At an average monthly cost of $134 per recipient, that’s $6.26 BILLION injected into retail food stores every month. Or roughly $75 billion per year.
Total supermarket sales in 2011 was $584.369 billion. Using this number as a gauge, current food stamp use represents nearly 13% of all retail food sales.
That’s not exactly a government monopoly like they have on student loans or mortgage guarantees, but it’s certainly enough to contribute to price increases. And if we were to add in other welfare programs and farm subsidies, the percentage of food sales with government handouts is likely much higher.
Additionally, since the U.S. government borrows 54 cents of every dollar it spends, every expense adds to the weakening purchasing power of the U.S. Dollar, putting further pressure on the cost of essentials like food and energy.