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The Subsidy Addiction: Jobs Vs Foodstamps

Tyler Durden's picture




 

In the aftermath of Friday's mediocre jobs report, and while we wait for the USDA to release the latest November foodstamp update which will almost certainly print at a new record high, here is yet another representation of a relationship we have shown on several occasions previously, yet which is always entertaining, and shows just what kind of "recovery" the US is undergoing. Presenting the indexed change of payrolls (green line) and foodstamps recipients (red). No explanation is necessary.

Some thoughts from Bloomberg Brief:

An ongoing concern is that growth in jobs continues to be dwarfed by the surge in food stamps. During the first 10 months of 2012 there were 1.01 million new additions to the USDA’s Supplemental Nutrition Assistance Program (SNAP), a 2.2 percent increase. During the same period, the number of nonfarm payroll jobs increased by 1.5 million, a 1.1 percent gain.

 

The results from the end of the recession in June 2009 are even more staggering. The number of food stamp recipients has rocketed 30 percent since mid-2009, yet the number of nonfarm payroll jobs has inched up a mere 2 percent over that same period. Considering the composition of those jobs – in low wage industries – the household sector is clearly suffering.

 

In a conference call last Thursday, a day before the jobs report, Scott Beattie, CEO of Elizabeth Arden noted that the company’s customers remain challenged by the economy. “These are customers that are living paycheck-to-paycheck, many of them reliant on government subsidy in food stamps and unemployment insurance and other kinds of government subsidies, and you see it,” he said.

 

Dick Boer, CEO of Koninklijke Ahold Nv, the Dutch owner of Stop & Shop, mentioned his concerns with this issue in late November. “We know that 15 percent of the Americans are living on food stamps today, and we know that most of them, even after two or three weeks, are short of money.

 

And David Dillion, the CEO of grocery store giant Kroger recently said that while the economy has gently improved, value customers are still stretched. “We still are getting a lot of food stamps, a very high dollar amount and a very high percentage amount, and that is definitely problematic.”

 

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Mon, 02/04/2013 - 09:36 | 3212926 vamoose1
vamoose1's picture

gawd

Mon, 02/04/2013 - 10:18 | 3213068 economics9698
economics9698's picture

The workers paradise.

Mon, 02/04/2013 - 10:34 | 3213130 FL_Conservative
FL_Conservative's picture

The Obama recovery.

Mon, 02/04/2013 - 11:44 | 3213364 sbenard
sbenard's picture

The Obamalaise economy!

Mon, 02/04/2013 - 11:54 | 3213396 trav777
trav777's picture

why are these people calling this a negative???

It's a POSITIVE.  It means that the "rich" are paying their "fair share."  And the poor, who are ONLY poor because they were oppressed and their wealth was stolen from them, are ENTITLED to free stuff.

That's right, the rich STOLE the poor's wealth; that's how they became poor.  They were formerly rich, probably born that way, but then it all got STOLEN by the rich right out from under their hapless noses.  Maybe it was carried off in a bunch of big, silent trucks, but it was STOLEN.  That's what I hear on TV and from the left, so it must be true because the left loves science.

And that's why we need reparations.  Because YOU didn't build that.  Someone ELSE built it and you STOLE it from them.  Now, I can't answer as to whether THEY built it or simply stole it from you, but these aren't questions you should be asking.  They're seditious and evil questions.

The haves have because of stealing.  Except asians and jews; that's because of hard work and the culture fairy.  They would have even more except for all the oppression and hatred they suffer but not quite enough to warrant affirmative action.

Mon, 02/04/2013 - 15:18 | 3213997 aheady
aheady's picture

lol

Mon, 02/04/2013 - 10:43 | 3213156 mightycluck
mightycluck's picture

While reading through my morning links, i found a similar story WHICH IS EVEN WORSE! Food stamp dependency grows as American wages and salaries continue to fall. JEEZ WHAT A MESS!!!!!!!!!!!!!!!!!

http://confoundedinterest.wordpress.com/2013/02/04/housing-pickle-food-s...

Mon, 02/04/2013 - 13:53 | 3213717 AGuy
AGuy's picture

Interesting investment strategy: Food Stamps. Its a growth industry!

