Summary
David Macpherson, Ph.D., Trinity University’s E.M. Stevens Professor of Economics, warned in a KSAT 12 interview that a pause in SNAP benefits could have far-reaching consequences for the Texas economy. His analysis explains how reduced consumer spending could ripple through businesses, supply chains, and employment.
Economists are sounding the alarm as the federal shutdown threatens to halt Supplemental Nutrition Assistance Program (SNAP) benefit payments. David Macpherson, Ph.D., E.M. Stevens Professor of Economics and chair of the economics department at Trinity University, noted that more than $600 million in monthly SNAP spending would vanish from Texas’ economy overnight. He warned that as households trim grocery budgets, businesses across sectors will feel the squeeze, which will lead to ordering less, holding smaller inventories, and potentially laying off workers if the funding pause drags on. Even if benefits are eventually restored, Macpherson cautioned, the ripple effects may be long-lasting. Watch or read the full interview here.