I’ve written a couple of times about the Food Stamp program, citing ridiculous examples of waste, fraud, and abuse. These include:
- Using food stamps to buy luxury coffee at Starbucks.
- Buying steaks and lobster with food stamps.
- The Obama Administration rewarding states that sign up more food stamp recipients.
- Proposals to make it easier to use food stamps at fast food restaurants.
- College kids scamming the program for handouts.
- New York City giving food stamps to newly released prisoners and running foreign-language ads encouraging more people to sign up for the program.
As a taxpayer, I get upset about these examples. But as a public policy economist, I’m much more worried about the fiscal and economic impact of the program.
As a human being, though, my primary concern is the way redistribution saps the spirit of self reliance and traps people into lives of dependency. That’s the very first point I make in this debate on CNBC.
By the way, my opponent in the debate is Jared Bernstein, who is infamous for being the co-author of the Obama Administration claim that enacting the s0-called stimulus would keep the unemployment rate from rising above 8 percent.
I’ve had lots of fun mocking that claim. Every couple of months I post Jared’s predictions and compare them to the real-world results.
But it’s important to understand that I’m not blaming him for making bad predictions. After all, economists are lousy forecasters. I blame him for peddling the silly Keynesian theory that bigger government boosts economic performance.
4-4-Two PodcastEp 28The Internet Said 44Two (feat. Kautuk Srivastava)
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[…] With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show. […]
[…] With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show. […]
[…] With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show. […]
[…] With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show. […]
Funny story…My son works for a pizza place that accepts ebt cards. The employees get really frustrated because sometimes the cards don’t work and they have had customers break down and cry because they can’t buy their $12 pizza with the ebt card. They cry and say they can’t feed their kids finally, the manager just gives them a free one. grr.
[…] With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show. […]
[…] With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show. […]
In order to find the answer to this question you will have to find out which more people are comfortable using when they shop.
An acquiring bank is the bank that holds your credit card merchant
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an enterprise and a bank or a financial institution.
[…] If we want to maintain American exceptionalism (both in theory and reality), it would be a very good idea to figure out how to avoid having more people trapped in lives of government dependency. […]
[…] With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show. […]
[…] With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show. […]
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[…] If we want to maintain American exceptionalism (both in theory and reality), it would be a very good idea to figure out how to avoid having more people trapped in lives of government dependency. […]
[…] In other words, if we want to maintain American exceptionalism, it would be a very good idea to figure out how to avoid trapping more and more people in lives of government dependency. […]
[…] If we want to maintain American exceptionalism (both in theory and reality), it would be a very good idea to figure out how to avoid having more people trapped in lives of government dependency. […]
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[…] The icing on the cake is that no longer would the federal government be running ads to lure people into dependency. […]
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John Maynard Keynes’ economic ideas were GAY in more ways than one!
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[…] not a big fan of welfare programs, in part because I sympathize with taxpayers (check out these outrageous examples of waste) but mostly because redistribution programs subsidize poverty and trap people in lives of […]
[…] not a big fan of welfare programs, in part because I sympathize with taxpayers (check out these outrageous examples of waste) but mostly because redistribution programs subsidize poverty and trap people in lives of […]
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On it’s face I really don’t care about what someone chooses to spend their food stamp money on. If we give them money to eat, as long as they spend on food, I’m not going to question it. People on food stamps will likely make choices that I would not, which may have something to do with how they ended up on food stamps. I don’t think someone receiving assistance should be immune from treating themselves. The desire to control their spending is a form of paternalism that I simply cannot get behind. Pretty sure it’s also the reason that Milton Friedman always advocated using cash as the means for a safety net. People are best left to make their own choices as how money is best spent.
Now obviously if they are abusing the program and in fact have fudged the numbers or used some nefarious means to receive the money, that’s a different issue altogether, but all too often we trot out these examples for their shock value and I frankly find it insulting.
As someone who owns a business in an industry stomped flat by stupid government policies and who is now receiving food benefits, I see two big areas for reform: First, assets such as retirement funds should be included in tests for eligibility. The government could waive the penalties on the use of such funds instead. Second, the maximum benefit amount could be lower. Although the average benefit is somewhere around $135 per month for a family of four, the maximum is $668–more money than is needed if only basic foods are purchased (at least in the Northwest).
