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Economy

Ignore The Spin: Why Food Stamp Enrollment Isn’t Shrinking (Yet)

The Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, expanded rapidly during the Great Recession, when millions of workers lost jobs and entered poverty, forcing them to turn to the government’s social safety net for help. But even as the economy has begun to recover, SNAP “isn’t shrinking back alongside the recovery,” the Wall Street Journal warned today.

States and the federal government both expanded SNAP access before and during the recession in an attempt to extend more aid to struggling Americans. That has led Republicans like Rep. Paul Ryan (R-WI) aching to cut the supposedly “unsustainable” program, since its costs and enrollment are both at record levels. In the piece, the Journal admits that “the biggest factor behind the upward march of food stamps is a sluggish job market and a rising poverty rate,” but it then asks whether those expansions have made the program far more costly over the long-run and wonders why SNAP enrollment hasn’t dropped along with unemployment rates:

The food-stamp rolls have swollen since 2008 and are projected to stay that way for years. In 2008, SNAP enrollment was 28.2 million. Unemployment peaked in October 2009 at 10% and was at 7.7% as of February, but SNAP kept growing.

The Congressional Budget Office predicts unemployment will drop to 5.6% by 2017 but that SNAP enrollment will drop slightly to 43.3 million people, down 4.5 million from the current level.

That makes it very different from the other big federal support program, unemployment insurance, which shrinks as the economy improves. Continued jobless claims dropped to 3.1 million in February after peaking at 6.6 million in May 2009.

Unemployment insurance enrollment has dropped because it is based on unemployment. SNAP, however, is based on income, which is why it tracks not with the unemployment rate but with poverty levels, as this chart from the Center on Budget and Policy Priorities shows:

That SNAP isn’t shrinking at the same rate as unemployment insurance isn’t exactly a shocking revelation, especially since 58 percent of the jobs created since the recession are in low-wage sectors that are less likely to pull workers out of poverty and off of food stamps. The poverty rate rose sharply after the recession, and it hasn’t dropped significantly since the recovery began. But for all the concerns about SNAP’s long-term costs, the program is projected to return to its return to its historical spending levels by 2023:

The Journal actually acknowledges that the expansions make little difference in the cost of the program, but not until the second-to-last paragraph. “The Congressional Budget Office said reinstating eligibility limits would save around $4.5 billion over 10 years, a fraction of the program’s total cost over that time,” it writes there, all but admitting that the reason SNAP expanded is not because the government made it easier to enroll but because the economy contracted and plunged millions of people into poverty. That, in short, is exactly what the program is supposed to do.

Economy

The Myth Of ‘Dependency’: Almost All Households On Food Stamps Will Be Employed Within A Year

One of House Budget Committee Chairman Paul Ryan’s (R-WI) favorite ways of defending the House Republicans’ budget is to claim the social safety net represents a moral threat to Americans’ character, as well as a fiscal threat to their country’s budget. He’s incessantly warned of luring “able-bodied people into lives of dependency and complacency” and depriving them “of their will and their incentive to make the most of their lives.” In his latest budget, he introduced his cuts to Medicaid, nutrition assistance, and other support programs for low-income Americans with a warning that the safety net “can create a powerful disincentive to get ahead.”

Included in those cuts is a massive reduction in spending on the Supplemental Nutrition Assistance Program (SNAP). But the Center On Budget and Policy Priorities took a look at the employment situation of Americans who rely on the program, and the reality belies Ryan’s rhetoric:

Among households with children that include an adult who isn’t elderly or disabled, 87 percent of the households receiving SNAP in a given month include an individual who worked in the prior year or will work in the following year.

Ryan actually has an ongoing problem when it comes to honestly representing the SNAP program. Last year, he claimed it was “growing at unsustainable rates” — a notion that fails to account for the effects of the recession, that fails to differentiate spending in raw dollars from spending as a share of the economy, and which utterly ignores the program’s projected path over the next decade.

Ryan’s budget would cut SNAP spending by $135 billion between now and 2023 — requiring either 12 to 13 million of the 44.7 million people currently on the program to be kicked off, or a reduction in benefits of $190 a month for the poorest of American families by 2019. Nor did the 1996 welfare reform law — on which Ryan models his current budget proposals — turn out to be the success he presents it as. In the aftermath of the Great Recession, welfare’s case load grew only 16 percent, even as the numbers of the unemployed increased by 88 percent; an utter failure to keep up with the needs of impoverished Americans.

