Saturday, December 21, 2013

Food-Stamp Myths

Click here to read this great post by Michael Tanner of Cato. Excerpts:
"The massive increase in food-stamp spending was caused by the recession, so cuts are insensitive to economic reality. The food-stamp program certainly has exploded in the weak economic years since 2009, from 33.5 million beneficiaries at a cost of $53.6 billion a year to 47.7 million beneficiaries at a cost of $82.9 billion. Much of that increase was indeed due to the recession and increased unemployment. But the growth in food stamps actually started long before the recession began — under George W. Bush, in fact. President Bush nearly doubled both the program’s cost and the number of recipients.

In addition, studies show that the increase in food stamps was much greater during this recession than in previous ones, suggesting that at least some of the increase was due to policy decisions rather than economic conditions.

The CBO projects that long after the recovery solidifies and unemployment declines, both costs and participation will remain at much higher levels.

Food stamps keep Americans from going hungry. It’s hard to imagine that the government could spend almost $83 billion per year without having some impact on hunger in America. Yet there is little real evidence that it does. The Government Accountability Office (GAO) found that “the literature is inconclusive regarding whether SNAP alleviates hunger and malnutrition for low-income households.” Similarly, a study for the U.S. Department of Agriculture found that for nearly all vitamins, minerals, and macronutrients assessed, the dietary intake among SNAP participants was comparable to that of nonparticipants in similar situations.

Food stamps are just a temporary safety net, not a form of dependency. No one wants to deny children, the elderly, or the disabled some temporary assistance to help them get through hard times. But the evidence suggests that for many recipients food stamps are becoming not a temporary safety net but a way of life.

Nearly 56 percent of SNAP households are on the program for five years or longer. And roughly 4.5 million recipients are able-bodied adults. In 2011, the most recent year for which data is available, only 27.7 percent of nonelderly adult participants were employed, while just another 28 percent reported that they were looking for work. Importantly, one of the largest “cuts” that Republicans have proposed is simply to restore the program’s work requirements.

The Republican proposals would slash benefits. The proposed Republican cuts would reduce food-stamp spending over the next ten years relative to the projected budget by just 5 percent. Even after the cuts were fully phased in, spending would remain higher than it was in 2010. Slashing this is not.

But more importantly, most proposed cuts don’t actually reduce benefits. For example, as noted above, one Republican proposal would simply restore work requirements. Some worry that recipients might not be able to find jobs. Fair enough. But recipients could also satisfy those requirements through job training or job-search programs or by participating in volunteer and charitable activities. That doesn’t seem all that onerous.

A second Republican proposal would eliminate so-called “categorical eligibility,” which makes people eligible for food stamps if they participate in other welfare programs. Republicans would target food stamps to the truly needy by restoring the programs income and asset tests. How cruel."

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