Latest Food Stamp Data a Sobering Read

Fifteen months ago, Britain's Independent newspaper ran the following cover story, "USA 2008: The Great Depression," which drew on the fact that a then-record 28 million Americans depended on food stamps to survive.

While many commentators in the U.S. scoffed at what they claimed was sensationalist drivel, I'm wondering if they still feel the same way today, especially given the news that a record 33.8 million participated in the Agriculture Department's Supplemental Nutrition Assistance Program in April (not to mention, of course, all the other dismal reports we've seen over the past year or so)?

Regardless, the take on the latest numbers of those receiving assistance, as detailed (and graphically highlighted) by Paper Economy - A US Real Estate Bubble Blog in "On The Stamp: Food Stamp Participation April 2009," makes for sober reading:

As a logical consequence of the prolonged economic downturn it appears that participation in the federal food stamp program is on the rise.

In fact, household participation has been climbing so steadily that it has far surpassed the last peak set as a result of the immediate fallout following hurricane Katrina.

The latest data released by the Department of Agriculture shows that, on a year-over-year basis, household participation has increased a whopping 21.16% while individual participation, as a ratio of the overall population, has increased 19.14%.

The April results confirm that participation is continuing to climb dramatically, likely as a result of the recent jump in total unemployment, driving the nominal benefit costs up an astounding 58.52% on a year-over-year basis to $4,499,152,630 for the month.

Looking at the last chart that plots the total unemployment rate (unemployment rate of all traditionally unemployed workers plus all marginally attached and part time workers) and the population adjusted individual program participation rate normalized since 2005, one can plainly see that program participation would be expected to continue its surge.

Comments

[Hask:]

Sobering statistics. Nearly 10% of Americans are receiving food stamps. Wow!

Jul 08 11:16 AM

[John Galt:]

Is that a picture of Thomas Jefferson on the food stamp? ( I have thankfully never seen one). If that really is Jefferson's face on the food stamp, he's rolling over in his grave right now. He's about the last face I'd expect to see on one as it goes against all of his beliefs!

Jul 08 04:58 PM

[Tony Petroski:]

From the article: "Fifteen months ago, Britain's Independent newspaper ran the following cover story, "USA 2008: The Great Depression," which drew on the fact that a then-record 28 million Americans depended on food stamps to survive."

It's not a "fact" that 28 million Americans depended on food stamps "to survive." The fraud in this program is staggering and in the age of Obama, the number of people who will take anything they can get as "free money" is on the rise--it's called "spreading the wealth around." There is a brisk black market in these stamps and those who are selling them are finding a way "to survive." The widespread use of this program along with all the other anti-poverty programs is expanding poverty and prolonging the recession.

Jul 08 05:54 PM

[cameroni:]

Interesting thoughts Tony, but do you really think 33 million Americans are taking advantage of "free food" for ease and personal benefit. Survival may be a relative term in our society but the recipients are no less hungry or angry when staring down at their wealthy neighbors and comparing their own loss of security and income continuity.

Surely the programs growth mirrors the massive loss of jobs throughout the economy. I can understand your impatience but the statistics on foreclosures alone tell us there is a crisis. Some may be taking advantage but the support is clearly needed and it forms an essential part of the social safety net.

Would you really rather have the satisfaction in denying stamps to those hurt by this recession (who may or may not be taking unfair advantage) or would you prefer to deal with a crime wave of angry and disenfranchised unemployed former neighbors?

Take away food benefits Tony and you will need a gun and plenty of ammo to protect your family, property and possessions.

Jul 08 08:45 PM

[Tony Petroski:]

Cameroni: Of the folks that I know on food stamps, many are overweight. I don't want to prevent a starving man from eating, but maybe we should give the obese "customers" diet stamps instead.

Jul 08 09:36 PM

[Al-USA:]

Well at least Tony Petroski would not deny the starving man his food stamps....

Frankly, I don't care about the relative few who might abuse the food stamp program, but I do very much care about the $trillions used to bail out the banksters and the inflationary practices which will be used to finance it now, and in the future. If you want to go after some serious "spreading the wealth around" characters, focus on the banksters. What they are getting away with makes all else look like "peanuts".

And the real prolonging of the recession/depression has nothing to do with poor folks and everything to do with the corrupt rich who are are getting bailed out.

The Rescue Package Will Delay Recovery
www.mises.org/story/3131

The Fed is Culpable
mises.org/story/1089

Jul 09 09:21 AM