Economy

Five Reasons Food Stamps Work Just Fine

Last week, House Republicans passed a bill that would cut the food stamp program by about $40 million over the next ten years. They’re drawing on headline numbers—the program serves about 47 million people each year and has the biggest price tag of any program in the farm bill, $80 billion for the next five years —to drum up support. (The aid, technically known as the Supplemental Nutrition Assistance Program, or SNAP, is still known as food stamps to nearly everyone who gets it.) There’s very little chance that the bill will be enacted, given the more moderate makeup of the Senate, although it’s likely that some cuts are will end up on the president’s desk. (The Senate is cutting $4.4 billion from the program.) Still, food stamps are one of the most robust federal entitlements for the poor we have left, so it’s always going to be a target for cuts. It’s worth looking beyond those numbers in the news to see how the program is performing—and why it’s still essential.

The Day after Shutdown

AP Photo/Carolyn Kaster

So it’s October … or maybe it’s six or ten weeks later, after a short-term continuing resolution has come and gone. The clock strikes midnight, Congress has failed to fund the government, and the next day it shuts down.

What happens next?

Playing Hunger Games with Food Stamps

When the House voted yesterday to cut $40 billion from the food-stamp program, they doubled the cuts the House had previously considered.

The Conservative Plan for Medicaid Expansion

AP Photo/Osamu Honda

A number of policymakers on both sides of the aisle cheered when, in April, the Arkansas Legislature passed a law both expanding Medicaid and transforming it into a service available in a marketplace of insurance options, a move known as the “private option.” Similar cheers erupted in June when Iowa Governor Terry Branstad approved a similar measure. The legislation marked a major accomplishment—not because the policies are necessarily improvements over traditional Medicaid but because they establish politically palatable paths for conservatives who want to increase access to health care. In Pennsylvania, GOP Governor Tom Corbett—who was against Medicaid expansion and this week announced he is is tepidly for it—has pointed to the these new plans as a model he might consider (among other, more controversial changes.) The private option may be a way to make comprehensive health-care coverage viable in other Republican states—but that depends largely on what happens in Arkansas and Iowa over the next several months.

The Fed Stays the Course

AP Photo/Susan Walsh

Financial markets rallied when the Federal Reserve defied the rumor-mongers and resolved to continue its program of keeping interest rates very low until the unemployment rate improves. There was only one dissenting vote on the Fed’s policy-setting open market committee.

What’s going on here? Ever since the run-up to the collapse of 2008, what’s good for Wall Street hasn’t exactly been good for the rest of the economy. Are these ultra-low interest rates just pumping up more financial bubbles, as critics fear? Or does a still weak economy need this form of stimulus?

Think of it this way. There are risks to continuing a policy of very easy money, but premature tightening would be even worse.

The Obamacare Is Falling! The Obamacare Is Falling!

AP Photo/Charles Dharapak

As we approach the full implementation of the Affordable Care Act at the end of the year, confusion still reigns. Most Americans don't understand what the ACA does or how it works, which is perhaps understandable. It is, after all, an exceedingly complex law, and from even before it passed there was an aggressive and well-funded campaign of misinformation meant to confuse and deceive Americans about it, a campaign that continues to this day and shows no sign of abating. To undo uncertainty and banish befuddlement, we offer answers to a few questions you might have about Obamacare.

Obama Just Changed the Most Racist Law in the Country

(flickr/uncgspecia)

You may have missed it, but yesterday President Obama dramatically altered one of the most racially damaging laws in America when the Department of Labor announced that it would extend minimum wage and overtime protections to home care workers.

Shutdown Report: How to Play Chicken and Lose

AP Images/J. Scott Applewhite

Republicans are likely incur serious political damage in their effort to hold hostage continued funding of the government in exchange for deep spending cuts. This routine has become an annual ritual, and in the past President Obama has been the first one to cave. The 2011 Budget Control Act, which includes the automatic sequester, is one bitter fruit of the president’s past failure to hang tough in the face of Republican extremist demands.

