I Love Idiotic Stories Like This

The Independent "reports":

Food stamps are the symbol of poverty in the US. In the era of the credit crunch, a record 28 million Americans are now relying on them to survive – a sure sign the world's richest country faces economic crisis.

I view this as the growth of the welfare state rather than signs of another Great Depression. I also wonder if the reporter read his own story which contains the following information regarding food stamps:

• Recent efforts have sought to increase awareness with respect to the program.


• The switch to plastic cards rather than coupons has removed some of the stigma of using food stamps.


• The stamps are available even to some individuals with incomes above the poverty line.

What do these three things all have in common? They increase demand!

Here is the kicker:

And the next monthly job numbers, to be released this Friday, are likely to show 50,000 more jobs were lost nationwide in March, and the unemployment rate is up to perhaps 5 per cent.

5 per cent?! A depression indeed.

Economics and Markets Posted by Harrison Bergeron at March 31, 2008 11:48 PM