The Indicator from Planet Money Trump's cuts come for food banks
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May 5, 2025 The hosts kick off with a hilarious take on the Beige Book and introduce the Beigy Awards. They discuss a troubling shift in the economy, moving from 'uncertainty' to 'freeze,' revealing hiring stagnation among businesses. The conversation turns serious as they address the impact of USDA budget cuts on food banks, revealing a potential loss of 2.4 million pounds of food. Finally, they spotlight the ongoing challenges faced by food banks amid rising costs and diminishing aid, emphasizing innovative strategies to secure essential food donations.
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Hiring Freezes Signal Slowdown
- Multiple businesses reported hiring freezes in the latest Beige Book, which harms job growth needed to keep unemployment stable.
- Employers are cautious, preferring to freeze hiring over layoffs but this still indicates economic slowdown.
Spreading Price Increases Broadly
- Firms plan to spread cost increases broadly to stabilize revenue by increasing prices across many product lines.
- Businesses prefer smaller price bumps everywhere rather than making a few products unaffordable.
Food Banks Face Severe Cuts
- A food pantry had to cut food provisions from 3-5 days to 2 days per month due to USDA funding cuts.
- The USDA cut $500 million, leading to a loss of 2.4 million pounds of food at a Midwest food bank.