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Making Money On Poverty: JP Morgan Makes Bigger Profits When The Number Of Americans On Food Stamps Goes Up

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How would you feel if someone told you that one of the largest banks on Wall Street makes more money whenever the number of Americans on food stamps goes up?  Unfortunately, this is something that is actually true.  In the United States today, one out of every seven Americans is on food stamps.  In fact, the number of Americans on food stamps has increased by a whopping 14 million since Barack Obama entered the White House.  All of this makes JP Morgan very happy, because JP Morgan has been making money by the boatload on food stamps.  Right now, JP Morgan Chase issues food stamp debit cards in 26 U.S. states and the District of Columbia.  The division of JP Morgan Chase that issues these debit cards made an eye-popping 5.47 billion dollars in net revenue during 2010.  JP Morgan is paid per customer, so when the number of Americans on food stamps goes up, they make more money.  But doesn’t this give JP Morgan an incentive to try to keep the number of Americans on food stamps as high as possible?  Of course it does.  JP Morgan is interested in making money as rapidly as possible. If JP Morgan can get more Americans enrolled in the food stamp program and keep them enrolled in it for as long as possible, that is good for business.

And the Obama administration is certainly doing what it can to help out.  Even though a whopping 46 million Americans are now on food stamps, the Obama administration plans to give out large amounts of money to organizations that are able figure out ways to get even more people enrolled in the program….

Despite the historic rise in food stamp use, however, the Obama Administration believes not enough people are receiving food stamps who should be and is offering $75,000 grants to groups who devise “effective strategies” to “increase program participation” among those who have yet to sign up.

In fact, U.S. Agriculture Secretary Tom Vilsack says that if we can get even more Americans enrolled in the food stamp program, that will be a great way to “stimulate the economy“.

Of course JP Morgan just loves all of this.  The more people they have in the system the better.

Christopher Paton, the managing director of JP Morgan’s “Treasury Solutions” business, made the following statement about the “food stamp business” that his firm is engaged in during an interview with Bloomberg Television….

“This business is a very important business to JPMorgan. It’s an important business in terms of its size and scale…Right now, volumes have gone through the roof in the past couple of years. The good news, from JPMorgan’s perspective, is the infrastructure that we built has been able to cope with that increase in volume.”

You can see more of the interview with Paton in the video posted below….

As the interview above noted, more than 40 percent of all food stamp recipients in the United States actually have a job.

This is an exciting “growth area” for JP Morgan.  As the middle class continues to decline, the number of “the working poor” in America is exploding.

Back in 1980, less than 30% of all jobs in the United States were low income jobs.  Today, more than 40% of all jobs in the United States are low income jobs.  This trend is perfect for JP Morgan because it means that the number of low income workers that are eligible for food stamps is going to keep increasing.

And what makes all of this even sadder is that JP Morgan has outsourced many of the customer service jobs for its food stamp program to India.

Yes, you read that correctly.

When Americans that can’t find a decent job need help with their food stamps there is a good chance that they will be talking to a customer service representative sitting in India.

Isn’t that crazy?

When ABC News confronted JP Morgan about this, JP Morgan would not tell ABC which states have customer service calls sent to India and which states have them handled inside the United States….

JP Morgan is the only one today still operating public-assistance call centers overseas. The company refused to say which states had calls routed to India and which ones had calls stay domestically. That decision, the company said, was often left up to the individual states.

But JP Morgan doesn’t just handle food stamps.  JP Morgan also issues child support debit cards in 15 states and unemployment insurance debit cards in 7 states.

Of course JP Morgan is not the only big bank involved in this kind of business.  Several others are also making money in massive quantities on the backs of the poor.

The following example comes from a Huffington Post article….

Shawana Busby does not seem like the sort of customer who would be at the center of a major bank’s business plan. Out of work for much of the last three years, she depends upon a $264-a-week unemployment check from the state of South Carolina. But the state has contracted with Bank of America to administer its unemployment benefits, and Busby has frequently found herself incurring bank fees to get her money.

To withdraw her benefits, Busby, 33, uses a Bank of America prepaid debit card on which the state deposits her funds. She could visit a Bank of America ATM free of charge. But this small community in the state’s rural center, her hometown, does not have a Bank of America branch. Neither do the surrounding towns where she drops off her kids at school and attends church.

She could drive north to Columbia, the state capital, and use a Bank of America ATM there. But that entails a 50 mile drive, cutting into her gas budget. So Busby visits the ATMs in her area and begrudgingly accepts the fees, which reach as high as five dollars per transaction. She estimates that she has paid at least $350 in fees to tap her unemployment benefits.

