Foreclosures are Leading to a Hike in Demand for Food Stamps

April 27th, 2009 | Tags: Foreclosures

Foreclosures are leading to a hike in the demand for food stamps. The poverty of America is being symbolized by these. A record breaking number of 28 million Americans are now totally dependent on food stamps. This is a sure sign that mighty America is facing a grave economic catastrophe.

The gloomy predictions by the budget office at Washington hints that the government purchase of groceries will be the highest since food stamps came into use in the 60’s. The sharp increase is due to lately taken measures to make the public aware and also because of the shift over from paper coupons to electronic debit cards. The main reason of course is the pressure created by the economy on the ordinary American – foreclosure of homes, increasing unemployment and fast rise in prices of essentials.

The crisis initially came to be symbolized by the rows of foreclosed houses that led to families losing their homes. But now the problem is reaching out to the very core of existence – the stomach. To many Americans placing food on the table has become a challenge. The use of food stamps may not be the exact thermometer to measure the temperature of the economy but it is surely a pointer and indicator.

Michigan has been suffering its own recession since the break down of its industrial base – especially the automobile industry that has thrown out the maximum number of workers and employees. Today one out of eight persons in Michigan is dependent on food stamps – the numbers being double that of 2000. Maureen Sorbet representing programmes being launched in Michigan said, “It\’s been increasing steadily. Without the programme, some families and kids would be going without.”

The food stamp syndrome is no longer confined to the rust belt but is spreading like a virus. Forty states have reported increase in applications for food stamps. The six states worst affected by foreclosures – including Arizona, Florida, California, Maryland and others have reported a 10% increase in the last one year. In Rhode Island the demand has gone up by 18% in the last two years.

The demand has been hiking since 2006. The electronic cards that are swiped by the purchaser at the till are reimbursed every month by the government. The food stamp programme made its debut four decades ago when hunger was still haunting the daily lives of Americans. The change over to plastic card has somewhat removed the social stigma.