at 7.2 percent.
However, this somewhat lackluster job report provides the Federal Reserve with an opportunity to continue its practice of creating $85 billion monthly, supposedly to support mortgage and treasury markets. The Fed operates under the belief that this influx of currency will miraculously lead to job creation. Does that seem logical to you?
As expected, the jobs promised by the Fed are still elusive. Nonetheless, the detrimental effects of their aggressive monetary policies are becoming increasingly apparent. The stock market, for example, is soaring to unprecedented heights, a stark indicator of monetary distortion.
At Economic Prism, we disagree with this heavy-handed interference in financial markets, but we cannot overlook or impede its ongoing course. Continue reading
