“From The Mouths Of Babes”: The Ugly, Immoral, Destructive War Against Food Stamps
Like many observers, I usually read reports about political goings-on with a sort of weary cynicism. Every once in a while, however, politicians do something so wrong, substantively and morally, that cynicism just won’t cut it; it’s time to get really angry instead. So it is with the ugly, destructive war against food stamps.
The food stamp program — which these days actually uses debit cards, and is officially known as the Supplemental Nutrition Assistance Program — tries to provide modest but crucial aid to families in need. And the evidence is crystal clear both that the overwhelming majority of food stamp recipients really need the help, and that the program is highly successful at reducing “food insecurity,” in which families go hungry at least some of the time.
Food stamps have played an especially useful — indeed, almost heroic — role in recent years. In fact, they have done triple duty.
First, as millions of workers lost their jobs through no fault of their own, many families turned to food stamps to help them get by — and while food aid is no substitute for a good job, it did significantly mitigate their misery. Food stamps were especially helpful to children who would otherwise be living in extreme poverty, defined as an income less than half the official poverty line.
But there’s more. Why is our economy depressed? Because many players in the economy slashed spending at the same time, while relatively few players were willing to spend more. And because the economy is not like an individual household — your spending is my income, my spending is your income — the result was a general fall in incomes and plunge in employment. We desperately needed (and still need) public policies to promote higher spending on a temporary basis — and the expansion of food stamps, which helps families living on the edge and let them spend more on other necessities, is just such a policy.
Indeed, estimates from the consulting firm Moody’s Analytics suggest that each dollar spent on food stamps in a depressed economy raises G.D.P. by about $1.70 — which means, by the way, that much of the money laid out to help families in need actually comes right back to the government in the form of higher revenue.
Wait, we’re not done yet. Food stamps greatly reduce food insecurity among low-income children, which, in turn, greatly enhances their chances of doing well in school and growing up to be successful, productive adults. So food stamps are in a very real sense an investment in the nation’s future — an investment that in the long run almost surely reduces the budget deficit, because tomorrow’s adults will also be tomorrow’s taxpayers.
So what do Republicans want to do with this paragon of programs? First, shrink it; then, effectively kill it.
The shrinking part comes from the latest farm bill released by the House Agriculture Committee (for historical reasons, the food stamp program is administered by the Agriculture Department). That bill would push about two million people off the program. You should bear in mind, by the way, that one effect of the sequester has been to pose a serious threat to a different but related program that provides nutritional aid to millions of pregnant mothers, infants, and children. Ensuring that the next generation grows up nutritionally deprived — now that’s what I call forward thinking.
And why must food stamps be cut? We can’t afford it, say politicians like Representative Stephen Fincher, a Republican of Tennessee, who backed his position with biblical quotations — and who also, it turns out, has personally received millions in farm subsidies over the years.
These cuts are, however, just the beginning of the assault on food stamps. Remember, Representative Paul Ryan’s budget is still the official G.O.P. position on fiscal policy, and that budget calls for converting food stamps into a block grant program with sharply reduced spending. If this proposal had been in effect when the Great Recession struck, the food stamp program could not have expanded the way it did, which would have meant vastly more hardship, including a lot of outright hunger, for millions of Americans, and for children in particular.
Look, I understand the supposed rationale: We’re becoming a nation of takers, and doing stuff like feeding poor children and giving them adequate health care are just creating a culture of dependency — and that culture of dependency, not runaway bankers, somehow caused our economic crisis.
But I wonder whether even Republicans really believe that story — or at least are confident enough in their diagnosis to justify policies that more or less literally take food from the mouths of hungry children. As I said, there are times when cynicism just doesn’t cut it; this is a time to get really, really angry.
