It is not new information that millions of Americans still struggle two years after the recession took hold. Many live pay check to pay check, but Wal-Mart Stores Inc. have noticed this phenomenon in its most literal sense as those with financial strains show up in Wal-Mart parking lots across the U.S. at midnight on the first of every month to load up on necessities like groceries and diapers. As of June 2010, just over 41 million people participate in the federal food-stamp program, which is over 1.5 times the amount of people who were in the program in 2007, just three short years ago. The average amount of monthly assistance is $133.36 and when the government replenishes the electronic benefit accounts at midnight on the first of the month, families shop as soon as that money is available. The surge of shoppers between 11 p.m. and 2 a.m. can be explained by the sole fact that these families are in dire need. “Low-income families are stretching the limits of the “pay-check” cycle.” Money is not lasting the entire month, so as soon as it is available, people take advantage of it and refill their pantries with the necessities to live, even if it means shopping in the early hours of the morning. This surge in midnight shopping helps bring to light just how needy Americans are in these troubled times and how important economic recovery is to the United States.
I thought this article and your interpretation were really interesting. I think it was quite clever on the authors part to connect the increase in walmart sales with that of the struggling economy. I think I'll look into this a bit further to see whether walmart additionally takes food stamps as a form of currency. I think if not, this could be a great opportunity for walmart to help in the ailing economy, those who have been hit the hardest.
ReplyDeleteThis article brings a couple things to mind... First, this article indicates to me that there's a disconnect between those most in need and those who are absorbing the recession with more ease. I say this because the recession has motivated people to save at much higher rates than before the recession, nearly as much as 3 percent more. But, obviously these people, those receiving aid, are not among those. Secondly, and also related to my first point, is that the lowest earners in our economy, or in any economy, are arguably the ones who should be saving most, but instead they are forced to spend when their incomes arrive. It contributes to a cycle of poverty that makes it difficult for those in need to move 'up' economically.
ReplyDeleteThis pattern shouldn't be surprising if you think about the fact that the poorest people save the least. However, the thought of midnight shopping is pretty shocking. Do you think the government should step in and help these people more, or does that go against capitalistic values?
ReplyDeleteThe lack of saving among those with lower incomes illustrates the need for tax breaks for low and middle class workers rather than high income earners and companies because while those with a lot of money already continue to save it rather than invest it, we need more money in the hands of people who will spend it quickly in order to stimulate the economy.
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