 

Mon, 02/04/2013 - 15:55 | 3214118 Panafrican Funk...
Panafrican Funktron Robot's picture

JPM up a shitload since 2009, probably mostly due to it's food stamp program.  Oh, and release of loan loss reserves of course.

http://www.finviz.com/quote.ashx?t=JPM&ty=c&ta=0&p=m

Mon, 02/04/2013 - 15:15 | 3213986 neutrinoman
neutrinoman's picture

The non-workers not-so-paradise.

Mon, 02/04/2013 - 15:52 | 3214111 Panafrican Funk...
Panafrican Funktron Robot's picture

http://www.youtube.com/watch?v=_H3Sv2zad6s

This kind of paradise.  

Mon, 02/04/2013 - 09:37 | 3212930 100pcDredge
100pcDredge's picture

I think the subsidies are just... lame.

Ehm... too low, I meant.

Mon, 02/04/2013 - 09:40 | 3212944 Ratscam
Ratscam's picture

on the chart it appears that they are levelling out ....
waiting for the next increase.

Mon, 02/04/2013 - 10:10 | 3213041 Muppet Pimp
Muppet Pimp's picture

A great way to get food below wholesale is to purchase an actual EBT card from the food stamp recipient.  I bought my last EBT card for $500 cash and it doles out just over 200 bucks a month in food.  It gets replenished monthly, so i have now saved over $1000 on my grocery bills since the purchase.  The owner of the card has a job and didn't really need the food stamps anyway. He appreciated being able to get that $500 cash though.

Virtually all government 'free shit' initiatives can be used by working folks to secure goods below wholesale pricing.  Most of the recipients don't really need the stuff, it is basically vote buying by Obama.  So offer them cash and secure the road to goods below wholesale for yourself. 

Mon, 02/04/2013 - 10:14 | 3213055 duo
duo's picture

you can do that with Home Depot gift cards that are refunds for shoplifted merchandise that has been returned for store credit.  Stand around in front of a HD and you'll see the mules.

Of course, HD, at our leaders insistance, will not try to stop theft, just hire more people to stand around and say "Hi" to you.

Mon, 02/04/2013 - 11:50 | 3213380 brown_hornet
brown_hornet's picture

MP- You are part of the problem.

Mon, 02/04/2013 - 11:58 | 3213405 trav777
trav777's picture

nah, bitch, he part of da solution.

why u tryin to oppress all doze EBTzes and sheeit?  Dey don't want that cracka shit muffugga, all that food n sheeit and nutrishun and shit.  Dey beez gypshuns n sheeit.  They gots gold toofs ta buy and rocks and dat shit need papuh

Mon, 02/04/2013 - 16:18 | 3214208 tango
tango's picture

You're so old fashioned, brown hornet/ Didn't you know that principles are for other people and it's OK to bitch about government spending while working to use someone else's welfare? The intellectual dishonesty is astounding.

Mon, 02/04/2013 - 16:03 | 3214142 Panafrican Funk...
Panafrican Funktron Robot's picture

Food stamps have acted as cash equivs pretty much since their inception, you can use them to get booze/drugs/guns.  There's a reason that, despite food stamps, a lot of children still go hungry.  The better tactic would be to use the portion of the monthly remit to the parent that is for "child welfare" and disburse food/clothing/etc. to the kid at their school or Head Start program (including giving them 3 square meals a day).  I tend to agree with the idea that adults on welfare need a lot more restrictions, including menial labor requirements, in order to get their money.  For the kids (that didn't choose their birth), I'm completely good with helping them out and consider it a societal responsibility. 

Mon, 02/04/2013 - 09:37 | 3212931 suteibu
suteibu's picture

"...and that is definitely problematic"

Ya think?

Mon, 02/04/2013 - 09:40 | 3212939 Ralph Spoilsport
Ralph Spoilsport's picture

It will be more definitely problematic on the day the EBT cards stop working.

Mon, 02/04/2013 - 09:48 | 3212965 Water Is Wet
Water Is Wet's picture

Not for me.  Food prices might actually fall to a more reasonable level again.  It's unsurprising how expensive food has gotten when the government steals money so 50 million people can get free food.

Mon, 02/04/2013 - 16:21 | 3214217 tango
tango's picture

Very doubtful (food falling). Almost every reputable financial advisor has part of their client's holdings in food because many factors are contributing to the rise - more mouths, bad weather, central bank money printing, rising price of fuel, etc. Food and energy are on a long upward trajectory until technology finally steps in to change things.

