Skip to comments.The (Big) Business of Food Stamps: “Here’s Where the Profits Come in”
Posted on 06/25/2012 10:04:42 AM PDT by Hojczyk
In 2011, a record 46 million people - or 1 in 7 Americans -- participated in the Supplemental Nutrition Assistance Program (SNAP), better known as Food Stamps.
The increased use of Food Stamps is a huge social and political issue for America, and it's also big business. In 2011, the U.S. government spent $72 billion on Food Stamps.
Among the beneficiaries, food producers such as Cargill, PepsiCo. (PEP), Coca-Cola (KO) and Kraft (KFT), as well as retailers like Wal-Mart. Of course, Wall Street gets a cut too, led by JPMorgan Chase (JPM), which administers the SNAP benefits in 24 states.
Currently, there are few restrictions on what can be purchased with Food Stamps, other than alcohol and prepared foods.
"Here's where the profits come in," Nestle says. "A vast percentage of Food Stamps' money goes into the pockets of soda companies and snack food companies...and also the stores that sell these foods."
Wal-Mart "gets a large fraction of Food Stamp dollars," which contributes 25% to 40% of revenue at select stores, according to Nestle. "These companies, therefore, have a vested interest in making sure Food Stamps are allowed for any purchase at all."
"The point here is that banks that administer SNAP have a vested interest in keeping SNAP enrollments high and makers of junk foods have a vested interest in making sure that there are no restrictions on use of benefits," she writes.
As you'll see in the accompanying video, one other thing stands out when discussing these issues: There is no public data available on how Food Stamp funds are being spent.
Whatever you think of the program or whether there should restrictions on Food Stamps, we have a right to know how (and where) these taxpayer funds are being spent.
(Excerpt) Read more at finance.yahoo.com ...
Here in Indiana one of the tv stations got a file of all the ATM withdrawals made with Indiana Supplemental Assistance. That's basically "welfare" over and above EBT.
It was interesting: NYC, Vegas, Calif, Puerto Rico, casinos all over the country, Disney Orlando, Nevada brothels, Hawaii. Glad these "victims" are able to take nice vacations.
SNAP is different than TANF. TANF has cash value at atms. Same card, two separate accounts.
Yeah I know, but it doesn’t change my outrage!
I’ve seen people here in Florida buying soda, chips, candy bars and ice cream with food stamps. I didn’t realize that was possible...assumed they were for actual food.
Wouldn’t it be great to interview MooseChelle Obama on tv and ask her....
“Shouldn’t food stamp recipients be restricted to the purchase of healthy foods?”
The government decides what can be purchased with food stamps - NOT Walmart.
I could buy the premise of this piece IF the government restricted the purchase of King Crab or Kobe steak or potato chips - and Walmart objected. But that’s not the case. They don’t restrict on food items.
This article is based on the premise that without food stamps, people wouldn’t eat, and just starve.
We can each have a different reaction to that, but to me it seems that once people began to face real starvation (no food stamp assistance) they would find a way to come up with the money to buy food.
Yea, I know, we’ would have that somewhat uncomfortable period of rioting, but in time, nature would return to the same course it’s had for tens’ of thousands of years; if you want to eat you’ve got to work.
Yeah. No joke..
That probably doesn't include administrative costs which could be double or triple that after government hireling benefits are included.
YUM and other fast food corporations admit they need the SNAP $ to stay profitable. I have a friend who works as a consultant for YUM brands and she confirms this admission is made within the meetings she attends.
So, another case of a government telling private entities that they can exchange their independence for cash subsidies.
No wonder the fast food industry toes the line on posting nutritional content, removing toy incentives, offering healthy alternatives or that the subsidized corporations sign on to opening stores in neighborhoods rife with shrinkage, for additional inducements, of course. The SNAP recipients also get Medicaid, which is why the huge push against obesity, which is abetted by the open-ended approach to what can be purchased with the subsidy. All of this obesity is further compounded by the year-round, week-long free meal programs with take home options mandated by the government. Likely this is also why they want to stop all private food programs, control what leftover food is donated, regulate everything in our lives. The problem is not the working tax payer, the entire problem is caused by government and the victims/recipients are the same people.
One never-ending daisy chain.
If I were president, I would make food stamp money available for use ONLY in government stores, that sold only such things as beans, rice, meat, milk, cheese, fruits, vegetable, etc.
The advantage for me, under the government store plan, would be that I would no longer have to stand behind the obese woman with the out of control kids with her cart full of potato chips and soda, then driving away in her SUV. Always wondering to myself..who the hell was drunk enough to do that (and more than once)
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