If I made a ten loaves of bread in my kitchen and gave them away to my neighbors I have broken no laws, but if I charge a penny for each loaf I have probably broken multiple laws. This story is an example of a women who was reported to the “authorities” for selling homemade chicken salad. Does the word homemade even have any meaning when you see it in the grocery store? I am sure the laws and restrictions for this sort of activity vary from local to local but there are likely restrictions of some sort almost everywhere.
Did you know that the CBO recommends raising food stamp benefits as a method of “economic stimulus”? You can read Greg Mankiw’s thoughts on that here.
Well on to my economic stimulus package. I believe that if you lifted all restrictions on the preparation and sale of food (laws and taxes) and allowed one neighbor to sell to another without restriction you would see an amazing boom of enterprise. We bought a bread machine last night, we are also buying a wheat grinder. The investment will be over $300. I am positive that even my 5 year old is ready and willing to begin her bread making business and I am sure she could single handily make a return on our investment in a few months, and she would love to do it. This plan would have a greater impact than raising food stamp benefits although the processed food industry might not be too happy about it.