Foodstamps Soar By Most In 16 Months: Over 1 Million Americans Enter Poverty In Last Two Months

Tyler Durden's picture




 

And we thought last month's delayed foodstamp data was bad. The just reported foodstamp number for September was a doozy, with 607,544 new Americans becoming eligible for foodstamps, as a record 47.7 million Americans are now living in poverty at least according to the USDA. The monthly increase was the highest since May 2011, and with August's 421K new impoverished America, over 1 million Americans made the EBT card their new best friend. It is unclear just which atmospheric phenomenon will get the blame for this unprecedented surge in poverty, which comes at a time when the pre-election economic data euphoria was adamant that the US economy was on an escape velocity to utopia. Instead what we do know is that in August and September, over three times as many foodstamp recipients were add to the economy as jobs (324,000). We also know that with the imminent impact of Sandy, which will send foodstamp recipients soaring, it is now looking quite possible that the US may end 2012 with just over a mindboggling 50 million Americans living in absolute poverty and collecting the $134.29 average monthly benefit per person, instead of working. Welcome to the recovery indeed.

Individual Americans on foodstamps:

Foodstamps at the household level rose to a record 24 million:

Aggregating foodstamp, disability and nonfarm payrolls data shows that since the start of the Depression in December 2007, 21.8 million Americans have shifted more or less permanently to the entitlement line, even as the US still has to generate 4.4 million jobs just to break even.

And the same shown on a monthly basis:

Source: SNAP

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Mon, 12/10/2012 - 09:23 | 3048265 GMadScientist
GMadScientist's picture

What? Ayn Rand was lying? We are actually dependent on each other?

Doh. There goes your whole conservative thesis.

Sun, 12/09/2012 - 23:45 | 3047803 williambanzai7
williambanzai7's picture

I have been reading the MSM stories about GE and Apple repatriating factory jobs to the US. The most recent being in Forbes.

What is most interesting is the apparent revelation that in many respects it makes no sense to manufacture many products in China.

The China manufacturing meme was apparently a fad accelerated by the short term share value enhancement sought by Wall Street and C Suite management with comp tied to short term share performance.

As a matter of long term strategic thinking, moving jobs to China en masse turns out to have been yet another example of economic strip mining by the powers that be.

Now, ask yourselves, what the fuck is an unemployed middle aged factory worker supposed to do? What business is he or she supposed to start? A hardware store, a dry goods shop, a newspaper stand?

Who designed the economy that converted millions of productive people to realtors, mortgage brokers and Walmart guards?

Certainly not the people who are forced to suffer the humiliation of being modern paupers because they find themselves unemployed.

Now the people who did design our broken factory are complaining the loudest about the safety net.

Let them dismantle the net and see what happens next. Something the Chinese worry about all the time.

Sun, 12/09/2012 - 23:45 | 3047814 Yen Cross
Yen Cross's picture

 Let's look at the real reason jobs might be repatriated/  Lack of demand comes to mind.   Getting fingered Eg;( intellectual property theft) by the Chinese comes to mind/

Sun, 12/09/2012 - 23:50 | 3047825 williambanzai7
williambanzai7's picture

Energy costs have trended upwards. Is that a surprise.

It makes more sense to have design and marketing teams in close proximity to production teams, all speaking the same language.

Time to point of sale is shortened from 4 weeks to thirty minutes.

IP management.

Upward trending Chinese labor cost.

Sun, 12/09/2012 - 23:54 | 3047838 Yen Cross
Yen Cross's picture

And you say you aren't a trader? Passive?

Sun, 12/09/2012 - 23:57 | 3047845 williambanzai7
williambanzai7's picture

There is much more to trading than fundamentals, as we now know.

Mon, 12/10/2012 - 00:36 | 3047888 Yen Cross
Yen Cross's picture

You never cease to amaze me Mr. William Banzai-7. Technically speaking/ that is exactly what I'm trading in these thin markets.

 Volatility is your friend, if you do your homework :-)

Mon, 12/10/2012 - 00:39 | 3047920 williambanzai7
williambanzai7's picture

If I were trading on volatility, would I have time to do artwork?

Mon, 12/10/2012 - 00:58 | 3047957 Yen Cross
Yen Cross's picture

A brillant artist you are. The "Vatican" should commission you... You are that good/ You have the ability to insert ideas in-to visual art in ways that remind me of some other very special proletarians/

Mon, 12/10/2012 - 01:01 | 3047966 williambanzai7
williambanzai7's picture

Now if I could only find a way to remote taze Bernanke, Geithner and Blankfein everytime someone looks at one of my pictures.

