Category: Social Safety Net

On Food Stamps

And no, I don’t mean that my family is on food stamps, not yet anyway, though we have applied for them, at Sharon’s* insistence, since I’ve been out of work for 5 months.

To put it mildly, I have very mixed emotions about this: I still have savings, and cars, and a house, and there is a part of me that feels that I am somehow not deserving of these benefits as a result….Though ultimately, it will be a case officer who will be making that call.

I’ve never bought into the “Lazy, shiftless, insertprogramhere recipient,” meme, but it feels wrong for me to be an “insertprogramhere recipient,” personally.

In any case, there is a New York Times article discussing the growing number of people who are availing themselves of the safety net program that they once disdained.

Some people who have found themselves on some form of public assistance have come away with a new compassion for those in need, and realize that they are just like themselves, but others take this experience, and see it as another justification for hate, as in the case of the comments in the article from Greg Dawson, who is on food stamps despite having a job:

With most of his co-workers laid off, Greg Dawson, a third-generation electrician in rural Martinsville, considers himself lucky to still have a job. He works the night shift for a contracting firm, installing freezer lights in a chain of grocery stores. But when his overtime income vanished and his expenses went up, Mr. Dawson started skimping on meals to feed his wife and five children.

He tried to fill up on cereal and eggs. He ate a lot of Spam. Then he went to work with a grumbling stomach to shine lights on food he could not afford. When an outreach worker appeared at his son’s Head Start program, Mr. Dawson gave in.

“It’s embarrassing,” said Mr. Dawson, 29, a taciturn man with a wispy goatee who is so uneasy about the monthly benefit of $300 that he has not told his parents. “I always thought it was people trying to milk the system. But we just felt like we really needed the help right now.”

While Mr. Dawson, the electrician, has kept his job, the drive to distant work sites has doubled his gas bill, food prices rose sharply last year and his health insurance premiums have soared. His monthly expenses have risen by about $400, and the elimination of overtime has cost him $200 a month. Food stamps help fill the gap.

Like many new beneficiaries here, Mr. Dawson argues that people often abuse the program and is quick to say he is different. While some people “choose not to get married, just so they can apply for benefits,” he is a married, churchgoing man who works and owns his home. While “some people put piles of steaks in their carts,” he will not use the government’s money for luxuries like coffee or soda. “To me, that’s just morally wrong,” he said.

He has noticed crowds of midnight shoppers once a month when benefits get renewed. While policy analysts, spotting similar crowds nationwide, have called them a sign of increased hunger, he sees idleness. “Generally, if you’re up at that hour and not working, what are you into?” he said.

Unlike many of the other people, who have come to the conclusion that people down on their luck are simply down on their luck, Mr. Dawson still steadfastly maintains that he’s a worthy recipient, and the rest are all a bunch of spongers on the system?

Why does he think this? My guess is because a lot of them are not white, and he just knows how shiftless and lazy they are, but I’m an but I’m an engineer, not a psychologist, dammit,, which makes it so much supposition.

On a deeper level, if we look at what he is saying, and simply take it at face value, this is all about jealousy, selfishness, and a fear of the other.

Because, you see if someone, anyone, is somehow getting a bit more than they deserve, then the programs just support lazy people, and should be eliminated.

It is this sort of the thinking is the only thing that has the Republican Party remaining politically viable: Too many people need someone/something to hate.

H/t Atrios.

*Love of my life, light of the cosmos, she who must be obeyed, my wife.
There is something fundamentally suspicious about a man in a goatee, that’s why the evil Spock in Mirror, Mirror wore one.
I LOVE IT when I get to go all Doctor McCoy!!!.

I am so (NOT) Shocked: Social Security and the Sky is Falling Edition

Reductions in employment have reduced receipts for Social Security, which has pushed up the theoretical insolvency date, to 2037, and of course, everyone is running like chickens with their heads cut off trying to figure out how to hand everything to the Wall Streeters who completely f$#@ed the nation as a result.

It is true that Medicare is in trouble, but Social security, not so much.

Truman’s Aphorism on Phony Republicans Applies to Germans Too

As our 33rd president of the United States once said, “When people have the choice between a real Republican and a fake Republican, they’ll choose the real thing.”

