As the economy worsens, people who are heavily in debt often become more reliant on the government for social assistance. The Great Recession of 2008 serves as a prime example of how economic hardship can drive people to seek government-funded assistance. During the recession, many people lost their jobs, leading to a surge in the number of people relying on government assistance.
For those who are deeply in debt, social assistance programs such as Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), and Medicaid can offer some reprieve, allowing them to stay afloat while they look for employment or other sources of income.
In fact, during the Great Recession, the number of people relying on these programs skyrocketed, with the number of people receiving SNAP benefits increasing by an estimated 17.2 million between 2007 and 2011. Overall, as the economy worsens, those who are heavily in debt become more reliant on the government for social assistance. This was especially true during the Great Recession, when millions of people turned to government-funded programs to help them get by.
In the end, a Central Bank Digital Currency (CBDC) will likely be introduced enabling vast government oversight into every financial aspect of people’s lives. A crisis is needed for there to be justification for the introduction but also for mass acceptance.
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What’s Happening? 0:00
Economic Trouble 10:52