Mon, 02/04/2013 - 16:02 | 3214137 Nick Jihad
Nick Jihad's picture

And that is JPMorgan's ace in the hole, isn't it?  They process all of the EBT transactions, so anything that endangers JPM puts us all in danger of nationwide rioting. Now that is "systemically important".

Mon, 02/04/2013 - 09:38 | 3212934 100pcDredge
100pcDredge's picture

Just like some wages...

Mon, 02/04/2013 - 09:39 | 3212936 insanelysane
insanelysane's picture

It would be nice to see a chart from these supermarket chains on their % of goods sold to food stamps over the years.

Mon, 02/04/2013 - 09:44 | 3212953 Ralph Spoilsport
Ralph Spoilsport's picture

At a minimum it would be 15 % according to TFA but probably higher. The local stores around here know exactly when the EBT cards are re-upped because they have to bring in more checkout people.

Mon, 02/04/2013 - 14:21 | 3213797 Umh
Umh's picture

FWIW those are bad days to go shopping.

Mon, 02/04/2013 - 10:06 | 3213029 Magnum
Magnum's picture

A friend of mine owns a longstanding Asian supermarket and the clientele there are not all poor by any stretch of the imagination.  A few weeks ago as I was there waiting I noticed customer after customer paying with the EBT cards, and I believe there is a local state food card.  I asked him what percentage of his business is food stamp he said SEVENTY PERCENT.

Mon, 02/04/2013 - 12:33 | 3213494 spooz
spooz's picture

The clientele may not be poor by any stretch of the imagination, but if they are using SNAP:

They have less than $2000 in the "countable resources" (non-retirement bank accounts).  In some states the value of your car is also included.

Their monthly net income is not above the poverty line ($931 for one person, $1261 for two, $1591 for three...), with some deductions.  

How do you judge the wealth of the clientele?  Are poor people supposed to look disheveled, dirty, wear rags?

 

Mon, 02/04/2013 - 14:24 | 3213808 Umh
Umh's picture

Their not being allowed to have much money in the bank explains the nice clothes and jewelry.

Mon, 02/04/2013 - 16:43 | 3214293 Col_Sanders
Col_Sanders's picture

I don't think they *have* to look disheveled or dirty and they don't have to wear rags.

However, I think wearing Gucci boots, Lucky jeans, a Victoria's Secret pullover, an Invicta watch, and a Cartier necklace; and pulling their EBT card out of a lizard-skin wallet they keep in a Coach bag and paying for their groceries while talking to someone on their iPhone 5 is a bit much.

Mon, 02/04/2013 - 11:04 | 3213223 fuu
fuu's picture

Kraft says at least 16% of their revenue is food stamps or snap. http://www.ft.com/cms/s/0/7ed1db42-f932-11e1-945b-00144feabdc0.html#axzz2JwVzLIsA

Congress does not require data collection on SNAP product purchases, despite such data being critical to effective evaluation http://www.eatdrinkpolitics.com/wp-content/uploads/FoodStampsFollowtheMoneySimon.pdf (PDF)

 

Mon, 02/04/2013 - 11:14 | 3213263 MachoMan
MachoMan's picture

The actual % is irrelevant considering virtually all retailers (including walmart) couldn't keep the lights on if it wasn't for food stamps...

Mon, 02/04/2013 - 09:40 | 3212940 goldenbuddha454
goldenbuddha454's picture

Remember, NFP's down, food stamps up= good for  the market.  Whatelse really matters?

Mon, 02/04/2013 - 09:40 | 3212941 MFLTucson
MFLTucson's picture

Are they allowed to invest foodstamp money in the stock market?  Would be good idea because they could make a couple a thousand a month watching the Wall Street whores run this market to the moon on more false hope!  One way out of Goverment dependence.

Mon, 02/04/2013 - 09:52 | 3212961 CheapBastard
CheapBastard's picture

<< Are they allowed to invest foodstamp money in the stock market? >>

 

NO. They can only buy treasury bonds with them. Some SNAP up the T-bills instead.

Mon, 02/04/2013 - 15:18 | 3214000 neutrinoman
neutrinoman's picture

Wow ... a great way to fund people's retirements.

Mon, 02/04/2013 - 11:17 | 3213270 MachoMan
MachoMan's picture

No...  wallstreet has its own foodstamps, albeit on a larger scale.