Mon, 12/10/2012 - 02:12 | 3047994 Yen Cross
Yen Cross's picture

 Never mess with an Artist/

Mon, 12/10/2012 - 09:33 | 3048281 GMadScientist
GMadScientist's picture

Better to inspire others on to their own tazing adventures.

http://www.youtube.com/watch?v=FY8GGLI4Sdg

Mon, 12/10/2012 - 01:19 | 3047987 Anusocracy
Anusocracy's picture

"It makes more sense to have design and marketing teams in close proximity to production teams, all speaking the same language."

You forgot research and engineering.

China is producing ten times as many scientists and engineers as the US.  The US undoubtedly beats China in lawyers and social workers, though.

Sun, 12/09/2012 - 23:53 | 3047837 dark pools of soros
dark pools of soros's picture

Globalization and bringing women in the workforce both did their effect.  They can bring the jobs back here now since they already widen the wage gap between worker to executives over the last 40 years. 

As long as they push healthcare onto the people and not a worker benefit for labor level jobs they will bring them back. 

 

Mon, 12/10/2012 - 00:01 | 3047852 Dr. Engali
Dr. Engali's picture

First of all they aren't going to bring any meaningful jobs back. Sure they will bring a few thousand back for public relations to make it look like they are taking meaningful action, but I will bet you dimes for dollars ( not silver dimes) that for every one job they create here, they will create ten in another third world country.

Mon, 12/10/2012 - 00:13 | 3047878 williambanzai7
williambanzai7's picture

It doesn't make sense to bring every job back of course.

But the rubric became send all jobs to China.

Perhaps the next iteration will be why aren't you in Mombasa?

Mon, 12/10/2012 - 00:42 | 3047930 Dr. Engali
Dr. Engali's picture

No it doesn't make sense to bring them all back, but when I here GE is going to bring 5,000 back over so many years it makes sick that people buy into that crap when you consider the fact that GE buys up companies to offset the jobs they are shipping overseas. This keeps their number of domestic employees look stable when in actuality they moving jobs overseas as fast as they evere were.

Mon, 12/10/2012 - 00:58 | 3047959 williambanzai7
williambanzai7's picture

Yes, GE is one big net job exporting juggernaut. And now the MSM has been paid to publicize the job importing phenomena.

Nevertheless, I am sure that corporate America went way overboard on job exporting, simply because the idea of operating in China became such a Wall Street sponsored fad.

How much do you think it costs to manage quality in the China supply chain? It certainly is supporting the karaoke entertainment industry in Shenzen.

Mon, 12/10/2012 - 01:03 | 3047970 infinity8
infinity8's picture

ISO-what?!

Mon, 12/10/2012 - 01:05 | 3047974 williambanzai7
williambanzai7's picture

You can get that in the foot massage parlors.

Mon, 12/10/2012 - 01:09 | 3047977 infinity8
infinity8's picture

They're massaging feet to ISO standards? That's news to me.

 

*edit: not defending ISO

Mon, 12/10/2012 - 01:34 | 3048002 Mr Pink
Mr Pink's picture

ISO oorrrrnnnnyyyyy

Mon, 12/10/2012 - 01:46 | 3048006 infinity8
infinity8's picture

Thank Bejesus somebody got it.

and a lot of these fags don't know what ISO even is...

Mon, 12/10/2012 - 10:20 | 3048363 Vendetta
Vendetta's picture

The math for the long term financial viability of the US in a lets-outsource-all-wealth-production-to-slave-wage-labor-markets meme has never stood up to unbiased scrutiny.  As fond the gov is with a massive and technologically advanced military and the ever-loosening export control of its development, it takes a strong broader manufacturing based economy to simply sustain it.  Aside from the simple fact that no one can point to a 'service based' economic model employed by some nation that ever thrived over the long term in all of history. 

 

 

 

 

Mon, 12/10/2012 - 00:46 | 3047925 newengland
newengland's picture

Dr Engali,

I agree. Wall St owns Washington. It is a matter of crowd control, keep the sheeple in a quiet state. 

The USA will only save itself when people who live in the USA buy local, even if it costs more to employ an American.

The Republic is an expensive virtue.

