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US food stamp use projected to swell to record levels

by wsws (reposted)
Wednesday, April 2, 2008 :In yet another indication of worsening social conditions in the United States, a new government report anticipates one and a half million new applicants to the federal Food Stamp Program serving working class households over the coming year. The Congressional Budget Office (CBO) projects that by October, 28 million people will depend upon federal food assistance, up from 26.5 million in 2007.
This will be the largest number of people depending on food stamps since the program began in the 1960s.

Although officials have noted that there is greater public awareness of the program and reduced social stigma associated with food stamps, the CBO estimate is based on rising inflation and an expected acceleration of job losses as the US recession deepens.

The cost of basic foods has risen by 5.8 percent in the past year, according to the Bureau of Labor Statistics. Prices are projected to continue rising for the foreseeable future based on spikes in the grain markets and rising transportation and production costs. At the same time, prices for other essentials, such as gasoline and home energy costs, have also increased.

In addition, after years of leveraging living expenses through borrowing, home equity has collapsed and both the credit market and job prospects have constricted, leaving most families stretched thin and with few financial resources to cope with inflation.

Officials note that applications for food assistance have increased in 43 states. At least seven states—Florida, Maryland, Rhode Island, North Dakota, Arizona, Nevada, and Washington—saw increases of more than 10 percent in the number of recipients between December 2006 and the end of 2007. More than a dozen other states recorded increases of between 5 and 10 percent over the period.

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