Who Is Using The Most Food Stamps? Blacks or Whites?
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Who Is Using The Most Food Stamps?
Blacks or Whites?
Blacks or Whites?
Who Is Using Food Stamps?
There are more white people on food stamps than black people, according to SNAP.
The Supplemental Nutritional Assistance Program provides food stamps for almost 47 million Americans. Of those 47 million people, 43 percent of them are white and 33 percent are black. Approximately 19 percent are Hispanic, 2 percent are Asian and the remainder are Native America.
The Economix blog at the New York Times reported the following in February of last year.
Another finding of the study is that the distribution of benefits no longer aligns with the demography of poverty. African-Americans, who make up 22 percent of the poor, receive 14 percent of government benefits, close to their 12 percent population share.
White non-Hispanics, who make up 42 percent of the poor, receive 69 percent of government benefits – again, much closer to their 64 percent population share.
Again, blacks comprise 22 percent of the poor, but blacks only take in 14 percent of government benefits. Conversely, whites make up 42 percent of the poor , but take in a disproportionate 69 percent of government benefits.
There were 46.2 million Americans on food stamps in May, the latest data available, down 1.6 million from a record 47.8 million in December 2012. Some 14.8% of the U.S. population is on the Supplemental Nutrition Assistance Program, or SNAP, down from 15.3% last August, U.S. Department of Agriculture data show.
"More people are starting to report that they have just recently been hired" and have pay that is reasonable enough to make them ineligible, said Alba Brookins, who helps run Jefferson County's SNAP program. "Any decrease [in SNAP] is significant, because it had been on the increase for so long."
A decline would be welcome in Washington, where food stamps have been a political lightning rod among lawmakers. Proponents say they help low-income people get back on their feet and stimulate the economy, while critics say they foster dependence on the government and seek to cut them.
Truck Driver Louis Alexander Says Food
Stamps Helped Get
Him Back On His Feet After He Lost His Job Last Year.
Him Back On His Feet After He Lost His Job Last Year.
Food-stamp use remains high, historically speaking. The share of Americans on the benefit—which lets them buy basics like cereal and meat and treats like cookies, but not tobacco, alcohol or pet food—is above the 8% to 11% that prevailed before the financial crisis.
One beneficiary-turned-former-beneficiary is Louis Alexander. Mr. Alexander turned to food stamps last year after losing his job as a maintenance man. A year later, he is working again—as a truck driver for a company near his home in Louisville, Ky.
He credits food stamps for helping him eat and pay his other bills while job searching.
Now, eager to be a "giver," not a "taker," the 53-year-old has stopped collecting stamps and is socking away savings. Before his latest haul, he bought his girlfriend an engagement ring. "Everything fell right into place," he said. "I feel like I'm the luckiest man in the world."
Declining use of food stamps is a positive signal for the economy. It suggests that recent improvements in labor markets are reaching more Americans, especially lower-income ones. If more Americans have cash, that could fuel spending, a primary driver of the economy. For years, the recovery has been disappointing, partly because weak growth in inflation-adjusted wages has limited consumer demand for goods and services.
"In the last four, five months, we have seen a pretty steady drop," said Ed Bolen, senior policy analyst at the Center on Budget and Policy Priorities, a Washington, D.C., think tank.
And experts expect enrollment and costs to keep falling: As more Americans find jobs and collect paychecks, fewer will be eligible, lowering program costs. The Congressional Budget Office sees food-stamp costs—now running at $80 billion, or 0.5% of gross domestic product—returning to 1995 levels around 0.35% as a share of GDP in five years.
SNAP rolls are contracting in most states, including Kentucky, where Mr. Alexander lives. The state saw a 6.1% drop in people enrolled in SNAP in May versus a year earlier. Roughly 136,000 people are on SNAP in Jefferson County, where Louisville is located, down from 139,000 in the state's previous fiscal year, officials say.
"More people are starting to report that they have just recently been hired" and have pay that is reasonable enough to make them ineligible, said Alba Brookins, who helps run Jefferson County's SNAP program. "Any decrease [in SNAP] is significant, because it had been on the increase for so long."
