Wednesday, November 02, 2011

Despite Record Level Poverty, Soaring Food Prices, Food Stamps on the Chopping Block.

Despite soaring food prices (double the core inflation rate), due mostly to excessive speculation because of a deregulated agricultural commodity derivatives markets; rapidly rising poverty rates, and steady unemployment numbers, Congress is calling for dramatic cuts to Supplemental Nutrition Assistance Program (SNAP), the food stamp program, regardless of the fact that for every $1 spent on food stamps, $1.79 is made.

According to US Department of Agriculture, since December 2008, the Supplemental Nutrition Assistance Program (SNAP) has set records, every month, except one. August, 2011, the last month reported, was no exception, as it has set another record for the number of Americans - 45.8 million - receiving food stamps, a figure  1.1% higher than the previous month and 8.1% more than a year earlier, with Texas and California leading the pack.

Household participation in SNAP is climbing so steadily that it has far surpassed, even the peak reached after the fallout of hurricane Katrina.
"The slow economic strangulation of millions of middle-class Americans started long before the Great Recession, which merely exacerbated the “personal recession” that ordinary Americans had been suffering for years." -- Edward Luce in a Financial Times article.
Meanwhile, the incomes of the top 1 per cent have more than tripled.

Stop Gambling on Hunger

Better Markets today released a new research report showing speculative commodity trading pushed by Wall Street is causing market disruptions that have increased prices for American families and farmers.
Excessive Speculation and Oil Price Shock Recessions: A Case of Wall Street Deja vu All Over Again
[estimates that] “speculation will add $600 to the average household expenditures on gasoline in 2011.”


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