As debates over SNAP funding intensify, one uncomfortable truth stands out: Tens of millions of Americans now rely on “temporary” aid programs. Brandon Smith of alt-market.com explores the im-plications for the larger U.S. economy…

There’s a lot of black-pilling Republicans out there this week after a handful of elections in the northeastern U.S. led to “sweeping” Democrat victories in New York, New Jersey and Virginia. As is always the case whenever a politician loses a race, suddenly their party claims the sky is falling and doom is about to come crashing down on America for all eternity.

The panic has become quite tiresome.

Keep in mind, the gloom is limited mostly to social media and perhaps a few hundred conservative influencers. And, as usual, these people still don’t realize that the social media world is not the real world.

If you were shocked by the idea of someone like Zohran Mamdani winning the mayor’s race in New York for example, then you have not been paying any attention the past year. I predicted that liberals would turn out in droves to vote for the guy back in July. I predicted:

“Leftists in the US will rally around uncompromising socialists like Mamdani because they’re tired of pretending that they care about “democracy”, free markets, property rights, moral codes or freedom in general. They need an all encompassing vision, even if it’s a monstrous and dystopian one. And, they want leadership that is transparent and unapologetic in its psychopathic intent. They don’t want to play the role of humanitarians anymore – They want to take the mask off and taste the flavors of blood and power…”

It’s New York, folks. It’s one of the largest bastions of the left in the U.S. Conservatives only make up 26% of the city’s population. So of course Mamdani won! He represents everything the political left wants: A complete repudiation of western culture and free markets. Let’s not forget, these are the same people who celebrated the assassination of Charlie Kirk.

The same goes for New Jersey. In Virginia, the GOP decided to run a woman (Winsome Earle-Sears) who positioned herself as a “Never-Trumper” in 2022. She claimed that Trump was a liability for the Republican Party and that he should step aside. She then suddenly flipped in 2024 after Trump won again. Of course she lost the race in Virginia. Conservatives have scruples about their candidates.

They aren’t going to show up at the ballot box for someone who trashes their party leader and then jumps on the bandwagon at the last minute.

My point is, the hysteria going around social media over these “losses” is limited to a tiny bubble of people bouncing their ideas around in an echo chamber.

These few elections are in no way an indicator of America shifting to the left. They are, however, a reminder that our country is thoroughly divided on almost every issue and policy.

Conservatives and progressives could not be more opposed in every way.

A case study in the politics of entitlement spending

I would like to use the Electronic Benefits Transfer (EBT) system that distributes Supplemental Nutrition Assistance Program (SNAP) benefits debate as a model for this division between left and right. I think it’s revealing.

EBT and SNAP are what we used to refer to as “food stamps,” a service of the U.S. Department of Agriculture. The official program definition:

SNAP provides food benefits to low-income families to supplement their grocery budget so they can afford the nutritious food essential to health and well-being.

Now, I believe food subsidies are the epitome of socialism. They create a growing dependency on government that simply cannot be denied. According to the latest numbers, 41.7 million Americans are now collecting SNAP. That’s 12% of the total population! For comparison purposes, when the program first started nationally in the late 1960s, only 1.4% of the population qualified.

SNAP was intended as a stopgap. A temporary safety net for the unemployed, to keep them from starving while looking for employment. The disabled and the elderly were the primary beneficiaries of other welfare programs – those in need, not able-bodied working-age citizens. Today, able-bodied working-age citizens make up a shocking percentage of recipients. The program started out as a government helping hand… and then became a crutch. Or a trap.

I believe that’s deliberate.

The federal government shutdown showdown

Right now, the government shutdown is ongoing. Emergency funds will do little to keep food subsidies running. The sticking point of the shutdown is the continuation of healthcare benefits (more socialism). The GOP argues healthcare benefits are going to illegal immigrants. Only 5 Senate Democrats are need to cross the line and vote to fund the government, but they have refused 14 times so far.

I speculate that the Democrats may be holding out for food riots to erupt across inner cities dependent on SNAP benefits. Obviously, that can be blamed on Trump and the GOP. Does that sound unlikely? Another few weeks and those who’ve become dependent on the federal government to feed their families… What would youexpect people to do in that circumstance?

Yes, this really could happen in some major cities. Especially those where the left defund their police forces, neglecting to enforce theft and damage laws. Something on the scale of the New York City Food Riots of 1917.¹

In response, corporate chains and grocers will close up shop. Those cities could become permanent food deserts, even more dependent on federal government aid. The White House cannot force retailers to stay open, stock shelves and put employees at risk. Food riots would be genuinely disruptive and alarming, but ultimately will not have the effect that I think the radical left are hoping for.

Don’t get me wrong – there are certainly citizens out there who are in actual need of support. I would never hold it against someone if they turned to a government program for help when life goes wrong. If they’re trying to rebuild and get a job and they need a short-term boost, that’s okay. I believe charity that’s private and personal rather than government enforced is more efficient. But I grew up dirt poor. People truly in need will take whatever help they can get and usually they don’t care if it comes from the government, a church or a locally run food pantry.

