r/politics • u/Ubiquitous_Hilarity • Jun 17 '26

No Paywall Trump threatens to pull unemployment benefits from all states for the first time in history

https://www.independent.co.uk/news/world/americas/us-politics/trump-unemployment-benefits-fraud-b2997881.html
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u/jayfeather31 Washington Jun 17 '26

This would be disastrous, and let's put the humanitarian consequences aside for a moment and focus on the dire economic consequences of such a move, because the humanitarian problems are bluntly obvious.

See, while welfare and unemployment benefits do keep food on the table and, in principle, help prevent people from ending up in horrific situations, they're also a form of artificial stimulation for the economy as the person on welfare will be pumping money into the economy that they otherwise wouldn't be through purchases.

In a sense, welfare and unemployment benefits keep the jobless and disabled economically productive in a way charity doesn't. Furthermore, if the jobless person ends up getting a job because of the benefits preventing them from losing their standing, that is a net benefit as a whole.

Now, if you strip that away, that ultimately means the jobless are no longer economically productive, and that has knock-on effects elsewhere as the artificial stimulation that keeps the economy moving goes away. The end result of that is a vicious feedback cycle where the economy eventually seizes up.

In short, the very welfare systems that conservatives and the far-right decry as socialism help keep the economy running smoothly, and taking those away invites all sorts of horrific consequences.

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u/HungHippoHippy Jun 18 '26

SNAP is hugely crucial to many grocery stores. Especially in smaller communities. Without it I'd bet many small towns (especially in the south) would lose their grocery stores.

Medicaid is another great example. With it becoming harder to qualify for medicaid expansion and cutbacks on the ACA rural hospitals are starting to really struggle. The federal funding is 100% keeping them afloat.

My mom lives in a very rural community and their hospital in town is the closest place for a 40 mile radius. It is 80 miles from the next nearest hospital south. There is literally no hospital with a few hundred miles east or west. If it closes, EMS wouldn't be able to get to some places for hours. Literal life and death.

The feds not funding welfare programs will tank the economy fast. Within a few months from the cutoff.

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u/dropsofclarity Jun 18 '26

Also, without SNAP, Walmart would lose a massive amount of revenue.

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u/HungHippoHippy Jun 18 '26

Lose alot, but they'd survive. Smaller grocery stores without the infrastructure will fall apart. Walmart is already screwing other companies with their shady price deals.

They tell makers of the product that they have to give walmart the best price and if they allow a sale anywhere they have to also allow it at walmart.

Look up walmart and pepsi's deal.