It may not happen this month, or even this year, but food stamp riots are coming to America. In fact, we got a small preview of the coming food stamp riots this past weekend when a “temporary system failure” caused food stamp cards to stop working in 17 U.S. states. Within hours, there were “mini-riots” at Wal-Marts and other retailers that rely heavily on food stamp users. So what would happen if food stamp benefits were cut off or reduced for an extended period of time? As you will see below, if Congress had not pushed through a “deal”, the USDA would have started cutting off food stamp benefits on November 1st. Considering the fact that 47 million Americans are on food stamps and more than 100 million Americans are enrolled in at least one welfare program run by the federal government, that could have sparked massive rioting. So the good news is that the coming food stamp riots will probably not happen in November. The bad news is that the “deal” in Congress only delays the political fighting until after Christmas. In just a few months we will be dealing with a potential “government shutdown” and a debt ceiling deadline once again.
Most Americans have no idea what almost just happened. According to Reuters, the state of North Carolina had already cut off some welfare benefits for the month of November…
North Carolina has become the first state to cut off welfare benefits to poor residents in the wake of the partial federal government shutdown, ordering a halt to processing November applications until a deal is reached to end the federal standstill.
More than 20,000 people – most of them children – receive monthly benefits aimed at helping them buy food and other basic supplies through North Carolina’s welfare program, called Work First, which is fully funded by the federal government. Recipients must reapply each month.
And as Mac Slavo recently detailed, the USDA was already planning to cut off food stamp assistance to millions of Americans on November 1st…
We say next month because the USDA, which oversees the Supplemental Nutritional Assistance Program (SNAP), has just issued an order to SNAP agency directors calling for their respective States to implement an emergency contingency program because of government funding issues. In a letter obtained by the Crossroads Urban Center food pantry, the USDA is directing state agencies to, “delay their November issuance files and delay transmission to State Electronic Benefit Transfer (EBT) vendors until further notice.”
What this means is that should Congress fail to increase the debt ceiling this week, come November there will literally be millions of people in the United States who will have exactly zero dollars transferred to their EBT cards.
What will happen to the nearly 50 million people who depend on these benefits to survive?
In Utah, Fox News 13 in Salt Lake City reported that a local provider recently received a letter from the USDA sticking to the November 1 cut-off date.
“This is going to create a huge hardship for the people we serve here in our food pantry,” Bill Tibbits, Associate Director at Crossroads Urban Center, told Fox News 13.
“What this means [is] if there’s not a deal, if Congress doesn’t reach a deal to get federal government back up and running, in Utah about 100,000 families won’t get food stamp benefit,” added Tibbits.
The USDA letter says in part, “in the interest of preserving maximum flexibility, we are directing states to hold their November issuance files and delay transmission to state electronic benefit transfer vendors until further notice.”
So what would have happened if tens of millions of Americans suddenly had their food stamp benefits cut off without warning?
Well, what happened last weekend can give us a few clues. Just check out what happened at one Wal-Mart in Mississippi…
Customers staged a disturbance then walked out of a Mississippi Walmart store with groceries that hadn’t been paid for Saturday night after a computer glitch left them unable to use their food stamp cards.
People in 17 states found themselves unable to buy groceries with their Supplemental Nutrition Assistance Program cards after a routine check by vendor Xerox Corp. resulted in a temporary system failure.
Shortly after the mini-riot, managers decided to temporarily close the store, citing customer safety.
Due to this technical glitch, many parents were left wondering how they were going to feed their families. If this is the kind of anger that is unleashed over a single failed trip to the grocery store, what would we see if this kind of thing went on for an extended period of time?
At some Wal-Mart stores down in Louisiana, EBT cards were not showing any limits on Saturday night, and within two hours many store shelves in the grocery section were completely cleared of merchandise…
Shelves in Walmart stores in Springhill and Mansfield, LA were reportedly cleared Saturday night, when the stores allowed purchases on EBT cards even though they were not showing limits.
The chaos that followed ultimately required intervention from local police, and left behind numerous carts filled to overflowing, apparently abandoned when the glitch-spurred shopping frenzy ended.
Springhill Police Chief Will Lynd confirms they were called in to help the employees at Walmart because there were so many people clearing off the shelves. He says Walmart was so packed, “It was worse than any black Friday” that he’s ever seen.
