Maybe you’ve heard, maybe you haven’t…  But Democrats have allowed a SNAP cutback agreed with the Republicans at some point in the past, to go into effect….

John Carney is in agreement.  Here is how that cutback will affect John Carney’s district, a district at large for the entire state of Delaware….

In Delaware there are 332,350 households.  Of those, 36,382 receive snap benefits.  Leaving 295,968 which do not.

Of those 36,382 households, 26,763 are families.  Of these families, 31% have two more more workers in the past 12 months.  50.1% of these families have one person working over the past 12 months.  Only 17.7% fall in the category commonly associated with food stamps.  people who are not working.

The benefits will be cut $11 dollars per month per single person, maxing out at $36 dollars per month for families four and over….  Using the figures above,  per month the 9619 individuals will cost Delaware $105,809 in less food purchased, and the 26,763 families will spend $963,468 less food dollars.  These are rough estimates using the averages provided here.

But these cuts mean that grocery stores across the state starting in November will receive $1 million less in sales for every month.  Of course a year means that 12 million will not be entering the Delawarean economy per year.

How does that affect the grocery business?

There are 326 Grocery stores listed in Delaware.   Although stores closer to areas that are less affluent will suffer worse, the average monthly loss to this slice of our economy per store is $3280 dollars.   Each store over the course of a month will lose $3280 dollars.  In a classic business structure, one expects to pay one third for product, one third for labor, and one third to everything else.  If one profits, it is because one has beaten the odds in any of those three categories…   Meaning that labor will be impacted by one third or $1100 each month….

Each of the grocery stores on average will need to cut $1100 each month…  because of John Carney’s support of this piece of legislation.

One can expect the entry positions to be cut first.  Entry levels are minimum wage, but just for our calculations, let us go with $10 per hour.   100 hours can be expected to be cut….  or if not spread across the staff, their loss will cost the removal of 2 and a half workers from each of the 326 grocery stores in Delaware…..

Across the state that carries to 815 jobs….

So the cutting of  SNAP benefits to appease Republicans appears to now cost Delaware an additional loss of 815 jobs….  According to August 2013’s  figures,  there are 51,200 Delawareans working in Delaware’s retail trade.  815 of those jobs disappearing is a 1.5% drop in that industry…. It is a small percentage of our total state workforce… 2 hundreths of one percent.

As of August 2013, there were 30,658 Delawareans out of work…  Add 815 and that new total, 31,473 jumps Delaware’s unemployment rate from its reported 6.9% up to our 7.1%…..

Now this does not account for 6 months later, when the impact of losing the cumulative of losing 1.1 million every month starts hitting farms.  Nationally the drop is $5 billion.  Simply put.  $5 billion less in food will be purchased over the course of a year….

Product will be scaled back, and most likely so will the payments to farm workers.  This too starts impacting the economy negatively…..

The giant agribusiness, will be most affected.  With fewer people buying their products, they must too cut back.

So, once again, we have cutting back on a Federal program that directly subsidized farm production, impacting the single common denominator of every single citizen… Food.

Like the floor of a skyscraper, once the first floor collapses onto the next, that one too gives out and drops downward as well, taking the next floor with it….

Most people don’t know how subsidies work; they never would complain about SNAP if they really knew.

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