Mon, 02/04/2013 - 09:43 | 3212952 Being Free
Being Free's picture

If someone is eligibile for Food Stamps but could get by without them should they take the "benifits" anyway?

Mon, 02/04/2013 - 09:52 | 3212978 cossack55
cossack55's picture

If Corzine knows that he can steal client funds and not be prosecuted, should he steal the $3.2 billion anyway?

Mon, 02/04/2013 - 15:23 | 3214031 neutrinoman
neutrinoman's picture

If his clients can get on to food stamps afterwards, sure.

Mon, 02/04/2013 - 09:56 | 3212997 IridiumRebel
IridiumRebel's picture

absolutely....ride this bitch into the ground.

Mon, 02/04/2013 - 10:33 | 3213123 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

None of the above fuck it cut the cord

Lights out guerilla Radio
Turn that shit up

 

https://www.youtube.com/watch?v=H0kJLW2EwMg

 

 

Mon, 02/04/2013 - 11:19 | 3213283 MachoMan
MachoMan's picture

If someone steals 30% of all of your labor and has done so for years, to the tune of tens of not hundreds of thousands of dollars (and will continue to do so in perpetuity), then aren't you just using self help to return some of your stolen money (given the person/entity that stole it is eternally conflicted)?

Mon, 02/04/2013 - 12:01 | 3213409 trav777
trav777's picture

let's see...I paid enough in fucking taxes last year and the previous few to cover entire fucking salaries of professional class people.  So where exactly in the fuck did I STEAL anything from fucking ANYONE?

Oh you meant *I* should go on EBT...gotcha, my bad.  Because all the other taxpayers are thieves except of course me.

Mon, 02/04/2013 - 15:56 | 3214120 MachoMan
MachoMan's picture

You should do whatever you like...  however, it appears that if you are only receiving back what you paid through taxation (what was stolen from you by uncle sugar), then you wouldn't be stealing anything...  you would only be getting back what was stolen from you...  although, you might just have to bump elbows with some less fortunate souls in order to get your EBT card...

PS, there is no need to attempt to fellate yourself on the board...  we're sure you have a tiny weenus.

Mon, 02/04/2013 - 16:08 | 3214168 Nick Jihad
Nick Jihad's picture

So, for once in a blue moon, Trav makes a valid point. And we can tell his point is valid, because you resorted to a childish ad-hominem.

Mon, 02/04/2013 - 18:11 | 3214523 MachoMan
MachoMan's picture

Actually, trav was so busy trying to give himself a blow job he failed to see that no one was even talking about him...  his comments were completely irrelevant at best... 

Further, on the topic of logical fallacies, might want to reference this page http://www.nizkor.org/features/fallacies/ and contemplate which one(s) this statement falls into, And we can tell his point is valid, because you resorted to a childish ad-hominem.

[you can post back and let us know which ones you find].

Mon, 02/04/2013 - 16:30 | 3214255 tango
tango's picture

Machoman, what you are doing is otherwise known as rationalization. It's as daffy as those trying to figure out what percent of taxes they think is "fair" and only paying that. Childless couples won't pay taxes for school or the DOE, anti-war folks won't pay defense taxes, anti-welfare won't pay SS or Medicare, those against the FED would not pay the percent going to interest on the debt, etc. Your attitude is really no different than a welfare mom who assumes she should get money because she is "unable" to work.

Mon, 02/04/2013 - 19:12 | 3214713 MachoMan
MachoMan's picture

Ok, so I am "rationalizing" and the self help I am describing is no different than a "welfare mom who assumes she should get money because she is unable to work."  (internal quotations omitted).

Could you please articulate the source for the funds necessary for me to get the bike and the funds necessary for welfare mom to get the bike?  [hint, it's easy, they're both me!].  By virtue of this fact alone, the two scenarios are different enough to warrant separate discussion.

Mon, 02/04/2013 - 09:44 | 3212955 CheapBastard
CheapBastard's picture

How much do food stamps go for on Ebay?

Mon, 02/04/2013 - 09:44 | 3212957 Peter Pan
Peter Pan's picture

Can someone provide a breakdown of what SNAP recipients are spending the money on?

With that kind of detail we might be better able to discuss the above chart.