As for the safety net as a whole, CBPP cites research from the National Bureau of Economic Research that one of every seven Americans would be poor without the safety net, but are above the poverty line because of it — a total of over 40 million people.

Health

What South Africa’s Successful Push To Incentivize Healthy Eating Could Teach The U.S.

On Tuesday, the RAND Corporation published the results of a preliminary study on South Africa’s HealthyFood initiative, a benefit program sponsored through the nation’s largest private insurance company. The program provides some 260,000 South African households with up to a 25 percent rebate on healthy food purchases — “cash for carrots,” if you will — and the encouraging numbers suggest that similar initiatives could work right here in America.

While the study does suffer from some methodological snags — the biggest being that households’ eating habits were self-reported rather than observed — its authors conclude that the right level of rebates can be a strong catalyst for healthier eating habits. For instance, the survey of 350,000 HealthyFood participants and nonparticipants found that “a 10% and 25% discount on healthy food purchases is associated with an increase in daily fruits and vegetables consumption by 0.38 (95% CI: 0.37 – 0.39) and 0.64 (95% CI: 0.62 – 0.65) servings, respectively,” and that rebate participants were more likely to eat three or more servings of wholegrain foods daily while being less likely to eat foods high in sugar, salt, fried foods, processed meats, and fast food.

Admittedly, the report does not find that the healthier eating habits significantly reduced overweight rates or participants’ average BMIs. However, it does see a statistically significant correlation between higher discount rates and lower obesity, suggesting that the right amount of financial motivation can spur enough eating habit changes to make a dent in obesity rates on the macro level.

So could a similar program work in the U.S. — particularly for low-income Americans who struggle with food insecurity, and often have to resort to high-fat and high-calorie diets to get more nutritional “bang-for-the-buck”? There’s not a whole lot of data on the matter yet. But that will soon change, as a 2011 pilot program under the Supplemental Nutrition Assistance Program (SNAP) — the “Healthy Incentives Pilot” — mimics the HealthyFood initiative, offering inflated discounts of up to 30 percent cash back on healthy food purchases, and its results will be published later this year. If the findings track South Africa’s, then it could be a game changer for low-income communities often beset by unhealthy food habits and high obesity rates. And incentivizing healthy eating with rebates could be a more effective policy than more blunt and restrictive initiatives, like South Carolina Gov. Nikki Haley’s (R) controversial push to limit food stamp purchases to healthy items.

Still, the funding element is key, as the study found that higher rebate levels were required to change the eating habits of people who were entrenched in subpar diets. The South African program offers monthly discounts of up to $500 for a family and $250 for individuals — significantly higher than the average monthly SNAP allotment, which is supposed to be a supplemental benefit (although it doesn’t actually work that way in reality). But South Africa’s example suggests that, given sufficient financial backing, cash for carrots could be a worthwhile undertaking throughout America.

Health

Why Nikki Haley’s Push To Limit Food Stamps To Healthy Items Is The Wrong Way To Fight Obesity

Gov. Nikki Haley’s (R-SC) state has a serious weight problem — and she knows it. That’s why last week, flanked by public health officials, Haley announced that she will push for a controversial overhaul of South Carolina’s nutritional assistance program that would limit food stamp purchases to “healthy” items. It’s a well-meaning idea meant to tackle the state’s rampant obesity epidemic and its resulting health care costs — unfortunately, the proposal isn’t the most effective way to tackle obesity, and implementing it could end up preventing low-income Americans from receiving adequate nutrition.

Any changes to a state’s food stamp program require a waiver from the federal government, and no state has successfully received one to date. The Charlotte Observer reports that Haley will hold group meetings with food stamp recipients, public health advocates, food makers, and various other officials to determine which foods should be purchasable with food stamps — and which shouldn’t — before requesting the waiver, in an effort to sway the federal government by putting up a unified front. That means that the specifics of Haley’s plan have yet to be fleshed out, and her office did not respond to ThinkProgress’ request for more details.

