Safety Net Demands Rise, Poverty Rise

During a recessionary period, safety net programs become more necessary, and increases in demand for these services are an early indicator of rising poverty. Public and private assistance agencies have seen significant recession-induced increases in demand.

The magnitude of these increases is a sign of worsening poverty and a warning to policymakers of the potential long-range damage to families, children and economy. If policymakers choose to cut safety net services in efforts to balance the state budget, many more people, and especially children, will be exposed to the effects of prolonged poverty. family

Food stamp caseloads increased sharply in 2008. This is important to note because food stamps are a reliable early indicator of increasing economic distress and poverty. The impact on children is substantial, as 57 percent of households receiving food stamps include children.

Another early indicator of family economic vulnerability is food bank demand. This demand increases of 20 to 30 percent during 2008. These increases have occurred at the same time that donations of surplus food have decreased. Food banks, therefore, have initiated requests for emergency funding to meet rising demands.


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