A decline would be welcome in Washington, where food stamps have been a political lightning rod among lawmakers. Proponents say they help low-income people get back on their feet and stimulate the economy, while critics say they foster dependence on the government and seek to cut them.
A decline would be welcome in Washington, where food stamps have been a political lightning rod among lawmakers. Proponents say they help low-income people get back on their feet and stimulate the economy, while critics say they foster dependence on the government and seek to cut them.
But plenty of new people seek assistance each month. And changes to SNAP likely will keep rolls from dropping back to the levels of previous decades. States have expanded their outreach to get more people to apply for SNAP, which the federal government pays for. Eligibility requirements have eased, and a much bigger share of those eligible now enroll.
Kenneth Taylor, a veteran of the first Iraq war, had to leave his job in shoplifting prevention in a store this spring after being diagnosed with cancer.
The 47-year-old, who lives near Indianapolis, also recently separated from his wife. He is collecting $400 a month via stamps to feed his three children, ages 10, 11 and 12, and recently sold his gun collection for about $1,000. "I haven't been out of a job for 30 years," he said. "This is the first time I've ever had to be on any kind of public assistance."
While exact requirements vary by state, a would-be participant's household generally must have a "gross income" that is at or below 130% of the federal poverty line, which is $23,492 for a family of four, and "net income"—income minus things like high housing costs and medical expenses for elderly family—that is 100% of the federal poverty line or below.
Looser "asset" tests, however, mean some Americans with savings in the bank are eligible that wouldn't have been years ago.
Despite all the factors pushing up SNAP participation, food-stamp use is starting to fall, largely because more Americans are becoming ineligible as their incomes grow, government and budget experts said. The expiration of some expanded benefits last fall is another factor.
In May, SNAP participation fell in 43 states compared with a year earlier, while rates of growth in other states have slowed considerably.
In Arizona, the number of people enrolled fell 7%; in South Carolina, 6.2%. Nationally, SNAP rolls dropped 3% in May from a year earlier. (States such as North Carolina and Georgia have seen outsize drops, but largely due to state-specific quirks, including SNAP processing backlogs. Such drops aren't driving the national decline in SNAP rolls, experts said.)
For Jessica Singh, an unmarried mother who stopped using food stamps this spring, things are generally looking up.
In Arizona, the number of people enrolled fell 7%; in South Carolina, 6.2%. Nationally, SNAP rolls dropped 3% in May from a year earlier. (States such as North Carolina and Georgia have seen outsize drops, but largely due to state-specific quirks, including SNAP processing backlogs. Such drops aren't driving the national decline in SNAP rolls, experts said.)
For Jessica Singh, an unmarried mother who stopped using food stamps this spring, things are generally looking up.
After being dependent on SNAP for over two years, the 26-year-old in Fort Wayne, Ind., got a degree in human services, found internships and has landed two part-time jobs, including one at a domestic-violence shelter. Food stamps "definitely gave me a sense of stability," she said. "You know there is going to be food on the table."
And yet it isn't easy going without SNAP's safety net. If her 2-year-old gets sick and Ms. Singh can't work, her income takes a hit. Last month, Ms. Singh visited a food pantry for the first time, picking up free boxes of pancake mix, cereal and Hamburger Helper, along with toilet paper. She said she will go earlier next time; by the time she got there during her first trip, items like bananas and hamburger meat were gone.
Are Consumers Ready to Spend Again?
In August, The Commerce Department Said
U.S. Retail
Spending Was Flat In July. Shown, A Newly Opened
J.C. Penney Store At The Gateway Center Mall In Brooklyn, N.Y.
Spending Was Flat In July. Shown, A Newly Opened
J.C. Penney Store At The Gateway Center Mall In Brooklyn, N.Y.
That's because it is unclear whether consumers—the engine behind more than two-thirds of the American economy—are ready to resume spending at significant levels.
Signals are mixed. After years of lackluster growth, corporate revenues for large companies grew more rapidly in the second quarter, and company guidance suggests that trend will continue in the second half of the year. The Conference Board said consumer confidence picked up in August.
