Secretary of Agriculture Tom Vilsack seems to have identified a most counterintuitive path to economic strength – high prices for food purchased with government food stamps.
In an appearance yesterday on Morning Joe, Vilsack explained how his home state of Iowa has done so well during the recession:
“We’re seeing probably the strongest agricultural economy we’ve seen perhaps in the history of the country. We’re looking at a record amount of ag exports which is going to bring jobs into the country and improve bottom lines for farmers and ranchers and we’re looking at pretty good, uh, strong commodity prices.”
“Strong commodity prices” means high prices, and food commodity prices have risen dramatically in the last year:
| Month | Price | Change |
|---|---|---|
| Jul 2010 | 143.88 | – |
| Aug 2010 | 151.36 | 5.20 % |
| Sep 2010 | 156.14 | 3.16 % |
| Oct 2010 | 163.18 | 4.51 % |
| Nov 2010 | 164.96 | 1.09 % |
| Dec 2010 | 176.43 | 6.95 % |
| Jan 2011 | 183.16 | 3.81 % |
| Feb 2011 | 189.34 | 3.37 % |
| Mar 2011 | 184.34 | -2.64 % |
| Apr 2011 | 190.88 | 3.55 % |
| May 2011 | 187.01 | -2.03 % |
| Jun 2011 | 181.62 | -2.88 % |
| Jul 2011 | 180.33 | -0.71 % |
Which leads to Vilsack’s next plank for economic strength, unemployment:
“When you talk about the SNAP program or the food stamp program, you have to recognize that its also an economic stimulus. Every dollar of SNAP benefits generates $1.84 in the economy in terms of economic activity . . . it’s the most direct stimulus you can get into the economy in tough times.”
Vilsack doesn’t seem concerned that $1.84 buys less food than it used to purchase.
