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"Expenditure cuts and tax increases are problematic policies during an economic downturn because they reduce overall demand and can make the downturn deeper. When states cut spending, they lay off employees, cancel contracts with vendors, eliminate or lower payments to businesses and nonprofit organizations that provide direct services, and cut benefit payments to individuals."
Demand is then reduced because households have less to spend. As a result, the economic crisis deepens. CBPP said federal assistance is crucial, yet the Obama administration declined while providing trillions to Wall Street and other corporate favorites. That's the state of governance in America today under Republican and Democrat administrations, each no different from the other.
Hunger in America
On its web site, Feeding America (formerly America's Second Harvest) said in "the land of plenty," one in eight Americans (meaning millions) face growing hunger problems, and not just the poor and unemployed. They're "often hard-working adults, children and seniors who simply cannot make ends meet" and have to forego meals at times, even for days.
Hunger and Poverty Facts
-- in (pre-crisis) 2007, 37.5 million people were impoverished; they comprised:
-- 12.5% of the population and 9.8% of families;
-- 20.3 million or 10.9% of people aged 18 - 64;
-- 13.3 million or 18% of children under age 18; and
-- 3.7 million or 9.7% of seniors aged 65 or older who benefit from Social Security and Medicare.
In addition:
-- 36.2 million Americans are food insecure, including 12.4 million children;
-- they comprise 13 million or 11.1% of households;
-- 4.7 million households experience "very low food security" meaning hunger is a persistent problem;
-- households with children have double the food insecurity as ones with none;
-- single women-headed households are worst off with 30.2% of them insecure; and
