Wednesday, November 20, 2013

Food Security and the produce business

People got no jobs, people got no money.  That is the quote Charley Pierce uses to describe the current economic situation.  Most economists call it a lack of demand and cluelessly wonder why, calling it is a lack of business confidence.  I guess that is technically correct, but it misses the point.  Without money to spend, the middle class and the working poor can't generate demand which might inspire business to expand and create more jobs.  It is a virtuous cycle, but the starting point is money in people's pockets.  That is the problem today.  Everyone in the produce business is lamenting the poor business conditions of the last few weeks.  They have run out of possible explanations as to why the slowdown is happening just before Thanksgiving.  The massive cuts to the food stamp program are probably the single most important reason for the slump.   With billions of dollars more being cut from the program later this year and unemployment benefits running out for millions of people, conditions will only get worse.  Cutting money from people who will spend it immediately for necessities like food and shelter is not only cruel, it is economic suicide.  The lemmings on the right in Congress are diving off the cliff and they are dragging many of us with them.

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