Last week a friend of mine was describing what an uplifting experience he and his wife had distributing food to the needy. He pointed out that the recipients of these charitable food handouts were not what we typically would refer to as “the homeless.” Yes, a fair number of those in line for food were without a home, but they were not individuals who we might see living in squalor on the sidewalks of our downtown area. According to my friend, a lot of these were families who were just not able to make it on our present economy. Some living in their cars. Some living in apartments, but no longer able to afford enough food to feed themselves and/or their families. Indeed this is very understandable, as with inflation of 10-15+%, driving up the cost of everything including food, those living on the margin just cannot make it.
As we all realize, the inflation that appears to be the scourge of just about everyone is recent. It is a new phenomenon over the past two plus years. It wasn’t an issue back in 2020 … hmmm, what happened to change what wasn’t a problem in 2020 into a huge problem today?
Actually two main things have changed here in the U.S.:
First, increased government spending. Government spending has not just merely increased recently, but it has skyrocketed.
From I&I.
In its recent updated report the Congressional Budget Office
(CBO) finds that overall spending this year is running 10% higher than last year. In June alone, spending was up $97 billion compared with June 2022,
Looking a little deeper and the numbers are even more disturbing. The CBO notes that the huge increase in spending this year came despite the fact that COVID-related outlays – tax credits, grants to states, and public health spending – plunged $265 billion.
What’s more, the CBO shows that a huge portion of the spending increases are directly the fault of the Biden administration.
Second, the purposeful cutting back, limiting, and in some cases, prohibiting the production of energy.
Anyone with any common sense should realize that when the price of energy is purposefully increased, the price of just about everything will subsequently increase. Back in 2020, the U.S. was energy independent, but now the supply of gas/oil is significantly limited. In what is basic economics … when the supply of something is restricted, the price of that ing will inevitably go up. (A similar thing is happening in Europe where the Europeans basically put their energy supply inexplicably at the behest of the Russians. When a large portion of that Russian supply was cutoff, then the price went way up. Again basic economics.)
Ergo, because of the two above American issues, many individuals who were self-sustaining back in 2020 are now struggling, Consequently, we are now handing out food to individuals who are unable to cope. Because of Biden induced, out of control inflation, many just cannot make it now.
7/24/23
californiacontrarian