Sin is a cheap hell, as experienced by dollar workers sleeping on factory floors in most of the world.

The Republic can make good things at prices neighbors can afford if we stay close to home. After all, the USA is a huge market that can make, buy and sell here.

There is still more genuine community spirit and safety and prosperity in the USA than most places in the world. But the clock is ticking. Time is a fierce task master. We must stay close to home.

Mon, 12/10/2012 - 00:51 | 3047944 Dr. Engali
Dr. Engali's picture

I agree it's people are going to have to support the local community , but I don't think that will happen until there has been a big reset. Since 2008 I decided that I was going to support the local businesses and shun the big box stores .The problem is thath they can't compete on pricing. Now I am blessed where I can afford to pay a bit more so I do, but not everybody has the same capabilities so the big box stores can crush the local merchant. Until there is a reset we will unfortunately continue down this path.

Mon, 12/10/2012 - 00:53 | 3047950 williambanzai7
williambanzai7's picture

Evidently, food stamps and "entitlements" are embedded in the box store business model.

Mon, 12/10/2012 - 08:18 | 3048187 DavosSherman
DavosSherman's picture

+1 Willam.  The EBT buttons on the credit card machines, and this ZH article from 2010:

Stunning admission by none other than the CEO of Walmart on what modern day bread lines look like.

I don't need to tell you that our customer remains challenged…You need not go farther than one of our stores on midnight at the end of the month. And it's real interesting to watch, about 11 p.m. customers start to come in and shop, fill their grocery basket with basic items – baby formula, milk, bread, eggs – and continue to shop and mill about the store until midnight when government electronic benefits cards get activated, and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher.

Talk about shopping only for necessities. The mid-night trip for baby formula says it all.

 

And we all know that Jamie Boy's crew charge and skim off the cards each month making billions...

Mon, 12/10/2012 - 11:49 | 3048626 MachoMan
MachoMan's picture

This doesn't happen anymore...  In reponse to complaints by retailers of the first of the month hordes, the SNAP (et al) benefits have been rolled out over the course of the month, often times based upon last name.  In other words, at one point in time, everyone could go witness the modern bread lines even in an EBT world.  However, this too has been obfuscated.  I suspect though, like virtually all other measures, the law of diminishing returns will make another appearance and we'll be back at square one.

Mon, 12/10/2012 - 01:55 | 3048015 newengland
newengland's picture

Dr Engali,

One step at a time. I do as you do: buy local. You and I are fortunate. By this way, local people are employed and they can buy local eventually.

I love my land, my people, my Republic, no matter what it costs. I am happy to be home.

Mon, 12/10/2012 - 02:00 | 3048021 williambanzai7
williambanzai7's picture

There is currently a great need for carpenters in NYC.

Mon, 12/10/2012 - 10:53 | 3048441 tip e. canoe
tip e. canoe's picture

unfortunately, you either have to pledge your first-born child to the Carpenters Union or be an skilled but undocumented immigrant willing to work for peanuts in order to get any work.

Mon, 12/10/2012 - 01:21 | 3047989 AGuy
AGuy's picture

"that for every one job they create here, they will create ten in another third world country."

No they are simply building automated factories. They want to cut out the labor as much as possible. In the past it was cheaper to off-shore to cheap Chinese labor with workers making 10 to 20 cents an hour. Because of Inflation in China, wages are rising. and this makes domestic automated factories cheaper than Chinese labor.

 

Mon, 12/10/2012 - 01:49 | 3048009 williambanzai7
williambanzai7's picture

I could show you some articles about the mad rush to send Chinese students to American universities and how the American science degree means much more in China.

Mon, 12/10/2012 - 15:03 | 3049229 Aurora Ex Machina
Aurora Ex Machina's picture

They're going to be part of the new wave, along with Amazon (look to which company Amazon bought, and wonder at deals being made for production, and with whom). Since Foxconn is switching to using them, the same model will work in America, without the messy unpredictable bother of dealing with non-compliant workers raised on McDonalds and Fox News in their trailers.

What am I talking about?

 

iRobots.

Mon, 12/10/2012 - 00:09 | 3047869 williambanzai7
williambanzai7's picture

There was a period when you were automatically considered a fool for thinking you could manage labor in the US. The MSM blindly perpetuated this meme.

Meanwhile the Japanese and German auto makers seemed to have been able to do it. What do they teach the Japanese and Germans about factory management that they don't teach the Harvard-Soviets?

