The Effect of Supplemental Nutrition Assistance Program on Food Spending
Among Low-Income Households
Introduction
The Supplemental Nutrition Assistance Program (SNAP), previously called the Food Stamp Program, is designed to help improve the nutrition status of low income households in the United States. The SNAP program expanded dramatically during the last years: SNAP program budget went from $37.6 billion in 2008, to $79.86 billion in 2013; and the number of the program participants increased from 28.2 to 47.64 million (USDA, 2014). These figures demonstrate average annual increases of 11% in the number of participants and 17% in the program budget during the period, well above the corresponding average annual rates of increase of 6% and 10% for the previous six year period (2002-2008).
The effectiveness of the SNAP program at increasing recipients’ food expenditures is an issue of considerable policy interest and has received substantial attention in the economics literature. However, beyond food expenditures, there is little research studying the effects of SNAP participation on nonfood spending. The emphasis on estimation of the effect of SNAP participation on food expenditures only has been justified by SNAP’s intent of improving households’ nutritional needs; however, the program may also affect expenditures on nonfood goods through the reallocation of funds. Estimates of SNAP benefits effects on non-food spending (e.g., marginal propensity to consume) are important in the evaluation of the economy-wide impacts of cuts or increases in the program (see e.g., Kuhn et al., 1996). Hence, this study examines the impact of the SNAP program on the allocation of food and nonfood spending expenditures across six subgroups: food, ...
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...; Stewart and Yen, 2004).
Another variable considered in the study are the general economic condition of the country. Two significant economy recession events are considered over the period of study. The first event occurs between year 2000 and 2001 and the second event happens from December 2007 to January 2010 (Kuma and Kaufman, 2011). Therefore, the dummy variable for the period of 2000-2001 and 2008-2009 are used to capture the economy recession.
We restricted our sample to subsample of the data with a higher probability of being eligible for participation in the SNAP program. Only households with gross income below 130% of the poverty line were considered for the analyses (Meyerhoefer and Pylypchuk, 2008). The calculation of the poverty line was conducted using the 1998-2009 poverty guidelines issued by the U.S. Department of Health & Human Services (HHS).
Poverty in America is a very complex issue that can be looked at from many directions. There are a plethora of statistics and theories about poverty in America that can be confusing and at times contradicting. It is important to objectively view statistics to gain a better understanding of poverty and to wade through the stereotypes and the haze of cultural views that can misrepresent the situation.The official poverty line in America begins with a person making at or below $12,060. To calculate the poverty line for a family, an additional $4,180 is added to the base of $12,060 for each additional member(“Federal Poverty Level Guidelines”). According to the last U.S. census, over 45 million or 14.5% of Americans are at or below the poverty line(Worstall). At this level, the U.S. poverty level has not changed much from the 1970s when the government began a “War on Poverty.” However,
With more and more people becoming unemployed and applying for the Supplemental Nutrition Assistance Program (SNAP), it is imperative that we understand the benefits as well as problems this causes. Even while researching this topic and talking to some of my family and friends about it, it surprised me the amount of those who do not understand food stamps. Coming from the SNAP website, “Food stamps offer nutritional assistance to millions of eligible low-income individuals and families and provides economic benefits to communities” (United States). This program helps millions of people per year and gives upwards of $75 billion and rising. With the prices of food increasing due to inflation, beneficiaries are receiving around $400 at most per month. Using the Electronic benefit transfer systems (EBT), beneficiaries can buy goods from a grocery store using a credit-card like transaction, which takes the money off of their card. The benefits are received monthly on a specific date and vary in amounts from person to person. One family may receive $300 per month because they have three kids and need the extra money, while another may receive $100 or less depending on financial status. The application process includes completing and filing an application form, being interviewed, and verifying facts crucial to determining eligibility. In the past, these applications did not require a drug screening to get benefits, but more and more states are adopting this. There are many drawbacks to SNAP as well such as taking money from working people’s paychecks every week and people abusing the system. Talking about a very opinionated subject, we must remove bias and answer whether or not the Food Stamp system should be limited.
People should be able to purchase junk food with food stamps. Others might assume that they have no money so why waste it on junk food? Food stamps help numerous people if they struggle with food at home, or don’t earn enough salary. Moreover, why waste it on junk food?
Many families and people have become too dependent on food stamps. “Critics of food stamps and government spending, however, argue that too many families have become dependent on government aid.”(NoteCard #1) But if they did not have this program people would go hungry. “11.9 million people went hungry in the United States”... “that included nearly 700,000 children, up more than 50% from the year before.”(NoteCard #2, Point 2) The program does good and helps people but it also spends a lot of money to get people food stamps. “..food-stamp recipients has soared to 44 million from 26 million in 2007, and the costa have more than doubled to $77 billion from $33 billion.”(NoteCard #5) But in the end, is it worth it? People need the assistance. It does help people from going hungry and keeps them at least with a little food in their stomach to that keeps them from starving. A lot of people who could not get jobs, were eligible for the program because they did not have a source of income. “Critics of food stamps and government spending, however, argue that too many families have become dependent on government aid.”(NoteCard #1) Since not everyone could get work, the government changed the requirements and it went for the better and for the
In the year 2015, around 40 million U.S. citizens were food insecure (Randall para. 3). Food insecurity can be defined in paragraph 3 by “[having] difficulty at some time during the year providing enough food for all their members due to a lack of resources. This 12.7% of American citizens also contains another group - children. Aged 10-17, 6.8 million adolescents struggle with a food insecurity. There have been several years of cuts to the social programs designed to help these people, along with the Great Recession continuing to leave an impact on the U.S. economy (para. 6). Under the Obama administration, $8.6 billion was cut from the Supplemental Nutritional Assistance Program (SNAP), formerly known as Food Stamps. From 1993-2001 under the Clinton administration, former President Bill Clinton’s administration “gutted the welfare system” (para. 15). Because of these budget cuts, the families who rely on food assistance from the government have been allotted less throughout the years. From a sociological perspective, the concepts of sociological imagination, class stratification, and social location are in effect when it comes to child hunger in the United States. Being hungry is an issue larger than any one individual can control.
