Like Rush Limbaugh says, 'it hard competing against Santa Clause', except until Santa gets back into is sleight and flies away. Now what happens when the money is all gone?
Food Stamp Use Swells as Unemployment Recedes
Sources: Damian Paletta and Caroline Porter, "Use of Food Stamps Swells Even as Economy Improves," March 27, 2013.
April 3, 2013
Despite a variety of indicators suggesting the economy is recovering, food stamp utilization remains high. The high participation rate is due to broadened eligibility rules, says the Wall Street Journal.
- While the financial crisis ended in 2009, enrollment in the Supplemental Nutrition Assistance Program (SNAP), formerly called food stamps, has increased dramatically.
- The number of people receiving SNAP benefits rose 70 percent between 2008 and December 2012 to a record 47.8 million individuals.
- Official estimates project that participation will rise slightly in 2013 and fall only slightly in 2014.
- The program's leniency was designed to encourage people to use the program before they became destitute, but the looser qualifications mean that program rolls are unlikely to fall with unemployment.
- The Congressional Budget Office predicts that unemployment will fall to 5.7 percent by 2017 but SNAP participation will only fall by 4.5 million people to 43.3 million participants.
- SNAP administrators say the program is working as designed because almost 50 million people are under the federal poverty level and aggressive efforts to get those families who qualify for aid onto the rolls have been successful.
- The unemployment rate peaked at 10 percent in 2009 and began to recede in 2011, while at the same time SNAP enrollment remained steady despite fewer people living in poverty.
- The higher enrollment is due to the 43 states and territories that currently have expanded eligibility policies that allow individuals with some savings or earnings above the poverty threshold to qualify.
- Reversing the standards would cause between 2 million and 3 million people to lose benefits and only amount to $4.5 billion savings over 10 years, which is just a fraction of the total program cost.
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