It appears that Kurt Beck, head of the German Social Democrats, and Frank-Walter Steinmeier, their most likely candidate for premier in the next election, are discovering just how right Truman was.

They are unable to do anything to lower Angela Merkel’s popularity, and the party is now hemorrhaging members to the “Left Party”, created from trade unionists and the ashes of the old East German communist party.

If they have any chance of returning to power, they will necessarily have to be in coalition with the Left Party, and probably the Green Party too, but the LP would require more concessions, if the GP’s time in the coalition is any indication.

The LP would likely require a roll back of some of the anti-worker and anti-safety net policies of Shroder, which are a much bigger deal than the GP’s focus on environmental issues.

There is also a pensioner party forming to resist cutbacks in government pensions which may grab a few seats in the next elections.

Because You Can Always Break Promises to the Little People

So here we have an article where we see hand wringing because European governments are not being aggressive enough in reducing benefits for pensioners.

These generous pension deals were made as part of a very simple equation: The public accepted less generous wages in exchange for the pension benefits.

But now, its inconvenient for countries trying to emulate the US YOYO (You’re On Your Own) model, so they want to ignore their contract.

Shades of the big 2½ automakers, who cut the same deal in the 1960s, and now want to be releases.

It’s going to be expensive, but that was known when these deals were cut in the 1950s and 1960s.

Obama’s Donut Hole Social Security Tax

He is proposing restarting the tax for incomes above $250,000.

I’m not too fond of the donut hole he is proposing, but I understand the politics here.

There are a lot more voters between (IIRC) $104K and $250K, but a lot more money above 250K.

One thing that needs be done though is that the definition of “wages” needs to be expanded, or a lot of these folks will move “wages” to dividends and capital gains.

The New Hooverville is a Parking Lot

And many of the people in America are a job loss away from it:

Harvey now works part time for $8 an hour, and she draws Social Security to help make ends meet. But she still cannot afford an apartment, and so every night she pulls into a gated parking lot to sleep in her car, along with other women who find themselves in a similar predicament.

There are 12 parking lots across Santa Barbara that have been set up to accommodate the growing middle-class homelessness. These lots are believed to be part of the first program of its kind in the United States, according to organizers.

The lots open at 7 p.m. and close at 7 a.m. and are run by New Beginnings Counseling Center, a homeless outreach organization.

Welcome to George W. Bush’s America.

Economics Update

First, let me complain, yet again, about the nature of financial reporting. They are neck deep in dung, but they continue to look for a pony.

Cases in pointL

The the Institute for Supply Management’s (ISM) manufacturing index rose to 48.6 from 48.3 in February, which while higher than the 47.5 anticipated is still a contraction. Any number below 50 is a contraction. The index is a derivative (the calculus type, not the financial type), with 50 being zero. 48.6 is still a trend down, and this should be the lede.

Then we have construction spending “falling less than expected“. Again, construction spending fell, and while the “consensus” was 0.9%, and it fell 0.3%, this isn’t news, unless you tell us who, or why the consensus was that number.

Grrrrr.

On the “economic news for the rest of us” front, we have predictions that 200,000 jobs will be eliminated in the banking sector, and the number of food stamp recipients has gone through the roof.

BTW, if you are wondering if the real estate collapse is just a locak phemenon, the answer is no. We are now seeing the beginnings of a real estate collapse in china, and the housing crunch has now moved to the Hamptons.

Shanghai and the Hamptons. When you look at the range covered, there ain’t much left outside of this.

In the world of currency, it appears that the dollar has had the biggest quarterly loss since Q4 2004. The ECB is concerned with inflation, and quite honestly is not experiencing the same sort of meltdown that the US is, so it’s holding rates steady, which strengthens the Euro.

Finally, we have banks writing down billions of dollars (here, and here) in various bad investments. The markets rewarded them today, but I think that this will get much worse before it gets any better.

Remember, Stocks are Always the Best Long Term Investment

Except, of course when they are not, as has been the case in what the Wall Street Journal so evocatively calls the Lost Decade, where stocks have provided no return over the past decade.

This is not surprising, seeing as how we are coming off a bubble, tech stocks segueing into real estate, and this is when stocks don’t do well.

Dean Baker asks the question the WSJ won’t, “What if your social security was invested in this?