There is something about all of this that just seems very, very wrong.

When we have good jobs, the big banks hit us with outrageous bank fees and they try to get us enslaved to credit card debt.

When we are down on our luck and become dependent on the government, the big banks still find ways of making money at our expense.

Why do the banksters always seem to win and we always seem to lose?

  • Bill

    Snoop Dogg, thank you.

  • Kimberly

    Total madness!

  • BenjiK

    I just can’t get over the $75,000 grant being offered to organizations to PROMOTE food-stamp benefits. What a great economic role-model: Let’s spend large amounts of money to help us spend even more large amounts of money…… It don’t matter how you roll the dice, this is fundamentally wrong and totally insolvent. It’s so absurd that any pre-1960 economist would laugh and call you insane if presented with today’s government programs.

  • Orange Jean

    Sounds to me like this woman needs an education on what a debit card is.

    I live in a rural place myself, have a debit card with my credit union… and most of the places I use to purchase things (grocery store included) I can use the debit card directly. Some stores require it be signed in as credit, but it actually functions as a debit card. For this use there are no fees and no need to use an ATM.

    • Tim

      I was thinking the same thing as I read the excerpt from the Huffington Post article.

    • skeptic

      don’t the card issuers receive a percentage of the purchase amount ?

    • carl

      It all depends on the issuer of the card, Orange Jean. If they wanna see that you’re charged for using ATM’s other than their own- it’s in their power to do things that way.

  • bongstar

    Yes this is how it works! aperantly your starting to learn alittle bit more michael! Thouh this is only of the many atrocities that The Fedaral reserve and there stock holders (JP Morgan being one of them commit.. The Monetary control act of 1980 was begining of some of there worst and most horrifing acts. This act allowed congress To monitize foreign debt. in other words pint money from nothing and then loan it to other countrys. it then classified these loans as assets for the creation of more fiat money.

    • bongstar

      Continuing…. they then in countless country especialy third world, inerupted food supplys and made govornment subsidies and foreign aid nessacary as of to create a perpetual debt play witch allowedthem to rob those nations of any wealtht hey had and then once the wealth was robbed and the countrys were no longer able to pay there loans off, the fed would just print more money and loan enough for them to pay at least there intrests, wich obviously is a direct cost to the american tax payers through the hidden tax of inflation, an intentional plan to rob america of its wealth.

  • mark

    They win with government fees, they win with the interest carry trade, they win by using our deposits and not paying much if any interest, they do not even need our deposits as they get almost free money from the Fed. At least I can say that the banks don’t own me as I don’t owe them any money. No mortgage and no debt, the only thing I can’t get away from are income and property tax. I have to save up each year to come up with the thirty thousand in property taxes, you really never own real estate in America today.

  • William

    The *************** owned/controlled Wall St banks have destroyed America. Nothing else needs to be said………..

  • Gay Veteran

    Because the Banksters OWN both political parties.

    • They own it ALL! Doesn’t it make us happy?

  • Dave

    To my knowledge the recipients of these cards from JP Morgan Chase or any other bank are not charged fees. Rather the fees are charged to the state and federal agencies who contract with the banks and or the businesses where the recipients use these cards to make their purchases. I was drawing unemployment for a short while in TX where the benefits are issued on a Chase debit card and I don’t ever remember getting charged any fees for using it unless I was withdrawing from an ATM. It’s just another thing we, the taxpayer, is footing the bill for.

  • Louise in MO

    When I read facts as those presented in this article my blood pressure rises to new highs.

    From my own experience with big banks hiking interest rates I can believe that JP Morgan and Bank of America engage in the practice you write about.

    The saddest part of it all is that there is no one in our government that cares one bit about these matters. I cannot name one government official from Obama on down that sincerely cares about the people of this country.

    I cannot remember a time when greed has so prevailed in the USA. It’s a time of sorrow for “we the people.” I don’t believe we can recover.

  • A Citizen

    What about when JP Morgan crashes because of the collapse all food will be gone.

    • They will never crash! We, the people, worship them. When the food collapses, they will make money! It’s called opportunity. Not for the average Joe!!!

  • JA

    Yes, you made a good point about JP Morgan; but this was happening under Bush! Besides, the states are in control of how foodstamps are administered & distributed. I think you need to lay off the poor, buddy. It’s really hard out there, and when you denigrate the most vulnerable in our society; it just shows your ingnorance. Not all poor people are bad; not all rich people are good (viceversa), but you seem to rage against the poor! Why don’t you rally for right-to-die, for the poor, the mentally ill, and terminally ill. I have a mental illness, and I don’t hold any qualms towards suicide. In summation, for someone who believes in Jesus; you seem to adovocate for Darwinism.