The problem arises when welfare becomes a mainstay, or an entitlement. The level of dependence surrounding SNAP is truly incredible. The number of people taking to the internet to call for blood in the streets because “Trump is stealing their SNAP” is truly disturbing.

It’s the pattern we see with socialist engineering projects – they draw support because they start small and innocuous. Then, they slowly metastasize into an expensive, productivity-destroying malignancy that millions have become dependent on. Even addicted to.

Many commentators have been ringing warning bells about the potential for food riots, but I would like to point out some positive results of cuts to SNAP.

First, the program was never intended to become as large and costly as it is today. Reducing it to people who are truly in need (the disabled, elderly and short term unemployed) would help to reduce government spending. That helps to reduce both the national debt and inflation.

Second, with 42 million people on food subsidies, grocery retailers are collecting billions in taxpayer dollars based solely on artificially-created demand. This demand eats up supply. In turn, this helps to drive up food prices. Cutting down SNAP would lead to a reduction in grocery traffic and lower food prices for everyone. This is basic economics, but it’s something the left never seem to understand – more cash doesn’t mean lower prices!

Third, if labor shortages are as persistent as the BLS claims, then able-bodied people surviving on SNAP for years could be forced to finally go back to work. That supplies the labor pool and solves the worker-shortage problem. After all the talk of deportations leaving industries without workers? That goes away.

“Free stuff” is not free

There is always a terrible price to be paid for government-subsidized living. And I’m not just talking about another line item on the federal ledger.

There are only two kinds of people who support long term welfare for the able bodied. First, the entitled people who are lazy and don’t want to work for their livelihoods, who think they deserve their lifestyles to be subsidized by the taxes paid by productive workers. Second, the politicians who want the first group’s votes.

Zohran Mamdani won in New York mostly because of his many promises of socialist handouts.² Government-run grocery stores with fixed prices on cheap food. A rent freeze. Free public transportation. Universal free daycare. Nearly doubling the current minimum wage. Handouts for minorities and low-income residents.

What’s the motive here? Mamdani is growing a “free stuff army,” and the only way he can fund these programs is through taxation. He has admitted this. Raising corporate taxes nearly 50%?³ What could go wrong?

He says the rich and corporations will pay the bill, but we’ve seen similar attempts. Cities like Seattle and San Francisco tried this sort of taxation/redistribution plan. They all end the same way – with wealthy residents fleeing the city by the thousands, and taking their businesses with them.

The “generous” politicians are left with only middle-class taxpayers – who then bear the pain of funding those big “free stuff” programs.

See, the goal of the far-left is to make everyone equal: At least equally poor. Meanwhile the wealthy can simply leave. Depart for jurisdictions where they are appreciated rather than punished. That’s why both socialism and communism lead to a larger wealth gap, not a smaller one.

Mamdani will likely attempt a “capital flight tax,” attempting to confiscate wealth on exit of the city. This will not slow the flood. Businesses and money will rush out of New York City in a tidal wave. The rent freeze will push many property owners to either stop leasing or sell their properties, resulting in a shrinking rental market for the poor and middle classes.

Within 2-3 years, the metropolis, the financial capital of the world, will become an economic wasteland.

Socialism only works when you can force everyone to participate in the scam. And even then it still ends with a far lower standard of living for nearly everyone (except the ruling class, of course – those who make the laws always exempt themselves). The sole exceptions in human history are a few, highly homogeneous countries that enjoy relatively small, monocultural populations and vast natural resources (Norway, Sweden, Finland, arguably Canada).

Is America facing food riots if the shutdown continues? Probably. In limited pockets of the country certainly, but largely in places where the local economy is already suffering… In other words, those who’ve elected leftists will suffer the most.

Some worry whether the U.S. could slide into outright communism as a result? Could Mamdani be just the beginning?

No. That’s not going to happen.

Elections are not the only factor in the direction of a nation. Millions of conservatives and patriots are simply not going to allow widespread socialism to take hold. (We’ve already had a taste of that under the Biden administration, and we know exactly how unpleasant it is.)

Granted, we’ve seen many radical leftists brag about how they plan to take revenge for Trump’s 2024 win once they get back into power.

I believe America would descend into civil war before we allowed creeping socialism to rob us of our liberties. And in that circumstance, the left will lose.

When an economy drifts toward dependency, it isn’t proof of moral failure – it’s a warning sign. The harder it becomes for families to stand on their own, the more fragile the entire system grows. Whether you blame socialist policy, inflation or simple inertia, the result is the same: more Americans looking to Washington for the kind of stability Washington can no longer guarantee.

That’s why I believe every household should have a plan that doesn’t rely on the next vote in Congress. For generations, people have turned to tangible assets – especially physical gold – as a way to preserve financial independence and personal liberty when promises start to fray.

If you’re looking to diversify beyond government reach, start by learning how a Precious Metals IRA works. Get started by requesting your free info kit today.