NYT: As Jobs Vanish and Prices Rise, Food Stamp Use Nears Record

[babylonsister]

As Jobs Vanish and Prices Rise, Food Stamp Use Nears Record

By ERIK ECKHOLM
Published: March 31, 2008


Driven by a painful mix of layoffs and rising food and fuel prices, the number of Americans receiving food stamps is projected to reach 28 million in the coming year, the highest level since the aid program began in the 1960s.

The number of recipients, who must have near-poverty incomes to qualify for benefits averaging $100 a month per family member, has fluctuated over the years along with economic conditions, eligibility rules, enlistment drives and natural disasters like Hurricane Katrina, which led to a spike in the South.

But recent rises in many states appear to be resulting mainly from the economic slowdown, officials and experts say, as well as inflation in prices of basic goods that leave more families feeling pinched. Citing expected growth in unemployment, the Congressional Budget Office this month projected a continued increase in the monthly number of recipients in the next fiscal year, starting Oct. 1 — to 28 million, up from 27.8 million in 2008, and 26.5 million in 2007.

The percentage of Americans receiving food stamps was higher after a recession in the 1990s, but actual numbers are expected to be higher this year.

Federal benefit costs are projected to rise to $36 billion in the 2009 fiscal year from $34 billion this year.

“People sign up for food stamps when they lose their jobs, or their wages go down because their hours are cut,” said Stacy Dean, director of food stamp policy at the Center on Budget and Policy Priorities in Washington, who noted that 14 states saw their rolls reach record numbers by last December.

more...

http://www.nytimes.com/2008/03/31/us/31foodstamps.html?_r=2&hp=&adxnnl=1&adxnnlx=1206964870-NpPTm7tV+dn4X9LMilwO5A&oref=login&oref=slogin

[KharmaTrain]

1. Crime Is Up, Too

The local news reported a sharp increase of shoplifting and petty theft. This area was one of the few left with the "honor system" at gas stations, now they've gone to pre-pay to cut down on the number of drive-offs. The bite is being felt in many ways that don't show up in pure $$$. There's been a rise in DUIs and alcohol-related violence, an increase in divorce rates and also arson. The effects of the booosh economy are felt far deeper and wider than simple numbers...it's truly destroying lives.

There's a bigger problem looming...as many of those who are currently on unemployment exhaust benefits and "vanish" from the roles...except for food stamps and in lines at homeless shelters. And this is putting a lot of strain not on the Federal (who caused most the problems) but on state and local governments.

The states long have had to pay the freight for the boooosh plundering. The tax hike for the rich reduced the amount of taxes collected that led states to go from surplusses to defecits...and now add to that the number of vacant properties now that either are delinquent on paying higher property taxes or have seen their values collapse. There's also the drop in consumer spending and less taxes from the businesses that either close-up or outsource.

As expected, this regime will fiddle while Rome burns...as the gap between rich and poor/middle class widens even further and the states are left holding the bag.

Cheers...

[babylonsister]

2. I've heard pawn shops are gaining in popularity, too.

Sigh. I'm not in that boat yet, but I can just imagine. And if I had 4 kids to feed? That, I can't imagine.

[KharmaTrain]

3. Here's Hoping You Don't Near The Pier...

My parents were depression kids...and I'm grateful for a lot of the fiscal lessons they taught me. If you can't afford it, you can't have it and to conserve and save where possible because "you never know...". I got married and had kids during the 80's...the glory days of VoodooRaygunomics...constantly fighting to make the month last the last check...it rarely happened. This country has been lucky in recent years that the economic recession (and I cite it starting back in 2000 when oil prices were manipulated to hurt Al Gore...and profit Enron) had been a quiet one...people suffered separately and silently.

The ripples of the rises in oil prices, the drop in incomes and assets and rising unemployment and under-employment will make things worse before they get better...but as I was told by an older, and wiser, DU'er...these things are cyclical and that things will turn around...and in many ways, I'd rather see it now and stain the repugnicans (credit where credit is due) rather than this mess happening during a Democratic administration and the GOOPers able to lie about them being "fiscally responsible". Hopefully that lie has really been exploded...we'll see in November.

:hi:

[Hidden Stillness]

4. This Whole Recession Happened Because Everything is Now Run by Oblivious Rich People

A large part of this whole problem came about when the corporate media completely consolidated by deregulated-merger, so that it was now owned by only the largest, richest global operations, staffed with only the rich who would advance the propaganda, and censoring any kind of corrective message from the non-rich/non-corporate world. They then made themselves so cut off from the society around them, that they were oblivious to the signs, the problems, the increase of many of these crises. Just a few months before the campaign started--and the candidates had to actually go out there and meet people, not just huddle with their lobbyists and consultants--they were still talking about "National security" as the "#1" issue, "sending their kids to college" as the big cost-threat, "reaching across the aisle" as their self-excuse code language for "capitulate to Republicans every time"--and then the people got a chance to finally talk to them. We can't even afford gas, food, bills, the dentist, mortgages, rent, prescriptions--forget "college," there is no future at all! The media still claims that people are not spending money because they are "unsure," do not have "confidence," or other richie-speak. Are they unaware that we don't have it?? Their every "description" shows their wealthy insulation from all of these problems, so that they have no idea what level of desperation and need these things are even on.

Also, the official poverty level has been set artificially low for 30 years or more, to make themselves look good (to each other, apparently)--many millions just above it are also destitute. Food stamps have been so slashed over the deacades, that I think they pay on average some $28 a month, something like that. The pseudo-politicians (corporate enablers) have been so fixated on "winners" (investment banks, etc.) for so long, ("clearing away" protective laws, which they call "impediments"), that they actually have no accurate thoughts about any of us anymore. This whole disaster happened because these assholes no longer understood, and could not even explain to themselves anymore, why complete deregulation and lawlessness is not a good thing. They were so enmeshed in their own corporate propaganda that they were surprised that this even happened! They brought this whole thing on by their own step-by-step dismantling of every New Deal, and etc., law and regulation that existed; they caused this.

[El Pinko]

5. When I lived in San Francisco and couldn't make ends meet, I applied...

...I was making about $2K/mo, my rent was $1100 and was being eaten alive by credit card debt. I thought I would qualify, but it turned out that I was way too "rich" even though I was supporting a wife and 2 kids.


It's hard to imagine what it must be like to try to live on that kind of income - I make a pittance and yet these people make much less.