Still, Haley’s statements on the matter suggest that she wants to discourage South Carolina residents from using food stamps to purchase high-fat, high-calorie, and high-sodium products. “That $1 billion [in federal nutritional assistance] no longer will go to candy and chocolate and sodas and chips — it’ll be going to apples and oranges and things that are healthy,” she said.

That’s certainly an admirable goal considering South Carolina’s abysmal public health statistics: a full third of the state’s 4.7 million resident are obese, making it the eighth most obese state in America; another third are overweight; and the state ranks second in the country for obesity-related diabetes risk. Furthermore, the cost of treating obesity-related illnesses for low-income Americans accounts for almost 12 percent of national Medicaid spending — and likely an even higher percentage in South Carolina, where 18 percent of residents are on the federal Supplemental Nutrition Assistance Program (SNAP).

But the efficacy — and the practical logistics — of Haley’s approach remains an open question. Proposals to limit food stamp purchases are a source of fierce debate among both public health and poverty advocates — not to mention supermarkets and food makers who argue that the transaction costs of separating SNAP from non-SNAP products would be too high or hurt product sales.

Read more

Economy

CNN Anchor Denounces GOP Senator For Balancing Budget On Backs Of ‘Nation’s Poor Children’

CNN’s Soledad O’Brien tore into Sen. Jeff Sessions’ (R-AL) efforts cut food stamps on CNN’s Starting Point Tuesday morning, arguing that the lawmaker’s efforts would disadvantage thousands of lower-income constituents who rely on the program. Earlier this year, Sessions proposed an amendment to the Farm Bill that would have removed $11 billion from the federal Supplemental Nutrition Assistance Program (SNAP) over 10 years. The effort ultimately failed.

The conservative lawmaker defended his proposed cuts to a visibly skeptical O’Brien, arguing that growing enrollment in food stamps during a period of shrinking unemployment suggests that Americans are free riding on the program for free government meals. O’Brien observed that Sessions himself twice voted to grow SNAP during the Bush administration and cited a study showing minimum fraud and abuse in the program.

“Twenty percent of your constituents are on food stamps and they look at the people who are actually eligible, it’s something like under 70 percent who [are] eligible who sign up,” O’Brien said:

O’BRIEN: You voted in fact in 2002 and 2008 to grow the program yourself. I think first under President Bush in 2002, and when it comes to fraud, this Center on Budget and Policy Priorities said SNAP has ‘the most rigorous quality control systems of any public benefit program in recent years, it’s received its lowest error rates on record.’ … Most people who are on it aren’t working the system, they are just hungry people. [...]

When you’re thinking of things to cut, people basically say, why are you trying to balance the budget on people making less than $23,000 a year, I think that range roughly, is the national average of a family on food stamps. So why not cut something else? There are other things that could be on the table before you pick a program that is feeding the nation’s poor children.

SESSIONS: I’m not picking a program. I say all programs need to be examined in this government. This government wasting money every day. There is no doubt about that. We have got to do better. And food stamps is a program that was totally exempt from any oversight and change when it has gone up four times in the last ten years in the amount we spend …

O’BRIEN: Two of those times you voted for it, sir. 2002 and 2008 you voted for it. Some people are saying, it’s growing because people are hurting.

SESSIONS: I voted for the ag bill that had that in it, probably so.

Watch it:

SNAP’s fraud rate rests at 1 percent and overall error rates have plunged in recent years, hitting an all-time low in 2010, according to the Center on Budget and Policy Priorities.

A study from the U.S. Department of Agriculture find that food stamps reduced the poverty rate by 8 percent in 2009 and “lifted the average poor person’s income up about six percent closer to the [federal poverty] line.” In 2010, the program kept more than 5 million Americans from falling below the poverty line and reduced the number of children living in extreme poverty — defined as less than $2 per day, before government aid — by half in 2011.

Economy

How Access To Food Stamps Leads To Better Health And Economic Outcomes

Children who have access to the federal food stamp program — now known as the Supplemental Nutrition Assistance Program (SNAP) — in the earliest years of their lives have better health and economic outcomes later in life depending on their gender, according to a new academic study of the government safety net by professors Hilary Hoynes, Diane Whitmore Schanzenbach, and Douglas Almond.

