I read somewhere recently that generally speaking when food costs exceed 30% of disposable income there are usually really bad consequences to law and order (hungry people do desperate things), and the US is already at 20% and rising.
Also, when people are faced with feeding their family or paying other bills which option do you think they will choose?
Probably be some major financial problems due to defaults on mortgages, rent, utilities, credit cards, loans, etc. It’s easy to see Washington responding with a debt jubilee.
“US is already at 20% and rising”
And rent/mortgages are usually between 25-30% of household income as well, and taxes are between 35-50% of income depending on which state you live in.
Which leaves, for many people, somewhere quite close to zero % once you pay for food, roof and Uncle Sam. Something’s got to give.