By: Paul Krugman, Op-Ed Columnist, The New York Times, May 30, 2013
“Two America’s Truer Now Than Ever”: Perishing On A Lonely Island Of Poverty In The Midst Of A Vast Ocean Of Material Prosperity
You may think you know about Martin Luther King, Jr., but there is much about the man and his message we have conveniently forgotten. He was a prophet, like Amos, Isaiah and Jeremiah of old, calling kings and plutocrats to account — speaking truth to power.
King was only 39 when he was murdered in Memphis 45 years ago, on April 4th, 1968. The 1963 March on Washington and the 1965 March from Selma to Montgomery were behind him. So was the successful passage of the Civil Rights Act and the Voting Rights Act. In the last year of his life, as he moved toward Memphis and his death, he announced what he called the Poor People’s Campaign, a “multi-racial army” that would come to Washington, build an encampment and demand from Congress an “Economic Bill of Rights” for all Americans — black, white, or brown. He had long known that the fight for racial equality could not be separated from the need for economic equity — fairness for all, including working people and the poor.
Martin Luther King, Jr., had more than a dream — he envisioned what America could be, if only it lived up to its promise of life, liberty, and the pursuit of happiness for each and every citizen. That’s what we have conveniently forgotten as the years have passed and his reality has slowly been shrouded in the marble monuments of sainthood.
But read part of the speech Dr. King made at Stanford University in 1967, a year before his assassination and marvel at how relevant his words remain:
“There are literally two Americas. One America is beautiful for situation. And in a sense this America is overflowing with the milk of prosperity and the honey of opportunity. This America is the habitat of millions of people who have food and material necessities for their bodies, and culture and education for their minds; and freedom and dignity for their spirits…
“…Tragically and unfortunately, there is another America. This other America has a daily ugliness about it that constantly transforms the buoyancy of hope into the fatigue of despair. In this America millions of work-starved men walk the streets daily in search for jobs that do not exist. In this America millions of people find themselves living in rat-infected vermin-filled slums. In this America people are poor by the millions. They find themselves perishing on a lonely island of poverty in the midst of a vast ocean of material prosperity.”
Breathtakingly prescient words as we look around us at a society where the chasm between the super-rich and poor is wider and deeper than ever. According to a Department of Housing and Urban Development press release, “On a single night last January, 633,782 people were homeless in the United States.” The Institute for Policy Studies’ online weekly “Too Much” notes that single-room-occupancy shelter rates run about $558 per month and quotes analyst Paul Buchheit, who says that at that rate, “Any one of America’s ten richest collected enough in 2012 income to pay an entire year’s rent for all of America’s homeless.”
But why rent when you can buy? “Too Much” also reports that the widow of recently deceased financier Martin Zweig “amid a Manhattan luxury boom” has placed their apartment at the top of the posh Pierre Hotel on the market for $125 million: “A sale at that price would set a new New York record for a luxury personal residence, more than $30 million over the current real estate high marks.”
Meanwhile, a new briefing paper from the advocacy group National Employment Law Project (NELP) finds there are 27 million unemployed or underemployed workers in the U.S. labor force, including “not only the unemployed counted by official jobs reports, but also the eight million part-time workers who would rather be working full-time and the 6.8 million discouraged workers who want to work but who have stopped looking altogether.” Five years after the financial meltdown, “the average duration of unemployment remains at least twice that of any other recession since the 1950s.”
And if you think austerity’s a good idea, NELP estimates that, “Taken together, the ‘sequester’ and other budget-cutting policies will likely slow GDP this year by 2.1 percentage points, costing the U.S. economy over 2.4 million jobs.”
Walmart’s one of those companies laying people off, but according to the website Business Insider, the mega-chain’s CEO Michael Duke gets paid 1,034 times more than his average worker. Matter of fact, “In the past 30 years, compensation for chief executives in America has increased 127 times faster than the average worker’s salary.”
Two Americas indeed.