We Shall Overwhelm

AP Images/J. Scott Applewhite

Four years ago, the modern Tea Party seemed to emerge from nowhere, leaving journalists bewildered and the public with few reference points to understand seemingly spontaneous rallies by middle-class people seeking lower tax rates. A search for the phrase “tea party” in connection with “politics” in major newspapers yielded fewer than 100 mentions in 2008—and when the words did appear linked together, they suggested studied formality and decorum. The next year, they appeared more than 1,500 times, often connected to “protest demonstration.”

Time to Give America a Raise

AP Photo/Louie Balukoff

It’s been a good week for the nation’s numerous poverty-wage workers. They’ve been way overdue for a good week.

On Tuesday, the Labor Department issued a much anticipated and delayed extension of the federal minimum wage and overtime regulations to the nation’s 2 million homecare workers. Last Thursday, the California legislature passed (and Governor Jerry Brown pledged to sign) a bill that raised the mega-state’s minimum wage from $8-an-hour to $10.

A Long Way from the End of Men

AP Photo/Mark Lennihan

Though we’ve technically been recovering from the Great Recession since late 2009, the poverty rate in the United States has been stuck at about 15 percent since 2010. New data released yesterday from the Census Bureau showed that last year wasn’t much better. Poverty rates are stuck at the highest levels in a generation. Median incomes have fallen in the last ten years by more than 11 percent. Coupled with recent studies showing that most of the recovery’s gains have gone to the top 1 percent of income earners, the data on poverty confirms what many already knew: Inequality is growing, and the middle class is dying. That’s especially true when you examine the status of women and racial minorities.

Did Summers Spoil It for Yellen?

AP Images/Mark Lennihan

Now that Larry Summers is out of contention for Chairman of the Federal Reserve, the nomination of Janet Yellen should be assured. Unfortunately, Yellen still is far from a safe bet.

Could You Live on $11,940 a Year?

A couple of months ago, Fox News host Neil Cavuto went on a rant against fast-food workers striking for higher wages, explaining that when he was but a wee pup of 16, he went to work at an Arthur Treacher's restaurant for a mere $2 an hour, setting him on the road to becoming the vigorous and well-remunerated cheerleader for capitalism he is today. For all his economic acumen, Cavuto seemed to forget that there's a thing called "inflation," and the two bucks he earned in 1974 would today be worth $9.47. That's less than the striking fast-food workers are asking for (they want $15 an hour), but significantly more than the $7.25 today's minimum-wage workers make. Not to mention the fact that so many of them are not teenagers but adults trying to survive and support families. (According to the Economic Policy Institute, 88 percent of those who would benefit from an increase in the minimum wage are over the age of 20; that and much more data on the topic can be found here.)

Yesterday, the California legislature passed a bill raising the state's minimum wage to $10 an hour, which would make it the highest in the nation. Governor Jerry Brown intends to sign it. Of course, business interests howled that paying people such a handsome wage would destroy the state's economy, which is what they always say whenever the minimum wage is raised, despite the fact that it never seems to happen. The California increase is going to be phased in over two and a half years; the minimum in the state will rise from its current $8 to $9 next summer, then to $10 at the beginning of 2016. Since this issue seems to be coming back to the fore as it does periodically—the mayor of Washington, DC just vetoed a living wage bill that was aimed primarily at Walmart—I thought it might be worthwhile to compare the value of the minimum wage today to what it has been in the past:

Larry Summers and the Economists’ “Greed Exception”

AP Images/J. Scott Applewhite

It is said that the late economist Milton Friedman was once asked how much money it would take for him to change his position that humans are primarily motivated by greed, which was at the core of Friedman’s free-market fundamentalism. Friedman wisely dodged the question. He understood that if he said he could not be bought, it would undercut his economic theory. In order to avoid undercutting his theory, he would have had to admit that he, like everyone else, had his price.

Pages