There is no doubt that jobs growth is lagging and will continue to lag for years due to productivity gains, slowing economy, demographics, jobs being replaced by technology etc.

Food stamps are not a cure and neither is printing them.

Mon, 02/04/2013 - 09:49 | 3212971 10PastMidnight
10PastMidnight's picture

Fiats are not a cure and neither is printing them, but the band plays on my friend.

Mon, 02/04/2013 - 09:53 | 3212984 IridiumRebel
IridiumRebel's picture

Long cheese doodles and 40s

Mon, 02/04/2013 - 12:37 | 3213448 spooz
spooz's picture

They spend SNAP benefits on food. Are you looking for a breakdown between breads and cereals, fruits and vegetables, meats, fish and poultry and dairy products? Or do you want a detailed list so you can be outraged that some minimum wage slave dares to buy Doritos or soda with his benefits?

http://www.fns.usda.gov/snap/retailers/eligible.htm

Mon, 02/04/2013 - 12:29 | 3213487 fuu
fuu's picture

No one tracks it.

Mon, 02/04/2013 - 09:52 | 3212976 Stuffs And Stuff
Stuffs And Stuff's picture

"Fuck jobs - We got foodstamps!" 

Mon, 02/04/2013 - 09:59 | 3213004 W74
W74's picture

This video would be well worth your time, it's barely over two minutes:

http://www.youtube.com/watch?v=Z5tqH7UrzOw

"I JUST WANT ME A CHECK"

Mon, 02/04/2013 - 12:07 | 3213427 spooz
spooz's picture

Right.  Who needs all that other stuff like a home, clothing or utilities?  Livin' large on less than $200 a month.

Mon, 02/04/2013 - 12:19 | 3213459 Stuffs And Stuff
Stuffs And Stuff's picture

I was quoting Walstreetpro2. In one of his videos he talks about how jobs are being shipped overseas and the economy is being gutted, then he sarcastically says fuck jobs we got foodstamps.

Mon, 02/04/2013 - 12:36 | 3213505 spooz
spooz's picture

Sorry if I missed the sarcasm.  I just can't handle the elites trying to paint the minimum wage slaves who use food stamps as being lazy. 

Mon, 02/04/2013 - 15:20 | 3214016 misnomer
misnomer's picture

Okay, I get what you are saying.  But, is there any indication that the SNAP program is actually helping people get out of poverty?  Isn't that the whole point of helping the poor - to give them a hand up?

We don't have Food Stamps here where I live, there are agencies in place to help people find work though.  I support those wholeheartedly.

Mon, 02/04/2013 - 15:23 | 3214033 Stuffs And Stuff
Stuffs And Stuff's picture

I'm right there with you, Spooz.

Mon, 02/04/2013 - 09:52 | 3212977 orangegeek
orangegeek's picture

Handouts are how you keep the herd down.

 

They are a nasty tool socialists uses to control the herd and gather votes.

Mon, 02/04/2013 - 09:57 | 3212998 W74
W74's picture

And to destabilize and terrorize the "opposition" which in this country simply means the working and middle classes which have and actually take care of their families.

Mon, 02/04/2013 - 09:59 | 3213007 Water Is Wet
Water Is Wet's picture

And price responsible people out of having children, while the moochers pop'em out for handouts.  Fuck the Free Shit Army.

Mon, 02/04/2013 - 11:00 | 3213207 Stuffs And Stuff
Stuffs And Stuff's picture

Social engineering, anyone?

If my intention was to destroy the very fabric of society, I would have a great blueprint to follow.

I'm going to run for President in 2016. Here are some of my promises.

We'll weed out the responsible people and actively support and enable dependency.

We'll create problems and then campaign against them.

We'll control and manipulate everything from the economy, to education, to the media; everything.

Your property, is the propery of the state. You are property of the state.

You will be well medicated.

You will not know.

What is it that you will not know?

You will not know anything.

You will not need to know anything.

Should you learn of anything, we will dispose of you; for your own safety, ofcourse.

Remember - We love you.

God bless America.

Stuffs for President?

Mon, 02/04/2013 - 11:14 | 3213258 Harbanger
Harbanger's picture

In other words, you'd just keep right on doing what he's doing.

Mon, 02/04/2013 - 15:31 | 3214057 Stuffs And Stuff
Stuffs And Stuff's picture

Exactly. Atleast we would finally have an open and transparent administration, if nothing else.