Sadly, this was only a very small preview of the massive food stamp riots that are eventually coming to America. I like how Mike Adams explained what we are likely to see in the future…
Why does any of this matter? Because this is exactly the same way these people will behave when the federal government goes into default and nearly 50 million EBT cards stop working nationwide.
Fifty million. Consider that for a moment. Most of those 50 million people live in high-density cities. Many are proud owners of Obama phones, Obama food stamps, Obama unemployment checks and Obama subsidized housing. They have absolutely no clue that the government upon which they wholly depend to put food on the table is teetering on the verge of permanent collapse. (Seriously, they cannot conceive of the idea of government “running out of money” because they do not understand where money comes from.) Because of this distorted belief, they do not prepare for any future events other than more Obama handouts. Their entire “preparedness” plan is to vote for Democrats, because that’s who they know will give them the most handouts. And they will always win the popular vote, too, because any politician promising to restore responsible fiscal spending to the government by cutting programs will be viciously accused of being “mean” or involved in “hating poor people.” So the government handouts will only ratchet higher and higher, ensnaring more and more people, until the entire system is unsustainable and collapses under its own weight.
When that system of dependence fails, those who depend on it will panic in mere hours. As proof of this, consider the fact that this mass looting of Wal-Mart stores happened in less than three hours after the Saturday EBT card glitch struck. Police had to be called in to prevent the situation from getting completely out of control, and it was offline for only part of one day.
Now imagine what will happen when EBT cards go offline for 24, 48 or even 72 hours. And imagine it happening in every U.S. city simultaneously.
Of course not all Americans would go wild when food stamp benefits are cut off.
Other Americans express their desperation in other ways. According to Bloomberg, an increasing number of people are starting to sell hair, breast milk and their own eggs in a desperate attempt to make ends meet…
Hair, breast milk and eggs are doubling as automated teller machines for some cash-strapped Americans such as April Hare.
Out of work for more than two years and facing eviction from her home, Hare recalled Louisa May Alcott’s 19th-century novel and took to her computer.
“I was just trying to find ways to make money, and I remembered Jo from ‘Little Women,’ and she sold her hair,” the 35-year-old from Atlanta said. “I’ve always had lots of hair, but this is the first time I’ve actually had the idea to sell it because I’m in a really tight jam right now.”
The mother of two posted pictures of her 18-inch auburn mane on www.buyandsellhair.com, asking at least $1,000 and receiving responses within hours. Hare, who also considered selling her breast milk, joins others exploring unconventional ways to make ends meet as the four-year-old economic expansion struggles to invigorate the labor market and stimulate incomes.
We have moved into a time when things are becoming increasingly unstable and when people are becoming increasingly desperate.
In an attempt to keep order, the authorities will become increasingly forceful in the years ahead. At this point, many law enforcement officers already believe that there is very little that they cannot do to exert their “authority” over the rest of us. Just check out video of a drunk off-duty police officer “arresting” a woman that refused to go out on a date with him right here. Sadly, this type of behavior is becoming way too common these days.
And it looks like major financial institutions are getting ready for the chaos that is eventually coming as well. In fact, according to an article by Paul Joseph Watson, Chase Bank is now placing a limit on cash withdrawals and is banning business customers from sending wire transfers out of the country…
Chase Bank has moved to limit cash withdrawals while banning business customers from sending international wire transfers from November 17 onwards, prompting speculation that the bank is preparing for a looming financial crisis in the United States by imposing capital controls.
Numerous business customers with Chase BusinessSelect Checking and Chase BusinessClassic accounts have received letters over the past week informing them that cash activity (both deposits and withdrawals) will be limited to a $50,000 total per statement cycle from November 17 onwards.
Fortunately, the chaos that would have been unleashed if Congress had not made a deal has now been delayed for a few months.
But by kicking the can down the road, our politicians continue to make our long-term problems even worse. Either we are going to have tremendous pain now, or we are going to have even worse pain later. Peter Schiff explained the choice that we are facing this way…
If Republicans were to inexplicably prevail, and the federal government were to cut spending so that its expenditures matched its tax revenues (a truly radical idea) the country’s financial mess would be laid bare. The government would have to weigh the relative costs and benefits of making interest payments on Treasury debt (primarily to foreign creditors) or to trim entitlements promised to U.S. citizens. But those are choices we will have to make sooner or later anyway. In fact we should have dealt with these issues years ago. But generations of mechanistic debt ceiling increases have allowed us to perpetually kick the can down the road. What could possibly be gained by doing it again, particularly if it is done with no commitment to change course?