As I stated early, I am against food stamps. I am opposing towards because it creates a toll on the American taxpayers. We are contributing to fraud, the obesity rate and letting people have no incentives to work. The government makes food stamps so easy to access with the qualifications being so low. Even with the working poor getting “free” money for food, they still have no motivation to better their lives and find a job. I care about this matter because I, as a young adult, I pay tax myself. I hope that the government too will consider eliminating or reforming the Supplement Nutrition Assistant Program in a more efficient way that possibly could benefit not only the working poor but as well as American taxpayers.
Food insecurity does not discriminate; it reaches many segments of society (Whitney, DeBruyne, Pinna, & Rolfes, 2007). Even through closely related to poverty, not all that have food insecurities are in poverty. Often it is the working poor that are hit the hardest. The working poor are a group that despite having a job, there income is too low to meet their need or that of their family. Most of the working poor (56%) live in families with children, so that the poverty of these workers affects many others as well (Problems Facing the Working Poor, Kim 1999). Many lower to middle class families will temporarily struggle with food insecurity at various times during the year. For these families government assistance may not immediately available. Appling for Supplemental Nutrition Assistanc...
Though placing programs to help those Americans to get back on their feet, the money that was given to these programs was placed on budget cuts that would limit the amount of money given to each family for the month. According to welfareinfo.org, "an average expectation can be placed on a family of 4 receiving up to $900" a month, which may covers most of the expenses for the purchases of food and the renting of an apartment. However, if that family does not have the ability to obtain additional income, then the nine hundred dollars for a whole month will never help his or her family out of poverty. Additionally, for someone that has worked in a grocery store, a cashier can get a sense of average price to feed a family of four, which can be estimated between two-hundred and three-hundred per week. Especially with the cost of rent on top of grocery prices, it can really cause a family a lot of problems. To demonstrate these points, when looking back at Jo Goodwin Parker 's piece, "What is Poverty?", she provides a good idea of why poverty can be so painful: "it was, and is, seven-eight dollars a month for the hour of us; that is all I ever can get. Now you know why there is no soap, no needles and thread, no hot water, no aspirin, no worm medic.... none of these things forever and ever and ever" (Parker
...ults of the recession. In order for this never to happen again, there is a need to learn from the mistakes in the past and to look for the warning signs. The problem is not just restricted to one country, but is a global problem and needs to be addressed as such.
Today SNAP is the new name of the federal Food Stamp Program. “SNAP stands for Supplemental Nutrition Assistance Program. The name was changed to SNAP to meet the needs of clients, which includes a focus on nutrition and an increase in the amount of benefit received” ("supplemental nutrition,"2011). Another detail about SNAP is its ability to respond to changing needs caused by economic cycles or natural emergencies on the local, state and national levels. It is second to unemployment insurance in its responsiveness to economic changes. SNAP is very helpful to low-income families’ monthly resources, increasing the chance families is able to meet basic needs.
West, Rachel and Michael Reich. “The Effects of Minimum Wages on SNAP Enrollments and Expenditures” Center for American Progress. Center for American Progress, 5 March 2014. Web. 5 March 2014.
According to the American Psychological Association, “In 2010, the poverty threshold, or poverty line, was 22,314 dollars for a family of four” (2). People living in poverty may be forced to depend on public assistance programs such as food stamps, or more formally known as Supplemental Nutrition Assistance Program or SNAP. On the exterior, this program seems to benefit hungry families, but in all actually it is actually facilitating their obesity. The formerly mentioned family of four would be qualified to receive a maximum of 688 dollars a month in food stamps (North Carolina Department of Health and Human Services). That equates to just over 170 dollars a week or 40 dollars per family member. A paltry amount such as this forces families to make difficult decisions regarding the amount and type of food they provide their family.
It is regarded as temporary help and it is attached with stigma. Snap would be considered residual welfare. Institutional welfare is seen as normal way of fulfilling social needs. There tends to be no stigma attached and it is services that all categories of people. As recently announced lunch will be free for every child in NYC public schools regardless of income. Prior to this school year some families had to pay for lunch depending on income. Additionally for the children that did qualify for the free lunch sometimes skipped out of not eating for fear of bullying or the stigma that comes along with subsidized school meals. This universal lunch program will meet the universal needs of children. Universal welfare are services that do not require children or families to meet specific eligibility criteria. It is available for all and attracts all categories of people such as public education. On the other hand, selective programs are eligibility determined on a case-to-case basis. In order for one to qualify for SNAP they are screened
Alaimo, K., Olson, C. M., Frongillo, E. A., & Briefel, R. R. (2001). Food insufficiency, family income, and
Poverty in America is measured using thresholds and guidelines that are updated each year so that we have a more accurate picture of who is in need. Using these standards it is then decided who is impoverished. According to the Institute for Research on Poverty (2013) a family of four, who makes less than $23,492 in a year, are considered poor. There are numerous federal programs provided by the government that are designed to help those who are in need. Some of these programs provide food stamps, free lunches, Medicaid, Head Start, and rent assistance. Although these programs are helpful to people who need them they do not entirely prevent children from the consequences of being poor.