Mon, 02/04/2013 - 10:08 | 3213037 tsuki
tsuki's picture

And a nasty tool fascists use to promote divisiveness and hatred of worker vs the mid-dull class while they skim the cream off the top unnoticed.

Mon, 02/04/2013 - 09:53 | 3212982 Inthemix96
Inthemix96's picture

Will be interesting to see the central planners reactions when the EBT cards get switched off.

You think the "Lord Of Darkness" blankfiend will give a fuck?  50 million to one says he just might.

You wont be able to see the lamposts from the bodies hanging from them, I fucking relish the day.

 

Mon, 02/04/2013 - 10:07 | 3213028 forwardho
forwardho's picture

Should the EBT cards be "switched off"

The "Lord of darkness" will be Chaos.

With teeming throngs of entitled Oxidizers running completely amuck, the fate of central planners will most likely not be one of our top concerns.

 

Mon, 02/04/2013 - 10:18 | 3213069 fonzannoon
fonzannoon's picture

Why would they be switched off? Why can't they work perfectly fine, just lose their purchasing power over time like everything else?

Mon, 02/04/2013 - 10:24 | 3213089 forwardho
forwardho's picture

If the end result is the same; Masses of starving people.

How long or what method it takes to get there is irrelevant.

 

Mon, 02/04/2013 - 10:31 | 3213113 Inthemix96
Inthemix96's picture

Agreed forwardho,

But the masses have to have someone to blame.  It'll be some poor joe doing his job in the dole office that gets whacked first, no EBT no food, no food, fucking pandumanium in twenty minutes.  And nearly fifty million pandemaniacs is a fucking shit load to deal with.

Think on that NSA and DHS, you ready for 50 million starving fuckers with a heavy grudge and an empty belly?

Mon, 02/04/2013 - 10:34 | 3213126 Inthemix96
Inthemix96's picture

Edit,

Should have thought of that shouldnt I?

That why you lot bought 16 trillion rounds of hollow points for?  Cheeky bastards, lets hope you shoot better than NYC's finest or you may need more you fuckers.

Mon, 02/04/2013 - 10:48 | 3213167 GCT
GCT's picture

They will not turn off the SNAP cards anytime soon.  Riots in the street would ensue.  SNAP is big business for the banks, and foodplaces.  I do agreethere will come a time when they may shut them off but not in my lifetime.  they would have to disarm us first. 

Mon, 02/04/2013 - 11:40 | 3213350 Harbanger
Harbanger's picture

Well when the dollar collapses the free stuff will stop.  The elites know this and are rushing to break the dollar.  Then it's the elite and free shit army vs. the disarmed middle class.

Mon, 02/04/2013 - 12:16 | 3213453 smartstrike
smartstrike's picture

The middle class is the problem: nothing but selfish, greedy bunch of useful idiots, easily manipulated by their corporate masters.

Mon, 02/04/2013 - 12:24 | 3213475 Harbanger
Harbanger's picture

"The middle class is the problem" Yeah, Obama and the ruling elite agree.  The middle class are the only ones who play by the rules, pay the bulk of the taxes, are being fleeced by a devaluing dollar and are the only ones that stand in the way of a 2 class system.  They must be eliminated at all costs.  That's why the focus now is on disarming them.

Mon, 02/04/2013 - 12:46 | 3213520 RebelDevil
RebelDevil's picture

And everyone forgets the lower/underclass that struggle their asses off everyday. What is fucked up about the SNAP program is that the people who need it the most DON'T GET IT. (They don't qualify because they have too much "income" - i.e. they worked "too much" in an effort to pay off heavy [inflated] expenses like fuel oil, gasoline, rent/morgage, cell phone, internet, electric, non-food groceries, car (payment/repair), healthcare, ect.

Mon, 02/04/2013 - 13:01 | 3213569 Harbanger
Harbanger's picture

"...people who need it the most DON'T GET IT. "  Precisely, that's the plan, It's not a safety net for hard times as it should be, it's all about FULL dependency.  That's why you are cut-off entirely for even trying to improve your situation.  Two classes bitches, that's what it's all about and that's just plain fucking un-american.

Mon, 02/04/2013 - 12:53 | 3213541 smartstrike
smartstrike's picture

Yes the middle class is certainly the problem. The French called them "bourgeois.' What did the middle class do in US for the past 40-years? They ran away to hide in suburbia, climbed corporate ladders with their eyes closed while holding up their noses. Have I left anybody out?

