Hunger in America is a Tragic Offshoot of the Depression
Posted by Michael A. Kamperman on November 20, 2009
Yesterday I took some time off from my day job and attended the Texas at the Table Hunger Summit. The room was filled with good hearted people interested in helping their fellow citizens who are less fortunate than they are. Speakers included deputy commissioners of the USDA and the Texas Agricultural Commissioner. There lofty goal is to virtually end hunger in America by 2015. The latest update from the USDA is that 36 million people are participating in the Supplemental Nutrition Assistance Program, which we all know as food stamps. Up to 49 million people reported trouble buying food at some point in the last year. Shockingly, one in two infants born in Texas qualifies for the WIC program. Unfortunately, the debt-induced deflationary depression the country and the world have fallen into means there will probably be more hunger issues in the near term, not less. What’s worse is the resources to help the hungry are shrinking just when the needs are increasing.
The Texas Agricultural Commissioner said tax revenues keep falling and he anticipates state agencies will be asked to reduce spending below budgeted levels after the first of the year to compensate for an unanticipated multi-billion dollar gap. All of the other large states and most local governments are facing the same pressures. In Waco, our local food bank Caritas has 200 new families it has never seen before looking for assistance at a time when charitable donations are down. Since between now and January an additional one million people are expected to run out of all unemployment benefits it is a safe bet the number of Americans facing potential hunger is going to keep growing.
When President Obama talks about reducing the deficit he is talking about cutting funding for hunger programs at a time when all other funding sources are shrinking and the needs are growing. And, he is talking about cutting the number of people directly employed by the federal government at the same time the states and local governments are making job cuts. Effectively, when the President talks about deficit reduction in the middle of a deflationary depression he is talking about increasing the hunger pains of the American people. President Obama needs to reverse course and say deficit reduction will not be a priority of his administration unless and until the unemployment rate falls back below 7.6%, which is the rate he inherited. He should stake his Presidency on creating jobs and let the deficit be damned. The President should put forward a budget that not only meets the growing needs of the hungry and the unemployed, but also a budget that provides more aid to the states so they can close their funding gaps without further budget cuts. Most of the people concerned about the deficit are really concerned their taxes are about to go way up. The President can alleviate these fears by calling on the Fed to fulfill their mandate for full employment and to up their program of quantitative easing to a level that not only fully covers the budget deficit, but also actually reduces the national debt. He should demand they not end quantitative easing until the unemployment rate falls back below a rate of 7.6%. Mr. President, it is time for you to morph from Herbert Hoover to FDR.
Rayme said,
WOW, what a horrible article. Michael Kamperman is a Keynesian who has some really delusional ideas about how economics really works. I’m shocked at his ignorance. Obama should cut the deficit by ending the $1 Trillion a year war we got going in multiple poor countries. Maintain unemployment ins and food stamps. He needs to encourage everyone who is interested to begin gardening and raising a couple of livestock such as chickens or ducks and encourage towns and counties to change their laws regarding local farming. For example my town prohibits growing fruit trees or raising any livestock. If I was able to raise either 3 or 4 chickens or ducks, I could eliminate my need to go to the grocery store on my own as I would have a good source for fat.
Another problem that Obama fails to face is that we pay China $50 billion a month in interest on our current Debt. More deficits are only going to result in greater interest payments on our debt which will ultimately result in one day soon the US Federal Govt defaulting on it’s debt obligations. We should be doing this sooner rather than later. F**k china and all other countries who monetarily support such a bloated Fed Govt in the first place.
We also need to close the tax loopholes that give tax incentives to business that move their operations overseas.
Also what business right now would be interested in expanding it’s US operations to create jobs here in America while we have the threat of higher taxes, Cap and Trade, Health Care Reform, massive deficits, quantitative easing (which devalues the currency) and a hyper active Congress that is hell bent on introducing new regulations that will further raise the costs of doing business in the US. Most small US companies are hunkering down to ride out the Depression, they are not looking to expand and hire new people.
Personally, my opinion is that the problems we have with the US Fed Government and the Current Corporate structure is so great that nothing short of a complete collapse will begin the recovery we so need.
A freedom loving American doesn’t look to Big Govt or Big Business to solve his problems, he tells them to get the F**k out of the way so that he can take care of himself/herself. While the Federal Government steals 50 cents on the dollar from the tax payer, there will be no recovery.
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