Since the financial crisis hit in 2008, many individuals had to rely on food stamps to feed the family. In fact, recent data from the U.S. Department of Agriculture’s Supplementary Nutrition Assistance Program (SNAP) (formerly known as the Food Stamp Program) estimates that it helped put food on the table for 31 million people per month in fiscal year 2009.
With the rate of food stamp usage having increased dramatically from 2007 to 2009 (32 percent according to stats from New York Times), it makes you wonder what it means to the economy. Can our increased use of food stamps be compared to reliance on government assistance during other recessions or the Great Depression? Even more, how does one know if they should be on food stamps?
The Historical Need for Federal Food Assistance
The idea of distributing food to the unemployed got its start in the 1930s after the Federal government saw the need to get involved with food and monetary assistance, which until then was only handled by local communities and charities.
According to published data, in mid-1932, Congress authorized the Red Cross to distribute government wheat to the unemployed in the eve of the Great Depression. During its height in 1933, when nearly one in four people were without work, the government began distributing free pork as well. But it wasn’t until May 1939 that the USDA initiated an experimental Food Stamp Program.
This program was discontinued in 1943 when the economy started turning around, then re-introduced in 1964 Food Stamp Act and reconfigured with the 1970 Food Stamp Act.
Since the Food Stamp Program got its start after the Great Depression, some wondered if the current recession and its need for food stamps equates to the soup lines of the early 1930s?
This issue has been debated by many who approached numbers from both time periods. In a report titled City Life During the Great Depression, it was noted that 82 bread lines in New York City served 85,000 meals daily in January 1931 alone, which equals roughly 2.64 million receiving food in one month.
According the City Room blog, 1.6 million New York City residents received food stamps in August 2009. Considering that New York City had an estimated 8.3 million residents as of 2008, compared to 6.9 million residents in 1930, we can see that the percentage of those receiving food assistance for one month during the Depression may have been roughly 38 percent, while it was likely closer to 19 percent for the current recession.
Of course, the numbers aren’t perfect but they give an idea of where we stand from this recession to the Depression. Does this mean that food stamps aren’t as needed now? Absolutely not!
What Food Stamps Mean to Our Economy
In a time where economic challenges are severe, as with the current recession, food stamps have become more important to families than ever. Marion Nestle wrote in her article, Food Stamps: The Economists of Eating Well, that the increase in food stamp usage is directly correlated with the increase in job losses.
However, what’s interesting is that while an increase in the use of food stamps is automatically equated to difficult economic times, House Speaker Nancy Pelosi noted in January 2009 that both food stamps and unemployment insurance have the most stimulative effect on the economy. Most specifically, she says, food stamps come first in having the most stimulative effect.
On the other hand, Alan Viard, a scholar at the American Enterprise Institute for Public Policy Research who responded to Pelosi’s statement about food stamps explained that economic stimulus could never come largely from food stamps because the program simply isn’t large enough.
Or is it that not enough people participate?
Nestle noted that only two-thirds of people eligible for the program actually apply for and receive benefits. One reason this may be the case, as written by Christopher Greenslate, co-author of On a Dollar a Day, is due to the application process being complex, intrusive and humiliating.
In his article, Benefits are Meager and Underused, he wrote, “The average applicant has to make five trips to a center, have every adult in the home fingerprinted, and is subject to home searches by the district attorney’s office.”
What’s interesting about food stamp usage is that it undoubtedly represents a time of financial difficulty when a family needs help from a third party to eat. However, Pelosi thinks of the program as economic stimulus as opposed to temporary assistance for the unemployed.
This could leave some wondering whether the focus on stimulating the economy will be geared more toward job creation or more food stamps and unemployment checks.
Should You Be Using Food Stamps?
So you may be wondering if you’re supposed to be using food stamps. With more people eligible than ever, there’s a chance that you just may qualify. Here are some things you should know about eligibility requirements and the stamps themselves.
First, it’s good to know that food stamps are not actually pieces of paper anymore. Now, the distributions are placed on a card every month and this card is swiped in the credit card machine when used.
Just to give you a rough estimate of income requirements to receive food stamps, for the dates Oct. 1, 2009 to Sept. 30, 2010, your gross monthly income cannot be more than $1,174 for an individual and $2,389 for a family of four (here is a full list of income limits). If you meet the income limits for these family sizes, you would receive the max of $200 per month as an individual or $668 as a family of four.
Only you know whether you qualify based on your income. If you do qualify, it’s good to know that your benefits can buy you food, seeds and food plants; however, you cannot receive alcohol, tobacco, pet food, supplements, paper goods or hot prepared foods.
Food Stamps Paint a Bleak Picture of the Economy
We’ve heard plenty from government officials saying that the economy is looking up – at least on paper. However, even though the unemployment rate has retracted some (from 10.2 percent to 10 percent in recent months), the increased need for food stamps makes one wonder if improvement is really on the horizon for 49 million current recipients just trying eat three full meals every day.
It’s hard to say at this point.
What do you think? Have you used food stamps?
I’m glad that there is a food stamps program – because in tough times, many American families need a bit of help. Especially when the US pours out billions of dollars a year to help out other countries.
Fantastic article about the origins of food stamps. I would guess that more people are turning to food stamps because areas like food bans have been so hard hit they can’t really provide for the needy anymore.