Employment continued to tick upward. Gross domestic product jumped in the second quarter as businesses and consumers made up for the first quarter's lousy weather. Economists are predicting growth at a 3% rate for the second half, and 2% growth for the full year.
Still, the retail industry, tied more closely to consumer spending than any other, is struggling. In August, the Commerce Department said U.S. retail spending was flat in July. And household spending declined by 0.1% in July, the first drop in personal spending since January.
Investors are clearly nervous as well. For much of August, retailers and a grocer made up most of the 10 worst-performing stocks in the S&P 500 index: Coach Inc., down 34% for the year; Whole Foods Market Inc., down 32%; Mattel Inc., down 28%; Staples Inc., down 26%; and Bed Bath & Beyond Inc. and Best Buy Co., both down about 20%. Avon Products Inc. and Fossil Group Inc. also lagged behind, down about 18% and 16%, respectively. The Dow Jones U.S. Retail Index has struggled to mark gains so far this year.
Still, the retail industry, tied more closely to consumer spending than any other, is struggling. In August, the Commerce Department said U.S. retail spending was flat in July. And household spending declined by 0.1% in July, the first drop in personal spending since January.
(Buy/Rent/Layaway)
One indication that investor anxiety may be justified: When retailers talk about sales growth, many are reserved in their projections. On Aug. 26, Best Buy predicted a tough holiday season marked by steep discounts and weak demand after recording a 2% drop in sales at U.S. stores open at least 14 months. And in some sectors, including low-end dollar stores, companies may be benefiting more from market share than broader growth.
"Revenues are doing better than they were," says Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. But companies "don't think consumers are going to be spending that much more."
At Home, a closely held Texas home-furnishings chain with 75 locations in 21 states that advertises low prices, says sales are up 20% year over year. The company is seeing new customers, more-frequent visits and higher ticket prices amid mediocre increases in overall consumer spending, which means much of the growth is coming at the expense of competitors, Chief Executive Lee Bird says.
"There's growth here, but we're getting a disproportionate share of that," Mr. Bird says. "We're definitely taking share while growing with a sluggish economy."
And then there is the question of how much capacity consumers have to spend. What isn't spent is generally saved. But the savings rate in the U.S. is about 5.3%, at or below recent trends.
In other words, there may not be enough untapped spending power sitting on the sidelines, waiting for confidence to improve, to fuel a strong consumer recovery, says Dean Baker, an economist and co-director of the Center for Economic and Policy Research in Washington.
So far, that has been true for customers of Hibbett Sports Inc., a sporting-goods retailer with primarily lower-income customers in the South, Southwest, Midwest and mid-Atlantic, says Scott Bowman, the company's chief financial officer. The company saw sales inch up just 0.1% in the quarter ended Aug. 2, excluding new and closed stores.
"That lower-than-average-income consumer has a few more headwinds than the upper-tier consumer, with static wage growth, underemployment," Mr. Bowman says. "I think it will get better, but it will be gradual."
In other words, there may not be enough untapped spending power sitting on the sidelines, waiting for confidence to improve, to fuel a strong consumer recovery, says Dean Baker, an economist and co-director of the Center for Economic and Policy Research in Washington.
So far, that has been true for customers of Hibbett Sports Inc., a sporting-goods retailer with primarily lower-income customers in the South, Southwest, Midwest and mid-Atlantic, says Scott Bowman, the company's chief financial officer. The company saw sales inch up just 0.1% in the quarter ended Aug. 2, excluding new and closed stores.
"That lower-than-average-income consumer has a few more headwinds than the upper-tier consumer, with static wage growth, underemployment," Mr. Bowman says. "I think it will get better, but it will be gradual."
Still, consumers have managed to rally before. And some economists are more upbeat. While summer monthly sales figures looked grim, the year so far hasn't been terrible. At about 4%, year-over-year retail sales growth is reasonable, says Mark Zandi, chief economist for Moody's Analytics.
Consumer spending overall also is roughly matching income growth, with consumer confidence at prerecession levels and debt payments at record lows, he added.