In two words, cooperation and respect.

Mon, 12/10/2012 - 00:19 | 3047886 Id fight Gandhi
Id fight Gandhi's picture

WB7, REQUEST. Can you please do up some artwork showing the EBT card like an ad for a credit card, maybe a "black card" version a la Amex? Obama edition?

Thanks, I love your satire, always Gives me a smile!

Mon, 12/10/2012 - 00:37 | 3047917 williambanzai7
williambanzai7's picture

EBT Card...do they give frequent pauper miles?

Mon, 12/10/2012 - 01:47 | 3048008 Yen Cross
Yen Cross's picture

frequent pauper miles / I just fried my keyboard! I think, I just lost a lung on that one!

Mon, 12/10/2012 - 02:56 | 3047889 williambanzai7
williambanzai7's picture

I got junked by Thomas Friedman's dog Flatso.

MERRY JUNKMAS

Mon, 12/10/2012 - 03:21 | 3048068 Yen Cross
Yen Cross's picture

No junks from me! never ever/ Iceland comes to mind?

  Bill #7 if you have a trading terminal, I'm giving you some inside info. Short risk in 2-3 hours/ you will get pumped(stop hunters). Add to your posistion and be really quiet. You are welcome/``

  Don't set S/L, trailing stops are ok

Mon, 12/10/2012 - 01:18 | 3047985 AGuy
AGuy's picture

"I have been reading the MSM stories about GE and Apple repatriating factory jobs to the US. "

These factories will be nearly completely automated. They will hire very few workers, and the majority of workers they hire will be skilled engineers to design and operate the machines. At best there will be a few  unskilled workers to load the machines with raw materials and to ship out the finished products.

"The China manufacturing meme was apparently a fad accelerated by the short term share value enhancement sought by Wall Street"

This is happening because of rising wages in overseas and worker revolts.  And they aren't bring back the majority of manufacturing, just the small portion that can be fully automated.

Mon, 12/10/2012 - 01:57 | 3048013 williambanzai7
williambanzai7's picture

Read about the GE boiler plant. It's interesting.

If you have 10 jobs managing robots, better have them in the US.

Mon, 12/10/2012 - 05:58 | 3048129 slackrabbit
slackrabbit's picture

 

Bang on.

As I said to my local MP, 'you got what you the socialist corptocracy wanted and suddenly realised you have run out of tax payers and consumers. It took you 30 years to break and it'll take 30 years to fix. So what do you think this  unemployed mob is going to do in the meantime?'

Don't forget the burger robot

http://www.geekologie.com/2012/12/burger-robot-can-crank-out-360-bph-bur...


 FORWARD !

 

Mon, 12/10/2012 - 08:26 | 3048199 StychoKiller
StychoKiller's picture

So, who's the next slave-labor camp?  Vietnam?

Mon, 12/10/2012 - 10:48 | 3048429 tip e. canoe
tip e. canoe's picture

all good points, however, is the answer to get americans back to working for those very same corporations who shipped those jobs out in the first place?   (those very same jobs will be for lower wages than they were before they were shipped off due to wage arbitrage.)   is the answer to reindustralize America under the very same debt-based ponzi system (gone global) that existed before all for the sake of creating "Jobs"?

sorry, but i smell a long con.

Mon, 12/10/2012 - 11:34 | 3048571 williambanzai7
williambanzai7's picture

No that is definitely not the right answer. But people need to understand that this has been a very long drawn out application of vampire capitalism and the vampires anre now busy trying to steal the narrative with the physical cliff.

Meanwhile they are trying to brainwash the masses with the hopium pipedrwam that some sort of recovery is underway. Shit we've been hearing it for almost four years now.

Mon, 12/10/2012 - 15:05 | 3049233 Aurora Ex Machina
Aurora Ex Machina's picture

The simple answer is that it won't be Americans working (apart from for the glossy PR walk-a-bouts & brochures).

Sun, 12/09/2012 - 23:45 | 3047815 Goldilocks
Goldilocks's picture

Johnny Cash - Sixteen Tons
http://www.youtube.com/watch?v=tfp2O9ADwGk (2:44)

Sun, 12/09/2012 - 23:46 | 3047816 Alcoholic Nativ...
Alcoholic Native American's picture

I just lost mine, fuckers found out I work.  I have vices..., doritoes, ginger ale, rising crust pizza's and slabs of meat.   What the fuck am I going to do now?

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