By: Bill Moyers and Michael Winship, Moyers and Company, April 10, 2013
“MInd Boggling”: Tennessee Advances Legislation That Would Tie Welfare To Children’s Grades
Two Tennessee lawmakers introduced legislation that would tie welfare assistance under the Temporary Assistance for Needy Families program to the educational performance of students who benefit from it, and the legislation was approved by committees in both the state House and Senate last week.
Under the legislation brought by two Republicans, a student who doesn’t not make “satisfactory progress” in school would cost his or her family up to 30 percent of its welfare assistance, the Knoxville News and Sentinel reported:
The bill is sponsored by Sen. Stacey Campfield, R-Knoxville, and Rep. Vance Dennis, R-Savannah. It calls for a 30 percent reduction in Temporary Assistance for Needy Families benefits to parents whose children are not making satisfactory progress in school.
As amended, it would not apply when a child has a handicap or learning disability or when the parent takes steps to try improving the youngster’s school performance — such as signing up for a “parenting class,” arranging a tutoring program or attending a parent-teacher conference.
When Campfield introduced the legislation in January, he said parents have “gotten away with doing absolutely nothing to help their children” in school. “That’s child abuse to me,” he added. Tennessee already ties welfare to education by mandating a 20 percent cut in benefits if students do not meet attendance standards, but this change would place the burden of maintaining benefits squarely on children, who would face costing their family much-needed assistance if they don’t keep up in school.
TANF, meanwhile, is failing students and their families. It serves fewer impoverished families and children than its predecessor did before the 1996 welfare reform law was instituted, and it especially failed during the Great Recession, when the rate of families served fell in 35 states despite increases in both poverty and unemployment. And Tennessee’s welfare program is hardly robust — the maximum benefit is $185 a month and hasn’t changed since 1996. Given that low-income students already struggle to keep up in school, further reducing the already-modest benefits they receive from TANF isn’t likely to improve educational outcomes. It could instead make them worse.
By: Travis Waldron, Think Progress, April 1, 2013
“Poor People Don’t Just Disappear”: This Is What Happens When You Rip A Hole In The Safety Net
America’s social safety net, such as it is, has recently come under some scrutiny. Chana Joffe-Walt’s in-depth exploration of the increase in people getting Social Security Disability benefits at NPR got many listeners buzzing. Then in The Wall Street Journal, Damian Paletta and Caroline Porter looked at the increase in the use of food stamps, called SNAP. All three journalists look at the increasing dependence on these programs and come away puzzled: Why are so many people now getting disability and food stamp payments?
The answer is two-fold. Recent trends give us the first part of the explanation. Yes, as Paletta and Porter note, the economy is recovering and the unemployment rate is falling. But, as they recognize, the poverty rate is also rising. And therein lies the rub: people are getting jobs but staying poor. The available jobs are increasingly low-wage and don’t pay enough to live off of. And the big profits in the private sector haven’t led to an increase in wages.
GDP and employment may be doing well, but that hasn’t done much for those at the bottom of the totem pole. As the WSJ article points out, 48.5 million people were living in poverty in 2011, up from 37.3 million in 2007, a 30 percent increase. This is despite an unemployment rate that’s fallen off its peak. Some of the fall in the unemployment rate has been driven by people simply giving up on looking for a job altogether. But those who do get jobs are likely trading their once middle-class employment for low-wage work. The National Employment Law Project has found that mid-wage jobs have been wiped out during the recovery in favor of low-wage work: low paying jobs grew nearly three times as fast as mid-wage or high-wage work.
But there’s a deeper explanation that goes beyond the current economic picture. Aren’t there other programs for the increasing ranks of people living in poverty to turn to? Unfortunately, we’ve worked hard to weaken key parts of the safety net by changing how programs operate and then cutting back on their funds. Consequently, the number of people who are reached by programs for the poor has shrunk. But when you take away someone’s lifeline, they don’t stop needing it. So they either suffer hardship or find support elsewhere. What disability insurance and SNAP have in common is that they are fully funded by the federal government, which also can set the eligibility requirements. While states narrow eligibility requirements for TANF or unemployment insurance, the federal government can leave them (relatively) more open for SNAP and disability. That leaves them absorbing those who we’ve thrown off the rolls of other programs.