"As long as the job market continues to improve, and it is, then I think consumers will continue to ramp up their spending consistent with that," or possibly higher if they decide it is safe to borrow more, Mr. Zandi says. "I think it is fair to say that consumers are doing their part for the recovery."
The USDA Reported That 14.3% Of
American Households
Didn't Have Access To Enough Food At Some Point In 2013
Because They Didn't Have The Money Or Other Resources To Get It.
Didn't Have Access To Enough Food At Some Point In 2013
Because They Didn't Have The Money Or Other Resources To Get It.
Meanwhile, Fewer Americans Struggle to Feed Themselves, USDA Finds
Number of U.S. Households With Inadequate Food Remains Historically High at 17.5 Million in 2013
(Buy/Rent/Layaway)
The USDA reported that 14.3% of American households didn't have access to enough food at some point in 2013 because they didn't have the money or other resources to get it.
The number of U.S. households struggling to put food on the table totaled 17.5 million in 2013, a slight decrease from a year earlier but still a historically high number, according to government figures released on Wednesday.
A report by the U.S. Department of Agriculture said 14.3% of American households didn't have access to adequate amounts of food at some point during the year because they didn't have the money or other resources to get it. Of those, 5.6% were considered to have "very low food security," which means members of the household had to cut back on their meals or change normal eating patterns.
The 2013 data remain virtually unchanged from the 2012 total of 17.6 million households that had limited access to food. But they represent a larger drop from 2011, when a record 17.9 million U.S. households qualified as "food insecure."
The number of U.S. households struggling to put food on the table totaled 17.5 million in 2013, a slight decrease from a year earlier but still a historically high number, according to government figures released on Wednesday.
A report by the U.S. Department of Agriculture said 14.3% of American households didn't have access to adequate amounts of food at some point during the year because they didn't have the money or other resources to get it. Of those, 5.6% were considered to have "very low food security," which means members of the household had to cut back on their meals or change normal eating patterns.
The 2013 data remain virtually unchanged from the 2012 total of 17.6 million households that had limited access to food. But they represent a larger drop from 2011, when a record 17.9 million U.S. households qualified as "food insecure."
(Buy/Rent/Layaway)
More recent figures signal an improving picture for Americans' struggling to feed themselves. The number of Americans using food stamps reached 46.2 million in May, according to the most recent data, down from a record 47.8 million in December.
But much like the statistics on food security, the food-stamp numbers are historically high compared with prerecession data, suggesting ongoing challenges facing Americans at the bottom rungs of the economic ladder.
Against this backdrop, lawmakers continue to debate the future of government nutrition programs, such as food stamps, formally known as the Supplemental Nutrition Assistance Program.
Rep. Mike Conaway (R., Texas), a likely candidate to chair the House Agriculture Committee next year if Republicans maintain control of the House, is expected to tackle changes to the food-stamp program. Mr. Conaway has said, for example, that able-bodied adults without children should have to meet work requirements to receive assistance.
The House Agriculture Committee is in charge of the national farm bill, which includes funding for the food-stamp program.
(Buy/Rent/Layaway)
A little more than 60% of the families surveyed for the USDA report said that in the previous month they participated in at least one of the largest federal food-assistance programs. Among them are the food-stamp program and the national school-lunch program, which provides free or low-cost meals to children.
Feeding America, a hunger-relief charity that operates a network of food banks, said the newest data from USDA signal that low-income workers are still struggling to meet basic needs even though other economic indicators, like unemployment data, suggest the economy is gaining strength.
"The reality is millions of low-income Americans are still unemployed or working part time because they can't find full-time employment," spokeswoman Maura Daly said.
Feeding America, a hunger-relief charity that operates a network of food banks, said the newest data from USDA signal that low-income workers are still struggling to meet basic needs even though other economic indicators, like unemployment data, suggest the economy is gaining strength.
"The reality is millions of low-income Americans are still unemployed or working part time because they can't find full-time employment," spokeswoman Maura Daly said.
Monty Henry, Owner
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