Dec 2 2009

An improving economy? Ask people on Food Stamps!

I keep reading that the economy is getting better but I think anyone who says this must be talking about fat cats on Wall Street.   As for everyone else, take a look at the shocking piece about the Food Stamp program that the New York Times ran on its front page on Sunday.

More than 36 million Americans qualify for and get Food Stamps, an increase of 30% or so in just the last two years.  The Food Stamp program, says the Times, helps feed nearly 13% of American adults and 25% of children.

The Food Stamp program, now called Supplemental Nutrition Assistance Program, or SNAP, is one of several food assistance programs run by the USDA.  SNAP is an entitlement program, meaning that anyone who meets income eligibility requirements can get benefits.  Even so, only two-thirds of people eligible for the program apply for and get the benefits.  What recipients get is a credit card to use at grocery stores.  The cards were worth an average of $101 per month in 2008 for individuals, and $227 for households.

SNAP participants can use the money to buy foods, seeds, and food plants.  They cannot use the cards for alcohol, tobacco, pet food, supplements, paper goods, or hot prepared foods.

So what’s going on?  Nearly 15% of American households, up a couple of percentage points this year, are considered “food insecure,” meaning that they cannot count on a reliable, legally obtained source of food from one day to the next.  Surprise!  The uptick in SNAP participation exactly parallels the uptick in jobs lost.

What do you have to do to qualify for Food Stamps?  For a family of four, your household must make less than $2,389 per month gross, or $1,838 net and meet certain other requirements.  An individual can’t make more than about $1,000 a month.   These days, 36 million Americans make less than that or otherwise qualify for food assistance, and their numbers are rising rapidly.

This doesn’t look like an improving economy to me.  Or am I missing something?

Comments

  • DennisP
  • December 2, 2009
  • 8:03 pm

Of course you’re not missing anything. Jobs lag quite a ways behind improving GDP. It’s going to take quite substantial increase in GDP to generate new jobs, but at the rate it’s going, that won’t occur until well into 2010. Paul Krugman is right: what we need right now is a sharply focussed jobs program and to hell with the cost. It continues to infuriate me that the Democrats continue to buy into Republicans’ reactionary talking points instead of standing up and uniformly asserting basic, progressive, Democratic principles of caring and concern for real people, rather than the fat cats on Wall St.

  • Maddie
  • December 2, 2009
  • 9:25 pm

I’m a full time student, currently seeking a job. When I went to the health department and applied for food benefits, they told me I have to work at least 20 hours a week in order to qualify for food stamps. So even the displaced, who might be working towards a new career, aren’t getting these “entitlement” benefits.

Just today I considered writing one of these above mentioned “fat cats,” who has gotten a smooth right on a wealthfare break, if they would like to sponsor my education. I figure if you got $80m from a government bailout, then you’ve got $20,000 for my education (most of which can be a tax write off at the end of the year, anyway).

  • JC Dwyer
  • December 3, 2009
  • 9:19 am

Maddie, your health department is incorrect – there is no work requirement for food stamps. Google “food stamps” plus your state to find a food bank or other nonprofit organization that can help you apply.

  • Marisa
  • December 3, 2009
  • 5:03 pm

If there was a work requirement, how would Octomom feed her children? Has she worked a day in her life?

  • Drew
  • December 3, 2009
  • 7:00 pm

Who is credibly saying that the economy is improving? The banks still have mountains of bad loans on houses that are still overvalued, the federal budget is irrecoverably overspent, as are the consumers. So maybe the GDP can rise on all that government spending and money printing, but we’re about to run out of the slack we’ve allowed ourselves with bailouts, cash for clunkers, home-buyers and anyone else.

It’s frustrating that much of the analysis on the economy is garbage, but if you keep an eye on budgets, you’ll see that in order to get out of debt you most have more production than consumption (money in>money out). And we’re not even close.

  • Jason
  • December 3, 2009
  • 9:00 pm

No offense Drew but the worst economy since the Great Depression isn’t going to end overnight. Many indicators are showing growth. My 401k value is almost back to what it was prior to the crash. Things are improving but it is going to take a long time. The government keeps telling us this but apparently nobody is listening. It took 8 years to get us into this mess….do people really think its going to end in 6 months?

  • annie avery
  • December 4, 2009
  • 10:38 am

one caveat to the seeds and fruit trees suggestion: if the store where you find the fruit trees does not accept food stamps, tough luck. thank goodness more and more vegetable/plant nursery stores are accepting EBT cards, not to mention the fact that farmer’s markets are accepting WIC checks, too.. i look forward to the day when the DOD will have to use that famous bake sale to fund its wars.

Social comments and analytics for this post…

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  • sb
  • December 5, 2009
  • 11:51 am

Thank you, Jason! Finally someone who’s got some sense. I really do not understand how people can expect the American Economy to magically be fixed in 6 months or even 6 years! It doesn’t work that way, Ms Nestle, and I’m sure you know that. Did you give any serious consideration to this topic or were you stuck for a story?

[...] finta di essere negli Stati Uniti dove il 13% degli adulti ed il 25% dei bambini mangiano grazie ai food stamps e quelli che non ne hanno fatto richiesta possono permettersi solo junk food) e offri come [...]

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