The answer is that we, and our parents and grand parents, would be completely screwed.

Bull%#&@!

Yes, Secretary Paulson is saying that we need to take immediate action to “fix” Social Security.

They are, of course, using the word “fix” much in the same way that my veteranarian does.

We are (run around and scream like a little girl) about 41 years from insolvency! Ten years ago we were 42 years from insolvency! Think about what this means?

Ummmm…that in 410 years we will be down to zero years? But what do I know about math…I’m an engineer.

I think that the earnings cap should be removed and a portion of the amount collected needs to be diverted to medicare, where there is a problem, but my main reason for wanting the cap raised is the same is Warren Buffett. We both find it completely absurd that his secretary pays more of her salary in taxes than he does.

The Republicans want to kill Social Security. There is no crisis, and it does not need to be fixed, but it is a Federal program, it does not kill people, and it helps ordinary people, so they hate it for philosophical reasons.

The response to Republican attempts to kill Social Security should be, “Over the Elephant’s dead rotting body”.

A Rebuttal to An Earlier Post

I made a post on Barack Obama’s policies regarding the stimulus package, and Barack Obama’s and specifically his advisor, Austan Goolsbee’s position on the low income heating assistance program.

Dr. Goolsbee took exception to my post in the comments, and has granted me permission to reproduce it as a post, which follows:

This is totally bogus. I have never opposed LIHEAP as a program and neither has Senator Obama (who has voted many times to fund the program). The only objection to the program–in the CNBC clip and in all previous discussions–is trying to use LIHEAP as a stimulus program. Because there is an application process, it won’t get out the door quickly. Obama’s stimulus plan would cut checks for low income people that are BIGGER than the LIHEAP checks and would send them the money right away.

Proof that I support LIHEAP just not as a stimulus, see the debate over stimulus is the NY Observer of January 24

“For the most part, Goolsbee had little to take issue with. He had a much bigger problem with the Clinton plan’s call for $25 billion in emergency energy assistance for families facing skyrocketing heating bills. Goolsbee’s criticism of this component was consistent with his major beef with Clinton’s entire stimulus plan, which is that it would take way too long to enact, and therefore wouldn’t provide for any real stimulus at all.

Here’s Goolsbee’s critique: “It is a very detailed program. It is a very good program that people are familiar with but it just isn’t a stimulus. It is for winter heat and by the time this thing gets through we’d be talking about next winter. Two, it’s a five to 10-page application process which is significantly onerous.

He added, “After convincing the people to apply and getting them to fill out the application process, you then have an evaluation process, so this will take many months if not a year to get out the door.”

Note: there were some apostrophes that were munged by haloscan that I corrected. Otherwise it is as posted.

Obama To Maine – ‘Drop Dead’

Lets be clear, normally, I find Rense to be an unreliable source, but this is analysis and, there is a video on CNBC where Austan Goolsbee says what Rense says he said.

video where he is dismissive of LIHEAP.

Obama To Maine – ‘Drop Dead’

Blocked Emergency LIHEAP Money For Maine This Winter
2-8-8

AUGUSTA — Barack Obama’s chief economics adviser Austan Goolsbee today boasted that the Obama campaign had helped to prevent emergency heating assistance for low-income families from being included in the just-approved economic stimulus package which is now on its way to President Bush’s desk for signature. An increase in federal low-income heating assistance (known as LIHEAP), Goolsbee pointed out, had been championed by Obama’s opponent, New York Democratic Senator Hillary Clinton. Goolsbee’s remarks came in an interview this morning with Carl Quintanilla of CNBC business news television.”

It’s clear in the video, where Goolsbee dismisses LIHEAP as bureaucratic and wasteful.

Keeping poor people from freezing is a core Democratic Party value. In Maine, it’s a bipartisan value, but the folks who made it to the caucuses there are clearly too well off to qualify for the program, or to care about those who do.

George W. Bush has spent 7 years trying to make the poor poorer, and to denigrate this program, which helps the poor heat their homes in the winter is repulsive.

Goolsbee is “Chicago School Lite” on his economics, which may be useful for contacts with the press, which is increasingly overpaid, overfed (Candy Crowley), and self importantly proclaiming its support for the low wage economics that have prevailed since the mid 1970s, but it is not good for the American people or the Democratic Party.