Unemployment benefits are where people turn when they lose a job and need income before getting back to work. But due to financial and other requirements, not everyone gets them. These rules vary state by state because states are in almost complete control of the program. They set their own eligibility criteria and benefit levels and are also on the hook for most of the funding for the benefits. As the Center on Budget and Policy Priorities reports, “the federal government pays only the administrative costs.”
Unlike the federal government, states have constrained budgets and most have to balance them every year. These budgets get even tighter in a downturn when people lose jobs and don’t pay as many taxes. On top of this, states have come under pressure from business groups during good times to reduce the contributions they use to fund the reserves that pay out benefits when things get tough. So many states have cut back on eligibility or benefit amounts in light of squeezed budgets. Given all of these constraints on benefits, only about a third of all children whose parents were unemployed at some point in 2011 actually saw any unemployment insurance benefits. They were far more likely to get food stamps, a federally funded program that has been much more flexible.
This story of a program financed by states that hasn’t been able to keep up with demand is the same for another huge part of the social safety net: welfare, or as we know it now, TANF. TANF does even worse than unemployment: it reaches just 10 percent of the children living with unemployment parents and just 30 percent of those living in poverty. The program used to do much better: in 1996, it reached 70 percent of poor families with children living in poverty. But then there was welfare reform, which turned it from a cost-sharing model to a block grant. Rather than the federal government sharing the costs with the states, the government now doles out lumps of cash and mostly lets states handle the rest. That lump doesn’t change even if the economy gets worse and more people live in poverty—and hasn’t even kept up with inflation.
While welfare reformers initially claimed victory as rolls fell during a booming 90s economy, the numbers have continued to fall even as jobs have disappeared. The poverty rate among families is back up to 1996 levels, but TANF’s caseload has fallen by 60 percent since then.
These families aren’t magically de-impoverished when they’re kicked off of government support programs. So they either go hungry or find other means of support. Enter SNAP and disability. SNAP has grown by 45 percent to meet increased need in the poor economy. The federal government was able to increase funding and waive some barriers to entering the program.
The CBPP reports that the growth in the use of disability insurance, on the other hand, is in large part due to demographic factors—an aging population and women’s increased entrance into the workforce—which accounts for half its growth since 1990. The elderly are far more likely to be disabled than younger workers, and more women workers means more workers who might become disabled. Other factors that contributed to its growth include the economic downturn. Joffe-Walt reports on how disability has dovetailed with welfare pruning its rolls. As she shows in two graphs, the number of low-income people on disability rose just as the number of families on welfare declined. Disability receipts also rise as unemployment rises. To qualify for disability, an applicant must have, as CBPP puts it, “little or no income and few assets”—which means that if unemployment and poverty rise, more people will fit this description. As Harold Pollack points out, “If you have a bad back, and the only jobs available are manual labor, that’s a real limitation. You’re unable to work. So it very much matters that we’re in a deep recession and a lot of the opportunities people faced are limited.”
Other than elderly disabled workers, those who sign up for disability are those who can’t even dream of finding a job that doesn’t require physical exertion and have no other income—thus leaving them with no where to turn but disability. After all, unemployment only lasts so long and TANF now comes with strict work requirements. Disability steps in when those with low education levels who live in communities based around industry—hard manual labor—lose their jobs and fall into poverty.
This is what happens when you burn enormous holes in the fabric of the social safety net: people either fall through or cling to the remaining parts. We can certainly debate whether we want food stamps and disability to carry so much of the burden of supporting the poor and vulnerable. In fact, this all seems to point to the simplest answer, which is to just hand money to those in poverty rather than funnel it through these different programs that may or may not actually meet people’s needs. But what we shouldn’t do is assume that food stamps and disability are bloated programs because so many people rely on them and then jump to cutting them back. Poor people don’t disappear just because we slash the programs they rely on. They still struggle to get by. That’s the lesson we should have learned over the past two decades.