The Democrats’ argument that America needs to pay its bills is just hollow rhetoric. Paying off one’s Visa bill with a new and bigger MasterCard bill can’t be considered a legitimate payment of debt. At best it is a transfer. But in the government’s case, it doesn’t even qualify as that. Treasury debt is primarily bought by the Fed, foreign central banks, and major financial institutions. None of that will change with a debt ceiling increase. We will just go to the same people for greater quantities. So it’s like paying off your Visa card with a bigger Visa card.
We are living on borrowed time that has been purchased by stealing money from future generations.
We are literally destroying the future in order to make the present more palatable.
But whether it is this year, or next year or the year after that, at some point we are going to experience the pain that results from decades of incredibly foolish decisions.
The world is heading into a horrific economic nightmare, and an inordinate amount of the suffering is going to fall on innocent children. If you want to get an idea of what America is going to look like in the not too distant future, just check out what is happening in Greece. At this point, Greece is experiencing a full-blown economic depression. As I have written about previously, the unemployment rate in Greece has now risen to 27 percent, which is much higher than the peak unemployment rate that the U.S. economy experienced during the Great Depression of the 1930s. And as you will read about below, child hunger is absolutely exploding in Greece right now. Some families are literally trying to survive on pasta and ketchup. But don’t think for a moment that it can’t happen here. Sadly, the truth is that child hunger is already rising very rapidly in our poverty-stricken cities. Never before have we had so many Americans unable to take care of themselves. Food stamp enrollment and child homelessness have soared to brand new all-time records, and there are actually thousands of Americans that are so poor that they live in tunnels underneath our cities. But for millions of other Americans, the suffering is not quite so dramatic. Instead, they just watch their hopes and their dreams slowly slip away as they struggle to find a way to make it from month to month. There are millions of parents that lead lives that are filled with constant stress and anxiety as they try to figure out how to provide the basics for their children. How do you tell a child that you can’t give them any dinner even though you have been trying as hard as you can? What many families go through on a regular basis is absolutely heartbreaking. Unfortunately, more poor families slip through the cracks with each passing day, and these are supposedly times in which we are experiencing an “economic recovery”. So what are things going to look like when the next major economic downturn strikes?
A recent New York Times article detailed the horrifying child hunger that we are witnessing in Greece right now. At some schools there are reports of children actually begging for food from their classmates…
As an elementary school principal, Leonidas Nikas is used to seeing children play, laugh and dream about the future. But recently he has seen something altogether different, something he thought was impossible in Greece: children picking through school trash cans for food; needy youngsters asking playmates for leftovers; and an 11-year-old boy, Pantelis Petrakis, bent over with hunger pains.
“He had eaten almost nothing at home,” Mr. Nikas said, sitting in his cramped school office near the port of Piraeus, a working-class suburb of Athens, as the sound of a jump rope skittered across the playground. He confronted Pantelis’s parents, who were ashamed and embarrassed but admitted that they had not been able to find work for months. Their savings were gone, and they were living on rations of pasta and ketchup.
Could you imagine that happening to your children or your grandchildren?
Don’t think that it can’t happen. Just a few years ago the Greek middle class was vibrant and thriving.
And we are starting to see hunger explode in other European countries as well. For example, in the UK the number of people receiving emergency food rations has increased by 170 percent over the past year.
This is one of the reasons why I get upset when people say that “things are getting better”. Yes, the stock market has been setting record highs lately, but things are most definitely not getting better.
Even during this false bubble of debt-fueled economic stability that we are enjoying right now, we continue to see hunger and poverty rise dramatically in America.
Since Barack Obama has been president, the number of Americans on food stamps has grown from 32 million to more than 47 million.
Will we all be on food stamps eventually?
Will we all become dependent on the government for our survival at some point?