Across genders, children whose mothers had access to food stamps during pregnancy and in their earliest years were less likely to have long-term health problems like diabetes, obesity, and high blood pressure in adulthood. Women who had similar access, meanwhile, are more likely to become economically self-sufficient as adults, the study found:

We find that access to food stamps in utero and in early childhood leads to significant reductions in metabolic syndrome conditions (obesity, high blood pressure, heart disease, diabetes) in adulthood and, for women, increases in economic self-sufficiency (increases in educational attainment, earnings, income, and decreases in welfare participation).

Because nutrition is especially important for long-term development early in life, the positive effects of food stamps are especially strong for children who benefit from the program before birth and up to the age of five. The long-term developmental effects begin to subside after that age, though there are still obvious positive nutritional effects for children who remain on the program after that.

The food stamp program is especially vital in times of economic downturn or famine, the researchers wrote, since children can be exposed to lower food levels that jeopardize future development. Food stamp enrollment in the United States grew to 15 million households in 2011, according to government figures released Wednesday. The program’s growth during and after the Great Recession has come under the scrutiny of budget-cutters in Congress, even as it helps keep millions of Americans out of poverty each year.

Politics

Fox Pundit Jokes Food Stamps Could Be A Diet Plan

Fox Business kicked off Thanksgiving eve with a joke about food stamps. Discussing Newark, New Jersey Mayor Cory Booker’s challenge to live on food stamps for one week, Fox pundit Andrea Tantaros said that living on a $133 monthly allowance for food would make her look “fabulous.” Meanwhile, a record number of Americans actually rely on this budget, for less than $1.50 per meal.

STUART VARNEY (HOST): Could you live on $133 per month for food?

TANTAROS: I should try it because do you know how fabulous I’d look? I’d be so skinny. I mean, the camera adds ten pounds, it really does. I’d be looking great.

Watch it:

Far from a diet, not having enough food to eat is a harsh reality for 50 million people. The average Supplemental Nutritional Assistance Program (SNAP) household has a monthly income of $731, and 76 percent include a child, elderly or disabled person. Without SNAP, even more Americans would go hungry.

HT: Media Matters

Economy

Phoenix Mayor Attempts To Live On A Food Stamp Budget: ‘I’m Tired, And It’s Hard To Focus’

When local activist groups challenged Phoenix Mayor Greg Stanton to live on a food stamp budget for a week to mark Hunger Awareness Month, he took them up on the offer and found out just how hard it was. Stanton kept a diary on the challenge, which allotted him roughly $29 a week, the same amount 1.1 million Arizonans receive from the Supplemental Assistance Nutrition Program (SNAP) each week.

By day four, Stanton noted that he was “tired” and “it’s hard to focus” after leaving the house for work without time to scramble eggs or eat a decent breakfast:

OK- ran out the door today with no time to scramble eggs or even make a sandwich. So I’m surviving on an apple and handful of peanuts, and the coffee I took to the office until dinner. I’m tired, and it’s hard to focus. I can’t go buy a sandwich because that would be cheating- even the dollar menu at Taco Bell is cheating. You can’t use SNAP benefits at any restaurants, fast food or otherwise. I’m facing a long, hungry day and an even longer night getting dinner on the table, which requires making EVERYTHING from scratch on this budget. It’s only for a week, so I’ve got a decent attitude. If I were doing this with no end in sight, I probably wouldn’t be so pleasant.

Watch a local news report about Stanton’s challenge, via Huffington Post’s Bonnie Kavoussi:



According to Stanton’s Facebook page, the city he governs ranks 34th-worst among America’s 100 largest metro areas in terms of hunger, and one-in-four Arizona children are food insecure. Across the nation, there are more than 46 million people receiving SNAP benefits.

Despite the challenges presented by poverty and hunger, Republicans have proposed cuts to the programs that help struggling families afford food. The House GOP budget could kick millions out of SNAP and hundreds of thousands of children out of school lunch programs, exacerbating the high rates of food insecurity America’s families are already facing.

