Capitol Hill Blue Forums Political Issues Finance, the economy & Economics USA 2008: The Great Depression

We knew things were bad on Wall Street, but on Main Street it may be worse. Startling official 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.


Dismal projections by the Congressional Budget Office in Washington suggest that in the fiscal year starting in October, 28 million people in the US will be using government food stamps to buy essential groceries, the highest level since the food assistance programme was introduced in the 1960s.

The increase – from 26.5 million in 2007 – is due partly to recent efforts to increase public awareness of the programme and also a switch from paper coupons to electronic debit cards. But above all 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.

Emblematic of the downturn until now has been the parades of houses seized in foreclosure all across the country, and myriad families separated from their homes. But now the crisis is starting to hit the country in its gut. Getting food on the table is a challenge many Americans are finding harder to meet. As a barometer of the country's economic health, food stamp usage may not be perfect, but can certainly tell a story.

Michigan has been in its own mini-recession for years as its collapsing industrial base, particularly in the car industry, has cast more and more out of work. Now, one in eight residents of the state is on food stamps, double the level in 2000. "We have seen a dramatic increase in recent years, but we have also seen it climbing more in recent months," Maureen Sorbet, a spokeswoman for Michigan's programme, said. "It's been increasing steadily. Without the programme, some families and kids would be going without."

Independent.co.uk

im always fascinated by the foreign press and its take on our situation. i am one that believes they usually get it right before we do. frankly, i see this economic crash as a serious threat. however, i am prepared. how about you?

no

and it wont just affect the US, if you take a look at the last great depression, when the credit was called in, other economies collapsed.

Wiemar Germany anyone? Such collapses create the conditions in which Fuhrers thrive!

indeed. well, misery loves company. economic fears spur so much. the 30s and early 40s in this country was populated by kooks of all varieties, not that we need any help now. but let me clear here, being prepared will make a difference. credit, save for a mortgage, is paid off. job appears to be intact. wage isn't great but it seems to suffice, at least for now. gardens are being planted, hens are laying eggs. there are some things, i suppose, that need tending, and while i am not afraid, i am ready.

could you elaborate?

i have, in my above post. paid down credit, leave simply, low mortgage - my only debt - use strategic buying at the market to keep costs down, grow our own food, hens for eggs. a stable job as much as any job could be stable i suppose, a wage that is sufficient, at least for now. an understanding of conservation versus waste that informs our habits at home and allows us to be comfortable in uncomfortable situations. that's about the best a person can do, really, imo.

thanks.
Well it will be interesting.
History never completely repeats itself, so this time will also be filled with it's own surprises. In general, people today seem more pampered and less able to improvise, which may cause some real unrest and misery.

For myself, I also feel about as well prepared as possible. Similar to 2wins, but without the garden and chickens.

I have just recently had a few "canary in the mine" moments

One customer who works in a cafe says lunch buisiness has fallen way off.

Another customer who manages an intermediate sized mall says foot traffic is way down.

Our vendors who provide chinese made product are now giving us frequent and large price increases.

ardy - the chinese imports are increasing their price points. the days of cheap stuff is coming to an end as china turns the tables. we are having a canary moment here, of sorts. one that will have far reaching consequences on the local economy, i fear. the city utility is no longer allowing businesses to pay their monthly bills with credit cards. as a former business owner i see the problem here, especially in our debt-based economy. retail spending is down and businesses that need to float cash flow by using credit will find themselves in a pinch. on the face of it this would seem to be a small matter yet i believe it will have a devastating ripple effect here.

btw, if your zoning allows for a few chickens the eggs are much better, more firm and the chickens actually do make good pets, oddly enough. they follow me like little children. messy and stinky at times, but to my chagrine they're great fun.