[…] it let me know and I’ll post it.It brought to mind Dan Mitchell’s appearance today with Neil Cavuto. Again, I wasn’t able to find the video, but Mitchell made the case that President […]
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Katheirne, absolutely brilliant!
thanks
I see that all the time Larry. I live in a small town and see people I don’t even know at the food store with carts full of stuff I out of my budget, paying with their EBT card. I see them in the parking lot getting into late model vehicles with out of county tags, must be too ashamed to shop in their own communities.
Several years ago, I applied at the Health and Human Services in Ohio for food stamps. All I wanted was $100.00 a month to help my family over a rough patch. Well, I was denied because I owned 2 vehicles – an 11 year old Chevy C-10 and a six year old VW Rabbit. And to boot I had $700 in the bank which I told the case worker was for medical and emergency expenses. However, I was also told, if I sold one vehicle and spent all but $100 of my savings, I would qualify for much more than $100.00 a month food stamps, my daughter would get a clothing allowance, free school lunches, free medical, dental, utility assistance etc etc etc. The whole cornucopia would be opened to me if I would just submit to their care.
I said not just no but H-E-double-hockey-sticks NO!. We as a family toughed that period out, but the kicker came about a year after that. My wife was ill and she asked me to go to Giant Eagle for her. Shopping list and coupons in hand, I dutifully got everything on the list. During my shopping trip, I kept bumping into a “family” of man, woman, and three “adorable” children. They had two shopping carts full of stuff I could only dream of buying. At the checkout the woman paid for the two shopping carts with – you guessed it – food stamps. The “husband” NOT! Was behind her and bought two cartons of cigarettes paid cash. In the parking lot, they loaded their booty into a Ford F-250 Extended Cab 4 Wheel Drive (NEW) with a really nice Harley-Davidson strapped down in the bed of the truck. I struck up a conversation with the man about his Harley and discovered that he worked for Consol Coal Company and lived with this woman who has three kids. He got free rent, free food, free sex, and we the taxpayers paid. What a country!
Reblogged this on The Conservative New Ager.
Thanks, Katheirne.
The same old story: Politicians seeking to make themselves artificially necessary. I want to vomit.
In Latin America it is really terrible, there is actually hunger here. And politicians established nauseating european style Value Added Taxes and created tens millions of poor and then never gave back all they took away with VAT. Argentina: 21% VAT rate. Uruguay 22% VAT rate. Chile 19% VAT rate. Brazil: 47% and more VAT rate when you add federal and state VATs- Take a virtual trip through Sao Paulo and Rio de Janeiro neigborhoods with google earth street view. You will see there REAL poverty caused by brazilian nauseating 47% VAT.
Andrew, Thanks for that. It was read out loud to my family. The scary part is I really don’t think we are all that far from this.
Future News,
President Michelle Obama announced today a breakthrough integration of the new MyLife Visa/Mastercard with the AutoVote system.
MyLife is the efficient integration of the old food stamp progam with the payment intermediaries Visa and Mastercard. Visa/Mastercard is the GSE (Government Sponsored Enterprise) which has succeeded the older banking association of the same name, under a novel interpretation of Dodd-Frank financial regulations.
MyLife has the same appearance as any other Visa/Mastercard, to remove any stigma for accepting government funds for food. Mme. Pres. Obama stated: “Individuals should not feel any embarassment from accepting food aid, as 2/3rds of corporate America now accept some type of assistance from the government.”
There has been mild criticism that MyLife encourages food purchases from “luxury” categories, and that those categories are subject to intense lobbying by the food and beverage industries. Mme. Pres. Obama: “People on MyLife may be poor, but they are not second class, and deserve to buy good food.”
Today’s announcement ties MyLife into the national AutoVote initiative. MyLife participants need only insert their card into the electronic voting machine to create default ballot choices. Mme. Pres. Obama: “MyLife participants have the natural incentive to continue a program and an administration which provides them a vital service. This provides them with an easy way to vote for their natural interests, should they wish to. It is only a “nudge” in the right direction.”
You point was good, but not forcefully enough made. Why is this being done at the federal level at all? It is a state/local issue. You let the democrat stake out the high ground, “But we are helping the people.”
Please see Davy Crocket and welfare, “It’s not yours to give.”
http://www.101bananas.com/library2/crockett.html
Thanks for sharing! I enjoyed the video. Food stamps certainly aren’t are ridiculous as 99 weeks of unemployment benefits, but I do agree with you.
http://ryankantor.com/2012/01/21/newt-gingrich-earns-first-gop-primary-victory/