You and I both understand that all Federal spending must originate with Congress, but theFederal Government has already been functioning on a “whatever” basis for decades.
Food prices have shot up nearly five percent between only April to May of this year, hurting everyone who doesn’t happen to be rich. Except for The people on welfare, of course.
In a move ABC News calls “the single, largest increase in the program’s history,” the average Food Stamp SNAP benefit will increase by 25% starting in October.
The massive, and permanent increase will then be available to all 42 million people who receive food stamps.
That’s one in every eight Americans who won’t have to worry about their budgets or rising food costs; thanks mostly to those who do have to worry.
However when you set aside the consideration of how unfair this all is to the Middle Class, the increase is likely to probably at best, be a wash.
Dumping even more billions of Dollars into the hands of consumers just as inflation is taking off before we have all of our COVID-related logistical snafus worked out will likely only pour gas on the inflation fire.
I’ll wager on the certainty of this: A 25% bump up in SNAP benefits is only the start. As inflation grows, so too will new demands for increasing payouts for disability, Social Security and every other government entitlement program under the Sun
Congress and/or (p)Resident Joe Biden will only be to happy to comply every time. A hundred billion here, a hundred billion there and pretty soon you’re talking more trillions; flying out of the Fed & landing on the economy like gas on a fire.
We now find ourselves at the start of an inflationary positive-feedback loop: where Democrat policies juice greater inflation to pay for more of the things Democrats demand which create even higher rate of inflation.
What’s needed instead to turn all of this around is massive deregulation to get the Government jackboot off the necks of food producers, transporters, distributors, processors & sellers during this time of crisis. What’s needed is an end to the careless irresponsibility which has already pumped trillions of make-believe dollars into an economy only now partly getting off of its knees. What’s also needed is a series of interest rate increases to absorb most of the excess capital Washington DC has been swimming in like a drunk sailor in a giant punchbowl.
However, what we’ll more than likely get instead is continued increasing regulation accompanied by even more taxes & unlimited Fed printing; zero interest rates for as far into the future as the eye can see which will only crush investment & growth.✪