  • Cobb

    Always seems like the system is set up to remove any and all incentive to employ US workers.

    Not exactly related but I found this conflict of interest annoying as well:

    Also: I enjoy the site (as much as one can “enjoy” these sorts of things). Keep it coming.

  • Gary2

    Michael-its true that many who qualify for food stamps do not sign up as they are unaware that they do not need to be hungry all the time. The right tries to make it harder and harder for qualifying people to sign up.

    I do appreciate your pointing out corporate welfare, however, I could not help but notice how you tie it in with programs that help the poor.

    I guess you can’t resist throwing some red meat to many of your audience.

    • Concerned person


      Two things:

      a) how on earth could you be unaware of food stamps on this country – that is just asinine.

      b) no one is picking on the poor – but the banksters profiting from the looting of the former middle class.

      • Gary2

        a) how on earth could you be unaware of food stamps on this country – that is just asinine.

        I know it sounds unbelievable but this is true-I think the number is that roughly 50% of those who would qualify do not apply either due to all the hoops you have to jump through and that they do not know how to apply.

        As someone who has been on food stamps but just went off them (working a lot of OT) the application/approval process is daunting especially with all the cuts to case workers.

        Sad but true. A co-worker of mine qualified for them and I had to practically beg her to apply. She finally did with my help, and now gets 37 per month. Not much but better than nothing.

      • DownWithLibs

        Just smile and not…you will never be able to get him to see the truth.

        • DownWithLibs

          Oops! That should be smile and nod. And yes, it’s still true!

      • olde reb

        the program is not to help the poor. The amount of money that is consumed by the bureaucrats as wages and overhead is much greater than the benefits the poor receive.

        • gary2

          are you sure? Can you site evidence that is not fox news or rush?

    • John Parker

      Listen Buddy before you throw out accusations about red meat to conservatives educate yourself about the level of fraud in the SNAP program. And if you don’t believe it exists you are quite naive.

  • Colin

    Why do the banksters always seem to win and we always seem to lose?

    Here is your answer:

    The banks have lobbyists, and these lobbyists advocate for the banks’ interests. The working poor have no lobbyists, and have no one who will advocate for their behalf.

    • JustanOguy

      True…. but the voters keep putting up with this crap by voting the same old crony capitalists into office year in and year out.

      Pelosi, Durbin, Reid and the list goes on and on and on…

  • Josh

    Define winning.

    “What good is it for a man to gain the whole world, yet forfeit his soul?”
    Mark 8:36

    • Gary2

      Because before he “looses his soul” He can have a pretty good life!

      • Tim

        Wow. That statement is breathtaking. You obviously don’t know what it means to lose one’s soul. If you think this life is all there is, you are sadly mistaken.

        • Gary2

          Tim-he asked a simple question and I gave him a simple answer. Regardless of what happens when one dies they have to live right now today. You can pray all day and still go to bed hungry.

          *********** I have been praying to have vast wealth and riches but it does not work. God needs to come to me and grant me a wish like he did to this dude who asked for wisdom back in the bible.

          • Tim

            “Surely God will not hear vanity, neither will the Almighty regard it.”

            Job 35:13

            “Now we know that God heareth not sinners: but if any man be a worshipper of God, and doeth his will, him he heareth.”

            John 9:31

        • DownWithLibs

          Yes, one day the truth will be a real shock to this poor gent.

    • LMFAO

      An absolute waste of
      and Lives!

      • how do you know? you haven’t died yet…

      • knightowl77

        I hope & pray (for your sake) that you stop laughing and start believeing before it is too late….

  • This Scam makes the Bernie Madoff And The Y2k scams look very small and unimportant.These people are definately not stupid they know very well how to screw and manipulate people only until there is a complete and total collapse of this country and people pull there heads out of there asses and realize and understand the mistakes that were made and refuse to allow this to be a part of the rebuilding process will we as a society be able to
    return to a respectable lifestyle.To not do so would
    would be insane.

    • LMFAO

      I worked for a major company and we tested old computers and they did fail when the date was set to 00!
      If we didn’t replace them they would have caused some issues.
      Y2K a scam?
      Maybe for some, not for us.

  • All hail the oligarchy.

  • Bill

    So many gripes. Some people do take action. I posted the opening comment because I saw on the Drudge Report that Snoop Dogg was endorsing Ron Paul, the only candidate not representing special interest like big banks.


    • Michael

      It sounds like a great book. Where is it available?



