EDGING TOWARD A DEPRESSION: A LETTER TO THE ECONOMIST (January 31, 2011)
Your article on the recession and homelessness in America is heartbreaking (“Et in Arcadia ego,” January 29, 2011). Food stamps, soup kitchens, food banks, and tent cities all around. And all this in the suburban sunbelt rather than in Detroit or Newark. Much of the money for such schemes comes from the government, from local to federal, which is tightening its purse strings. Some of it comes from charities, which are getting stretched thin. But your article shows clearly enough that the recession needs careful rethinking by the government. For instance, those who are out of work for more than two years are not eligible for unemployment payments. The legislation concerning unemployment is clearly meant for “normal” recessions. But this recession, already dubbed the Great Recession, is slowly but surely edging toward a depression. The legislation needs to adjust to the situation on the ground. At a minimum, it must ensure smooth workings of essential programs such as food stamps, soup kitchens, food banks, and tent cities.