According to the Boston Herald, even Tamerlan Tsarnaev was receiving government welfare benefits…
Marathon bombings mastermind Tamerlan Tsarnaev was living on taxpayer-funded state welfare benefits even as he was delving deep into the world of radical anti-American Islamism, the Herald has learned.
State officials confirmed last night that Tsarnaev, slain in a raging gun battle with police last Friday, was receiving benefits along with his wife, Katherine Russell Tsarnaev, and their 3-year-old daughter. The state’s Executive Office of Health and Human Services said those benefits ended in 2012 when the couple stopped meeting income eligibility limits.
Isn’t that crazy?
And yes, there are some people out there that are abusing the system. In fact, the cost of food stamp fraud has risen sharply to approximately $750 million in recent years.
But most of the people on these programs really need the help. Thanks to our incredibly foolish economic policies, there are not enough good jobs for everyone and there never will be again. The percentage of Americans that are unable to take care of themselves is going to continue to rise, and the suffering that we are witnessing right now is going to get much, much worse.
Not that things aren’t really, really bad already. Here are some signs that child hunger in America has already started to explode…
#1 Today, approximately 17 million children in the United States are facing food insecurity. In other words, that means that “one in four children in the country is living without consistent access to enough nutritious food to live a healthy life.”
#2 We are told that we live in the “wealthiest nation” on the planet, and yet more than one out of every four children in the United States is enrolled in the food stamp program.
Unfortunately, most of the time statistics don’t really tell the whole story. Numbers alone cannot really communicate the soul-crushing despair that millions of American families are enduring on a daily basis at this point.
How can numbers communicate the pain that a child feels when her grandmother does not eat because there is not enough food for everyone in the family? But this is what some families in America actually go through because there is not enough money…
Vanyshia tells about the sacrifices her Grandmother makes so that she and her siblings can eat. “Sometimes my Grandma can’t even eat because she has to feed me and my brother and sister. Sometimes I don’t eat as much as I want to because I leave some for my Grandma because I don’t want her to sit there and starve. Sometimes she doesn’t have enough money to buy food, so she has to go to the bank and borrow money. It makes me feel sad. I don’t want her to be hungry. I just feel sad sometimes,” says Vanyshia.
Things can be particularly tough when you are a single parent. The BBC recently profiled a single mother that is struggling to raise two young children in Iowa…
“We don’t get three meals a day like breakfast, lunch and then dinner,” says Kaylie. “When I feel hungry I feel sad and droopy.”
Kaylie and Tyler live with their mother Barbara, who used to work in a factory. After losing her job, she was entitled to unemployment benefit and food stamps – this comes to $1,480 (£974) a month.
But they were no longer able to afford to live in their house, which along with bills cost $1,326 (£873) a month, leaving little for food or petrol.
Kaylie supplemented their income by collecting cans along the railway track near their old home – earning between two and five cents per can.
For more examples like this one, I encourage everyone to go watch a recent BBC documentary entitled “America’s Poor Kids” that you can see right here.
I wonder why we don’t see more stuff like this on the mainstream news in this country?
Could it be that the mainstream media does not want to admit how bad things have really gotten?
All of this is also a reminder that we need to be generous to those in need. Times are going to get much, much harder than this, and we are all going to need one another.
So do you have any stories of poverty or child hunger from your area of the country to share? Please feel free to share your thoughts by posting a comment below…
The mainstream media continues to insist that the economy is “getting better”, but the poverty numbers for children and young people just continue to explode. For example, did you know that the poverty rate for families with a head of household under the age of 30 is a whopping 37 percent? Children and young people sure didn’t cause our recent economic downturn, but they sure are getting hit the hardest by it. According to the U.S. Department of Education, for the first time ever more than a million U.S. public school students are homeless. That seems like an impossible number, but it is actually true. How in the world could the “wealthiest nation on earth” get to the point where more than a million children can’t count on a warm bed to sleep in at night? Sadly, a huge number of American children can’t count on a warm dinner either. About a fourth of them are enrolled in the food stamp program. What do you do if you are a parent in that kind of situation? How do you explain to your kids that you can’t afford a nice home like everybody else has or that you can’t afford to go to the grocery store and buy them some dinner?
Young people are experiencing very rough times right now as well. If you are under the age of 30, it is really, really difficult to get a job in America today. The competition for the few decent jobs that seem to be available is absolutely crazy. Unemployment among young people is at a level that we have not seen since World War II, and this is causing major problems.
