“Preserving Welfare For The Rich”: Farm Subsidies Reveal Congressional Double Standard
Congress has left me confused. Stunned, actually, as well as bewildered, chagrined and slightly depressed. The GOP-dominated House has passed a bill that defies compassion, mathematics and common sense.
OK, so there’s nothing unusual about that. Point taken.
But the recent passage of a farm bill, after months of delay, is an especially sharp example of congressional priorities — protect the rich and punish the poor, comfort the comfortable while brutalizing the afflicted. The bill will cut the Supplemental Nutrition Assistance Program (SNAP), usually known as food stamps, while preserving subsidies for farmers, most of whom could get by quite nicely without help.
By contrast, many Americans are struggling with a globalized, roboticized economy that has devalued the average worker. The new economy has forced down wages, eliminated job security and abandoned traditional perks such as pensions. It is quite possible to work 40 or 50 hours a week and still need help to put food on the table, as the managers of food pantries around the country will attest.
Yet, congressional observers are predicting that the farm bill will pass the Senate and get President Obama’s signature. While most Democrats don’t like the cuts, the current bill, they figure, is the best they can do. It takes about 1 percent from SNAP — around $800 million a year in the $80 billion-a-year program — but that’s less than conservatives had initially sought.
Still, if Republicans really care about deficits, if they really want to rein in government, if they believe people ought to stand on their own two feet and refuse the “welfare state,” why are they preserving welfare for those who need it least? Do they not see the glaring hypocrisy in their insistence on farm subsidies?
The bill does end the least politically defensible part of farm welfare: direct payments, paid to farmers whether they plant or not. But it continues a host of other unnecessary programs that cost billions — including crop subsidies and crop insurance. Indeed, the bill increases some crop subsidies, such as those to Southern peanut farmers. And the remaining programs are just as bad as the direct payments.
Take crop insurance, which has its roots in the Dust Bowl era. Though conditions have changed substantially since then — the small family farmer has virtually disappeared — crop insurance has mushroomed. In 2012, according to The Insurance Journal, taxpayers spent $14 billion insuring farmers against a loss of income. Is there any other business in America that gets that sort of benefit? Aren’t farmers supposed to be entrepreneurs willing to take risks?
This farm welfare comes at a time when agricultural income is soaring. Last year, farm income was expected to top $120 billion, its highest mark, adjusted for inflation, since 1973, the Insurance Journal said. Lots of millionaires and billionaires are on the list of those receiving the assistance.
One case of mind-boggling hypocrisy is that of U.S. Rep. Stephen Fincher, a Republican and a farmer from Frog Jump, TN, who collected nearly $3.5 million in subsidies from 1999 to 2012, according to the Environmental Working Group. In 2012, he received $70,000 in direct payments alone — again, money paid to farmers whether they plant or not. (Can anyone say “moochers” and “takers”?)
Fincher, however, supports draconian cuts to food stamps. During a congressional debate over the SNAP program, he said, without apparent irony: “We have to remember there is not a big printing press in Washington that continually prints money over and over. This is other people’s money that Washington is appropriating and spending.”
I don’t know why the cognitive dissonance doesn’t make his brain explode.
Fraud, by the way, is rampant in farm subsidies, although you’re unlikely to hear anything about it. While the occasional welfare cheat or food stamp grifter is held up as an example of widespread abuse, neither politicians nor reporters talk much about the fraud involved in agricultural programs. You have to burrow into reports from the Government Accountability Office for that. They point to millions stolen by farm cheats.
It’s enough to make you wonder what the food stamp critics are really upset about. Government spending? Or giving the working poor a little more to eat?
By: Cynthia Tucker, The National Memo, February 2, 2014
“Casting Aside The Weak And Fragile”: Cuts To Food Stamp Program Reveal Congressional Hypocrisy
For decades, I’ve proudly asserted that “nobody starves to death in America.” The comment has been addressed to acerbic critics of the American government, often foreign visitors, who insist that the United States is a mean-spirited place that casts aside its weak and fragile citizens.
I still contend that nobody starves to death here, but I’ve had to modify my claims about the country’s social safety net. Even if no one dies for lack of basic nutrition, plenty of people go to bed hungry every night. And if Congress’ harsh Republican caucus has its way, some may starve.
That’s because the band of ultraconservatives who control the House are bent on deep cuts to the Supplemental Nutrition Assistance Program (SNAP), otherwise known as food stamps. They passed a farm bill laden with welfare for farmers, but they left out one of its biggest traditional components: food stamps. It was the first time since 1973 that the nutrition program had been left out of the farm bill.
Now, negotiations have started between the Senate and the House to try to reconcile the upper chamber’s more charitable version with the one the lower chamber put together. It will be a tough slog since the two bills are billions of dollars apart. The Senate wants to cut $4 billion from SNAP over 10 years, while the House wants to cut nearly $40 billion.
Perhaps the most appalling thing about the farm bill presented by the ultraconservatives in the House is that it makes little pretense of cutting spending by ferreting out wastefulness or fraud, no feint at an all-out assault on the deficit. Instead, this is just a base and ugly assault on the working poor.
Oh, conservatives claimed that their cuts to food stamps were in response to fraud, as their claque filled the airwaves with the same example of a carefree California surfer enjoying his “wonderful” life on food stamps. They neglected to point to government data which show that SNAP is among the most efficient of government programs, with fraudulent spending restricted to about 2 percent of its budget.
Meanwhile, the same conservatives have said nothing — nothing — about the millions of dollars in fraud related to farm subsidies. A June audit by the Government Accountability Office found that millions of dollars in subsidies have been sent to farmers who’ve been dead for at least a year. That’s just the illegal stuff.
That doesn’t touch the entirely legal fraud: The entire network of agricultural subsidies is a massive boondoggle, welfare to people who hardly need it. While conservatives hector the working poor about their alleged laziness, some agricultural programs pay farmers not to plant. Why don’t Fox News and Rush Limbaugh ever talk about that?
Farmers hardly need the money. (Forget about the struggling family farmer of lore. He has largely disappeared.) Earlier this year, the Agriculture Department projected that farm income in 2013 would be $128.2 billion, the highest since 1973.
One of the more egregious examples of the sheer hypocrisy surrounding the debate over the farm bill was revealed by The New York Times, which wrote about U.S. Rep. Stephen Fincher (R-TN). He voted for the bill that eviscerates SNAP, but he received nearly $3.5 million in farm subsidies from the government between 1999 and 2012, according to the Times.
“We have to remember there is not a big printing press in Washington that continually prints money over and over,” he said, apparently without irony.
Conservatives claim to be alarmed by the dramatic increase in food stamp outlays, up 77 percent since 2007 to a record high of $78.5 billion in fiscal year 2012. (The SNAP program is already scheduled for a 5 percent cut as a provision related to the 2009 stimulus bill lapses.) But that’s because so many more people are struggling to make ends meet.
The Great Recession accelerated a trend that has hollowed out the middle class, leaving many Americans without college degrees in a downward spiral. The U.S. Department of Agriculture estimates that nearly 49 million Americans are “food insecure” — bureaucratese that means they don’t have enough to eat.
If we aren’t willing to see to it that they have basic nutrition, I’ll have to reconsider what I believe about my country.
By: Cynthia Tucker, The National Memo, November 2, 2013
“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
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