By: Bryce Covert, The Nation, March 28, 2013
“No Excuse For Inaction”: The Awful Race Disparities That Still Haunt Us
Even though a black family lives in the White House, hardly anyone seriously argues that we live in a postracial society. That aspirational description of 21st century America came into vogue about four years ago, as President Barack Obama raced to victory in the 2008 presidential election, and a great number of black and white Americans wanted to believe the nation was finally closing the books on its discriminatory history.
But no. President Obama’s election didn’t suddenly sweep away all the accumulated consequences of past racism in our society. The preexisting racial disparities, so engrained in the fabric of our economy and culture, didn’t erase themselves in the wake of his victory.
As my Progress 2050 colleagues Christian E. Weller, Julie Ajinkya, and Jane Farrell make regrettably clear in their recently released report, “The State of Communities of Color in the U.S. Economy: Still Feeling the Pain Three Years Into Recovery,” racial and ethnic minority groups aren’t living in a paradise free of racial disadvantage. Quite the contrary, their research demonstrates that people of color aren’t benefiting apace with white Americans as our nation gradually rebounds from the financial collapse and economic recession that gripped us all when President Obama took office:
[T]he data we summarize in this report shows that communities of color are substantially less likely than their white fellow citizens to enjoy the opportunities that come from having a good job, owning a home, and having a financial safety cushion in the form of health insurance, retirement benefits, and private savings. This difference exists because economic opportunities eroded faster for communities of color than for whites during the Great Recession—and those opportunities have been coming back much more slowly for communities of color than for whites during the economic recovery.
The disparities Weller, Ajinkya, and Farrell write about aren’t new. Anyone who’s paid scant attention to the drumbeat of sour economic news knows that white unemployment, while at near-record heights, never drew within spitting distance of the chronically high rates suffered by African Americans and Latinos. As a result of this one fact, my colleagues write, a host of other calamities followed for people of color during the economic downturn like toppling dominoes, including:
– Black Americans enjoying fewer job opportunities than all other racial and ethnic groups.
– Poverty rates, already higher for communities of color, rising faster in the recession and declining slower during recovery than for white Americans
– Homeownership, a major source of financial security, disappearing faster for black Americans during the recession and recovery than for white Americans
Those are old, bitter, and racially disparate facts. But what is especially galling is the yawning silence and indifference that seems to accompany the periodic recitation of them. Worse, there exists in some conservative quarters a refusal to acknowledge the truth and an eagerness to embrace discredited notions about postracialism. Acting as if racial disparities don’t exist or believing we’re now living in some fantasy world free of racial divisions is nothing more than an excuse to preserve the status quo. It serves to protect the advantages of those who are already employed and comfortable, while keeping racial and ethnic minorities locked out of the improving economy.
But despite the cloudy pessimism disclosed in the report, there also exists the opportunity for hopeful change. More than a catalogue of racial disparities, the report provides a roadmap for policies that, if implemented, would help equalize the burdens faced by people of color. Specifically, it suggests federal policies that would accelerate job creation, shore up unemployment insurance, raise the minimum wage, increase access to health insurance, and implement comprehensive immigration reform to protect workers’ rights.
Armed with the facts of disparity and a prescription for change, policymakers have no excuse for inaction. Reporting the bad news, as Weller, Ajinkya, and Farrell have done, removes the blinders from their eyes. Policymakers’ indifference to the pain of their fellow citizens can only be interpreted as willing refusal to ensure that all Americans—including communities of color—share equitably in the rebuilding and recovery of the nation’s economy.
By: Sam Fulwood III, Center for American Progress, Published in AlterNet, April 17, 2012
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