Even if you do have a college degree, there is no guarantee that you will be able to get any type of a job. In fact, more than half of all college graduates under the age of 25 were either unemployed or underemployed last year. There are millions of very talented college graduates that are waiting tables, making sandwiches or stocking shelves down at the local branch of a global retail conglomerate. Meanwhile, they are saddled with record breaking amounts of student loan debt.
This is easily the worst economic environment that we have seen for young people since the Great Depression of the 1930s. The number of good jobs continues to decline. Many young people are faced with the choice of taking a bad job or having no job at all.
If you are under 30 in America today, you better hope that you come from a wealthy family or that you have some really good connections, because otherwise the future looks pretty bleak for you.
The following are 20 signs that the U.S. poverty explosion is hitting children and young people the hardest…
1. If you can believe it, a higher percentage of children is living in poverty in America today than was the case back in 1975.
9. Young adult employment is now at the lowest level that we have seen since World War II.
10. In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.
11. Families that have a head of household under the age of 30 have a poverty rate of 37 percent.
12. Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began.
13. Since the year 2000, incomes for U.S. households led by someone between the ages of 25 and 34 have fallen by about 12 percent after you account for inflation.
14. In 1984, the median net worth of households led by someone 65 or older was 10 times larger than the median net worth of households led by someone 35 or younger. Today, the median net worth of households led by someone 65 or older is 47 times larger than the median net worth of households led by someone 35 or younger.
15. During 2011, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed.
16. Many young people are finding that they cannot afford to get married these days. Sadly, an all-time low 44.2 percent of all Americans between the ages of 25 and 34 are married right now.
17. Right now, approximately 53 percent of all Americans in the 18 to 24 age group are living at home.
18. The number of Americans in the 25 to 34 age group that live with their parents has grown by 25 percent since 2007.
19. One survey discovered that 85 percent of all college seniors plan on moving back in with their parents after graduation.
20. Overall, approximately 25 million American adults are living with their parents in the United States right now according to Time Magazine.
After reading all of those statistics, do you still doubt that America is in decline? If so, you can find some more shocking statistics right here.
The truth is that it should be painfully evident to anyone with a brain that our economy is not working correctly anymore. We have lots of talented people, but there are not nearly enough jobs and a lot of those very talented people end up sleeping out in the streets.
A recent New York Times article told the story of a young man named Duane Taylor. Sadly, there are way too many young people out there today that are experiencing the same kind of things that he is…
Duane Taylor was studying the humanities in community college and living in his own place when he lost his job in a round of layoffs. Then he found, and lost, a second job. And a third.
Now, with what he calls “lowered standards” and a tenuous new position at a Jack in the Box restaurant, Mr. Taylor, 24, does not make enough to rent an apartment or share one. He sleeps on a mat in a homeless shelter, except when his sister lets him crash on her couch.
“At any time I could lose my job, my security,” said Mr. Taylor, explaining how he was always the last hired and the first fired. “I’d like to be able to support myself. That’s my only goal.”
There are millions upon millions of young people in America today that feel totally lost because they cannot find their places in the world.
They are angry, frustrated, depressed, desperate and disillusioned. They felt like they did everything that the system told them to do, and now they feel like the system is failing them.
An unemployed 2010 graduate of the University of Florida named Lance Fuller expresses similar sentiments on his blog entitled “Voices Of A Lost Generation“…
They are the countless young men and women eager for an opportunity but have found few, if any. They have desirable skills, are highly educated, and are more than willing to work.
Sadly, crippled by college debt and graduated into a struggling economy, they stand little chance to find gainful employment in their chosen fields and take temporary jobs they are overqualified for. They lie waiting for the dream job they went to school for — but it probably doesn’t exist.
My name is Lance and sadly, I share in this story. Like my twentysomething peers, I am one of the thousands of faces of America’s Generation U — Unfortunate, Unlucky, and Unemployed.
I am fortunate that I have never been without money to buy food and have never had to spend a night on the street. But tonight millions upon millions of Americans under the age of 30 will be faced with those kinds of circumstances.
Please say a prayer for them. They didn’t cause the economic mess that we are in, but they are certainly paying the price for the mistakes that were made.
