Gov’t Failures and Unemployment Fuel Soaring Food Stamp Use/Abuse

More than 44 million Americans are on food stamps today which is up from 26 million in 2007 according to editorial by James Bovard in the Wall Street Journal titled “The Food-Stamp Crime Wave” (06-23-11). That’s an increase of nearly 60%–18 million new people–a trend that is disturbing.

Bovard suggests that the reason for the  enormous number of Americans dependent on food stamps is rooted in several factors: 1) AmericaCorps and other nonprofit aggressively encouraging people to apply for assistance; 2) USDA’s recent “paperwork reduction” reforms (35 states abolishing asset-tests) have made it easy to enroll; and, 3) the Obama administration attitude has encouraged people to use the program while being lackadaisical in cracking down on offenders.  In the last four years the cost to support the program has “more than doubled to $77 billion from $33 billion.”

In contrast, fraud accounts for $2 billion a year according to Washington Examiner reporter Leah Fabel in her article titled, ”Food Stamp Program Doubles in Region, Abuse Soars” (6-18-11).  Fabel goes on to explain that

“Officials say the level of fraud may be higher than perceived because states don’t have the resources to weed out all offenders. USDA Inspector General Phyllis Fong told Congress in June that state fraud reports ‘contained unreliable and unverified data.’”

Bovard’s article noted a number of abuses occurring in recent years such as

• Food-stamp trafficking (the selling of food stamps for cash) has been seen occurring on Facebook, Craigslist or on the street  for cash (freeing recipients to buy items other than food…even drugs).
• Income/asset loopholes allow program recipients to win large lottery amounts while staying on food-stamp assistance. Michigan resident Leroy Fick, age 59, applied this loophole when winning $2 million in 2011. He took the win as a “lump sum payment” rather than a monthly payout.  The Michigan Department of Human Services ruled he could remain on food stamps because Fick’s lump sum is considered an asset rather than a form of income.

• Food-stamp application failures allowed Iowa inmates in 2009  to use their non-jail mailing addresses to collect food stamps.  These individuals were not prosecuted for fraud because Iowa’s food stamp application never asked or identified whether an individual was in the process of being incarcerated.
• False claims of losing food-stamp cards and the federal protocols to provide a quick replacement have opened the door for abuse.
• Using food stamps to acquire items other than food.  Some recipients will go to markets to secure anything other than nutritious food which may include cigarettes, alcohol, books, cards, etc.

Americans on assistance and the rise of criminal abuses in the use of food stamps has also been spurred on by high unemployment,  uncontrolled deficit spending and debt, squandered stimulus dollars, weak housing sales, mortgage chaos, and rising energy prices.  Of course, many Americans are open to having a basic safety net for individuals and families in severe need of food and nutrition.  Yet, the goal of such a program is to help a person achieve independence–the capacity to acquire basic needs and services on their own–and not to perpetuate dependence on government freebies.

The  best thing the Obama administration could do is to reverse its spending binge and wealth distribution policies in favor of economic thrift and wealth creation to stem and reverse the tidal forces swelling the ranks of those on food stamps.  Americans are hungry for decent jobs.  People are nourished best through economic opportunity.  Long-term exposure to government freebies warps perspective on how wealth is actually created and erodes personal responsibility…even self-esteem. In contrast, opportunities that create income streams and opportunities to employ one’s passion and skill tend to be emotionally satisfying–literally, empowering the individual to be a source of stability to his/her family while propelling the nation to a better standard of living.

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