Alyssa

Five Famous Members Of The 47 Percent Who Could Teach Mitt Romney About Public Assistance

There are a lot of things deeply wrong with the vision of the world Mitt Romney laid out for a group of fundraisers in May in remarks recorded on video released by Mother Jones. There’s the idea that the very poor are sponging off the labor of the very rich. The misplaced idea that people who receive any form of government assistance inevitably vote for Democrats. But one of the things that stuck with me, as it always does, is that everyone receiving government assistance, whether in the form of tax credits, Supplemental Security Income, or help from the Supplemental Nutrition Assistance Program likes it, that help from the government is something people develop a taste for and want to continue consuming. It’s a narrative that doesn’t allow for the idea that needing help actually becomes a substantial spur to success for a lot of people. I’m sure these five people—and many others—might be able to enlighten Romney about the impact of getting help from the federal government on their lives, and what they do and don’t think they’re entitled to.

1. Natalie Hawkins, mother to Olympic gold medal gymnast Gabby Douglas: Hawkins is on long-term disability, something that doesn’t seem to have prevented her from helping raise an Olympic gymnast. Shockingly, I’m pretty sure she doesn’t enjoy having had to declare bankruptcy, or the fact that her daughter’s endorsement earnings after her Olympic all-around gold medal will probably be the thing that can lift her out of it.

2. Tobey Maguire: The actor told Barbara Walters in 2002 that “Me and my Mom would go into a grocery store and get groceries and pay for them with food stamps, and I would run out of the store embarrassed.” That doesn’t really sound to me like someone who believes “that they are victims, who believe the government has a responsibility to care for them.”

3. Oprah Winfrey: Winfrey’s mother, Vernita Lee, sometimes relied on welfare to supplement her income during Winfrey’s childhood—in fact, she gave up Winfrey’s half sister, Patricia Lee, for adoption because she was afraid the burden of raising another child would make it impossible for her to get off the welfare rolls. The experience doesn’t appear to have bred in Winfrey a love of government assistance. During the debate over welfare reform, Winfrey declared she wanted to “destroy the welfare mentality,” and gave $6 million for a program run through the Jane Addams Hull House Association to help Chicago families move off the welfare rolls.

4. Cecil Fielder: While Fielder worked his way up to the big leagues, his family couldn’t make ends meet on minor-league paychecks. His wife Stacey got the family food stamps to cover the gaps. Fielder finally made it in the bigs, and his son followed him to a Major League career. Taking some public assistance doesn’t appear to have given the family a multi-generational taste for the culture of dependency.

5. Whoopi Goldberg: Before she was an actress, she sometimes relied on public assistance—People reported that she worked however she could while trying to make it as an actress, including a stint as a morgue beautician. That doesn’t sound like someone who would have preferred to be supported by the government to winning an EGOT.

Economy

CHART: How Government Programs Keep Millions Of Americans Out Of Poverty

The U.S. Census Bureau’s annual poverty estimates, released today, found that the poverty rate remained stable in 2011 after three consecutive years of rapid increases during and after the Great Recession. But 46.2 million Americans still live in poverty, defined as less than $23,000 in annual income for a family of four.

The data also noted that government benefits played a significant role in keeping millions of Americans — particularly women, children, and the elderly — out of poverty. Social Security alone kept roughly 21.4 million people out poverty, and unemployment benefits helped an additional 2.3 million stave off poverty last year alone.

The Census Bureau estimates it poverty rate based on cash income and assistance, but many government programs, like the Supplemental Nutrition Assistance Program (SNAP) and certain tax credits aimed at combating poverty, aren’t included in its income estimates. Including SNAP, commonly known as food stamps, in the Census data would lift another 3.9 million Americans out of poverty, and including the Earned Income Tax Credit that helps low-income taxpayers would bring 5.7 million people above the poverty line. Other tax credits aimed at low-income working families, like the Child Tax Credit, would keep millions more out of poverty if they were included.

This chart from Melissa Boteach, the director of the Poverty to Prosperity program at the Center for American Progress, breaks down how many Americans avoided poverty thanks to certain government programs:

Many of these programs, however, are facing cuts as Congress attempts to reduce the federal budget deficit and national debt. The House Republican budget included massive cuts to SNAP and other food assistance programs; all told, it could have booted millions of people off of food stamps and 280,000 from the school lunch program. Under tax plans put forth by both House and Senate Republicans, meanwhile, 12 million Americans would have lost part or all of the Child Tax Credit, while six million would have lost part or all of the Earned Income Tax Credit, an effective tax hike on millions of families.

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