  • Craig

    $200/month on food stamps doesn’t go all that far. That is $6.50/day. The government welfare system is a survival system. It is not a luxury system. The increase in food stamps is due to the large decrease in jobs since the recession started in December/2007. The recession has not ended, and it going to continue to get worse. We are not in a typcial up/down cycle as most believe. If Romney is elected it may slow the process a little, but regardless I don’t think there is a political solution at this point. I may be wrong, but I don’t think so.

    • Gary2

      You mean they are not using food stamp cards for trips to Hawaii? Or tooling around in Cadillacs on their Food Stamp cards?

      They right is so mentally challenged for falling for this BS crap Fox puts out.

      They could not think for themselves if their life depended on it.

      • knightowl77

        It may be your life that depends on critical thought….

        How often do you re-evaluate your assumptions?
        Do you ever consider that someone else may know something that you don’t?
        Do you ever try and figure why your decision making paradigms are 180 degrees off from people like me?

        • gary2

          Do you ever try and figure why your decision making paradigms are 180 degrees off from people like me? (easy answer-I am smart and you …)

          Because I can think for myself and I am not a low information conservative who votes aginst my own self intrests.

          Do you ever consider that someone else may know something that you don’t?

          Yes-I am not an electriction so a electriction would know more than me. A doctor would know more than me about healthcare etc.

          Regarding the economy and politics-I am correct and conservatives are wrong. Its that simple.

    • John Parker

      A family of four gets over $400 a month and on top of that the children get fed two meals a day in the public schools. They can’t make do with that?

  • drwc

    Yes, debit cards are used everywhere, and the banks like to issue them, because there is a fee to the merchant (debit i believe is not as high as if you use it as a credit) but again, this all gets eventually passed on to the consumers. So, someone still pays and it is NOT the banks…

  • JustanOguy

    What do you expect from a President that’s really a shill for the Big Banksters?

  • bsmi021

    Orange Jean you and all the people who said similar statements are the ones who need to go back to school, these are not normal debit cards and yes if you do not go to a APPROVED location you will be charged a back fee. As for the people who do not believe this or think it is new IT IS NOT, this has been going on for years, it is just getting to be news as the country keeps getting pushed into the hell hole wall street and Washington are pushing it in to. So yes wake up life sucks unless you are rich!!

  • I am no friend of big banks and do all my banking locally, but before we rush to judgement, lets look at the facts:

    Bank cards replaced paper food stamps which cost the taxpayer more to administer, stores more to process, and made dividing them up and selling them on the black market for 50 cents on the dollar more difficult.

    The alternative is to turn this function over to the state who will waste even more taxpayer dollars because they have no profit incentive to run the program as efficiently as possible.

    Those on food stamps tend to pay less in credit card interest, a huge revenue source for banks, because they qualify for less credit. JP Morgan could make a lot more money from these people than if they were better off financially because the average sheeple tends to borrow as much as they possibly can.

  • Obeserver On The Hill

    To find out how the Federal Reserve has destroyed America watch the very excellent and free video below. You will understand more about central banking then 99.99% of the population, including bankers themselves –

    Money Masters – How International Bankers Gained Control of America

    link here –

  • karen

    It’s the same with the prison system a big money making scam!!! And when a person is let out of prison they recieve food stamps. JP morgan and all the other huge banks belong to the elite. JP Morgan payed Obama well to put him in the position he is in now, he is a tool just like bush and all the bushes, they are puppets for the elite. Just like I have said before if you can understand the article called Letter to the Sheeple, Dearest citizien you can see what is happening.

  • Syrin

    This WILL NOT improve. Obamugabe is the single biggest recipient of Wall Street money in US history, and Romney’s biggest contributor is Goldman-Sachs. Both are endorsed by Soros, but not to worry. Gary likes both.

    • Gary2

      Obama I win and Romney I still sort of win.

      Sucks to be a conservative Ha HA

      • DownWithLibs

        Sucks to not know the Truth from fiction and look like a leftist shill on a blog post. Ha Ha!

  • r.bitting

    Put your faith in God, through trusting in Jesus Christ, who paid for your sin on the cross. God LOVES you, and is pleading with you to be saved by the only way a man can be, Christs sacrificial death on the cross. May God bless you with his truth.

    • Sunday


    • DownWithLibs

      Double Amen!


    Anyone who votes for either the democrat wing or the republican wing of the war party can not complain about JP Morgan Chase, Goldman Sachs, Bank of America, etc., etc. Clearly the banks own the war party, both wings of it, and the political elites from Obama on down will do what the banks tell them to do, plain and simple……………….

    Want to get rid of out of control and corrupt corporate and banking power? Get rid of the democrats and the republicans. Otherwise, hit your rocking chairs and start knitting blankets.