Does anyone out there have a similar story to the ones that were shared in this article? If so, please feel free to share it below. Perhaps your story will encourage someone else out there who is going through a really hard time right now.
All over America there are millions of people that will be missing meals and going hungry this holiday season. Even as much of the country indulges in the yearly ritual of unbridled consumerism that we refer to as “the holiday season”, more families in the United States than ever before will be dealing with not having enough food to eat. Food stamp use is at an all-time high. Demand at food banks is at an all-time high. They keep telling us that we are in an “economic recovery” and yet the middle class continues to shrink and the number of Americans living in poverty just continues to grow. We are witnessing unprecedented hunger in America, and this especially seems tragic during the holidays. Much of the country is partying as if the good times will never stop, but families that are living from one meal to the next are facing a completely different reality. How do you tell your children that there isn’t going to be any food to eat for dinner? How do you explain to them that other families have plenty to eat but you don’t? Sadly, many food banks are overstretched at this point. All over the nation, food pantries have actually had to turn people away because of the overwhelming demand. And more Americans used food stamps to buy their Thanksgiving dinners this year than ever before. This is a problem that is not going away any time soon, and when the next major economic downturn strikes the problem of hunger in America is going to get even worse.
For many Americans, hunger has become a way of life. Families that don’t have enough money are often faced with some absolutely heartbreaking choices. Just check out what one Maine official that works with the Emergency Food Assistance Program recently had to say…
“One in six people in Maine don’t know where their next meal is coming from, or skip a meal so their kids can eat, or have to choose between paying for prescriptions and food, or fuel for your car and food,” Hall said. “What’s amazing is that food is always the first thing to go from your budget. It’s staggering, the choices people have to make.”
Food banks all over the country try their best to do what they can, especially during the holidays, but it is often not enough. In fact, some food banks ran out of turkeys well in advance of Thanksgiving this year…
Three days in advance of Thanksgiving, the Pear Street Cupboard and Café in Framingham, Massachusetts, is out of turkeys. According to organizers, “requests for help are up 400 percent over last year.”
But it isn’t just during the holidays that food banks are having problems keeping up with demand. The truth is that many food banks find themselves out of food and having to turn away hungry families all throughout the year. The following is from a recent Reuters article…
Overall, food pantries and soup kitchens reported a 5 percent spike in demand in 2012, according to the survey. More than half of providers said they were forced to turn away clients, reduce portion sizes, or limit their hours.
In Staten Island, all of the agencies that respond to hunger reported not having enough food to meet demand, while in the Bronx that was true for 80 percent of agencies. In Queens and Brooklyn, more than 60 percent of agencies did not have enough food to meet the needs of the populations they serve.
If you are able, please support your local food bank. The needs are great and they are only going to get greater.
The following are 20 facts about hunger in America that will blow your mind…
#1 According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
#5 According to new numbers that were just released by the U.S. Census Bureau, the number of Americans living in poverty increased to a new all-time record high of 49.7 million last year.
#6 The number of Americans living in poverty has increased by about 6 million over the past four years.
#7 Today, about one out of every four workers in the United States brings home wages that are at or below the federal poverty level.
#8 According to the U.S. Census Bureau, the poverty rate for children living in the United States is about 22 percent.
#9 Overall, approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.
#10 In the United States today, close to 100 million Americans are considered to be either “poor” or “near poor”.
#11 One university study estimates that child poverty costs the U.S. economy 500 billion dollars each year.
#12 Households that are led by a single mother have a 31.6 percent poverty rate.
#13 In 2010, 42 percent of all single mothers in the United States were on food stamps.
#14 According to the National Center for Children in Poverty, 36.4 percent of all children in Philadelphia are living in poverty, 40.1 percent of all children in Atlanta are living in poverty, 52.6 percent of all children in Cleveland are living in poverty and 53.6 percent of all children in Detroit are living in poverty.
#15 Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.
#16 Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began.
#19 Right now, more than 100 million Americans are enrolled in at least one welfare program run by the federal government. And that does not even count Social Security or Medicare.
#20 According to the Natural Resources Defense Council, approximately 40 percent of all food in America “is routinely thrown away by consumers at home, discarded or unserved at restaurants or left unharvested on farms.”
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.
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.
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.