  • another Jay

    Gary, are you for real? I have been reading your comments for a while now, and it is hard to believe that someone could be so willfully ignorant.


      another Jay,

      Granted Gary2 is an Obamabot, but he is right on this one. The welfare state in terms of the poor centers around the fact that there are not enough jobs that pay sufficient wages for people to support themselves. The corporate welfare state is not a necessity. It can be dispensed with tomorrow and the empire would not be any worse for ware.

    • Gary2

      I am for real and stand by everuything I post. They are all verifable facts that you could google for yourself to see that I am correct.

    • xander cross

      Name calling I see. Typical.

  • mondobeyondo

    We’re all living in a “Banksta’s Paradise”, as Coolio would say.

    The banks are running the country, not Obama or Congress. They’ve both been bought and sold. And the system is set up to keep the people enslaved.

    • bongstar

      right on mondo! his is the real truth! every one else is still falling hook line and sinker for the blame game that these partys play, while they have knowingly sold out the wealth of america in the most treasonous acts of all time. Any one who thinks any of these crooks will fix it are indocrinated beyond. though i dissagree with the Fabian socialists the only thing i belive that they had right was to change our future slowly through legislation. seeing that through out history violent revoltutions rarley end well. though it would be a long and proably impossible fight If we could just get legal tender laws repeald and allow othere forms of currency to compete ( including gold and silver) aginst the feds funny money. through this proccess and natural free market laws the federal reserve would self implode. this would of course just be a start.

  • lisa

    The EDD (unemployment Dept.)in California is issuing debit cards from Bank of America (rather than checks)so I am sure they are making billions as well.

  • The foodstamp-system is like the economic future, the NWO loves it. Take your ID-chip in your forehead or your hand. Ever heard about the number 666. But the NWO will be a LOT better (the devil is not dumb) than many would think. Therefore only “terrorist christians” will be thrown into FEMA camps because they belive in “dangerous fairytales”. The FEMA camps were built for christians only, sad but true.

  • no property taxes



  • Morella

    The comment by Craig is correct, except his assumption that the US (and all countries for that matter) are in a recession. Recessions don’t last this long.

  • kenny

    And how are the food stamps paid for?

    Borrowed money, ie government bonds which are sold through JP Morgan and yes they take their cut, billions per year.

  • bobbobbob

    the professional terminators rrr coming home. but there so stupid so they hate demmoccratts and they love rebuplicanterrorissts. what racist jerks they rrrr

  • Calirose

    Prepared Pastor is right on. The only one who is looking at the big picture. Business is business and someone would be doing something (and making money) to handle the food stamps delivery system – someway.

  • Barb Wickwire

    Jeb Bush was in office when the Florida Families and Children services that administer Medicaid and Food Stamps outsourced call centers to India. Nice job, Mr. Bush. There were loads and loads of Floridians who could have used those very same jobs.

  • I really think everyone will get a kick out of this article… it is most certainly true, but this is how the poor see it, and with more comedy!?!

  • Right Way

    So, the banks should be required to provide this business service for “Free” and not pay the people who do the work? Maybe we could have “volunteers” run this program!
    Maybe, there should be Federal “wage and price controls” to make sure the greedy banks do not charge more than the government allows for all services and labor costs, benefits and retirement costs. Gives new meaning to “minimum wages” as a concept!
    Wow! That is a great idea! Now teachers, firefighters, local police, all government workers and public union members cannot make more than the average working private sector guy or gal and everybody will be “equal” and we will finally have “fair” wages for all people regardless of sex, race, creed or age!
    Take a look at the now defunct USSR Constitution – all these areas are covered and the “utopia” failed under its own weight -not to mention total government control requires control by armed enforcers (members of the Communist Party with guns) to make sure that all these wonderful “free” government sponsored “rights” are enforced on a daily basis! However, the people are not allowed to own guns.
    Wake up America- Unchecked socialism, communism, and liberalism leads to total elimination of freedom, increased poverty, anarchy, the ultimate loss of life, liberty and the pursuit of happiness.
    This is not hard to understand if you bother to read any history and get informed about simple, basic economics and capitalism vs. all other “isms.” Both political parties are to blame – but the voters (We The People) are most at fault for not being educated enough to understand the importance of our Constitution, the rule of law, and economics.

  • Stress Relieved

    I worked for Bear Stearns then J P Morgan bought us out. My twelfth anniversary would have been coming up soon. They fired me last.month making false allegations. Believe me, I have proof. I am so thankful I am not there any more. What they did to me was nothing compared to what they did to others. It was appalling! I’m starting my own company now. I couldn’t be happier or less stressed. I will never do business with that company.

Finca Bayano

Panama Relocation Tours



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