Mon, 02/04/2013 - 13:03 | 3213575 Harbanger
Harbanger's picture

Fuck you, the french, the elite, and the free shit army.  You're all going down.

Mon, 02/04/2013 - 13:12 | 3213596 smartstrike
smartstrike's picture

No! You're the one going down, you're the one who created this.

Mon, 02/04/2013 - 13:19 | 3213618 Harbanger
Harbanger's picture

Fuck you and your pee wee herman retorts.  You're going to shit your panties when the markets crash.

Mon, 02/04/2013 - 09:53 | 3212983 forwardho
forwardho's picture

Common theory says that with enough proofs (facts), fantasy will at some point intersect with reality.

Usually quite messy.

It seems that for now the two lines are being forced to run parallel.

 

Mon, 02/04/2013 - 09:55 | 3212992 W74
W74's picture

Let us not also forget that everyone in the Military is on foodstamps as well.  It's simply called BAS (Basic Allowance for Sustinance) or even more simply: "Line item B" on your earning statements.

The rate of course for singles is different for those with "dependants", I know it certainly is when it comes to BAH, the housing allowance.  What's funny is that the payment of the housing allowance artificially inflates the prices of homeownership and rent in the areas surrounding military instalations.  Maybe this isn't so much funny as it is basic economics.

Mon, 02/04/2013 - 10:00 | 3213008 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Sums up the direction we are heading right now....

http://imageshack.us/photo/my-images/19/recessiontimeline.jpg/

 

 

Mon, 02/04/2013 - 10:02 | 3213016 IridiumRebel
IridiumRebel's picture

well played, sir....well played.

Mon, 02/04/2013 - 15:43 | 3214092 DaveA
DaveA's picture

Here's another progression, from prosperity to poverty:

I ♥ MY DOG
I ♠ MY DOG
I ♣ MY DOG
I 8 MY DOG

Mon, 02/04/2013 - 10:01 | 3213014 ISEEIT
ISEEIT's picture

To make this chart even more lovely to behold, one would need an appreciation of just how rampant is the fraud in this program. I do personally know of an enormous amount. Enough as to comfortably assert that easily 50% of the total goes directly out fraudulently. Quite fitting though for a society in which fraud and deceit have replaced individual Liberty and 'justice for all'.

Mon, 02/04/2013 - 10:04 | 3213022 PapSmear
PapSmear's picture

Hope you can believe in.  Forward bitchez!!!

Mon, 02/04/2013 - 10:23 | 3213086 Quinvarius
Quinvarius's picture

Collectivism failing?  Again?

Mon, 02/04/2013 - 15:59 | 3214129 batterycharged
batterycharged's picture

"Collectivism failing?  Again?"

I don't know, China seems to be doing pretty well.

It's the country with more billionaires than any other country that is FAILING.

If the US were collectivist, Jamie Dimon would be hanging by a coat hanger.

 

Mon, 02/04/2013 - 10:26 | 3213096 monopoly
monopoly's picture

"and that is definitely problematic.”

Duh?

Mon, 02/04/2013 - 10:32 | 3213116 IridiumRebel
IridiumRebel's picture

http://www.ft.com/cms/s/0/f6f19228-6bbc-11e2-a17d-00144feab49a.html#axzz...

 

Robots do not collect unemployment, they do not eat so....problem solved

 

 

 

 

 

 

 

but what do we do with the unemployable and low skill set?

Mon, 02/04/2013 - 10:32 | 3213118 Sudden Debt
Sudden Debt's picture

DUDE!!! THIS IS 2013!!!

Better call them DORITO STAMPS!!

Mon, 02/04/2013 - 10:36 | 3213129 yogibear
yogibear's picture

Time for the Central Planners in Amerika to handle 60 million and beyond EBT cards comrades.

Especially with all the new immigrants with amnesty.

Socialism is here. In the future don't be surprised to see for people waiting in line for their Chicken or bread like the former Soviet Union.

The US has become like the former Centrally Planned Soviet Union.

Next the central planners will raid private pensions.

 

 

Mon, 02/04/2013 - 10:42 | 3213154 IridiumRebel
IridiumRebel's picture

100 million is within sight!

Tue, 02/05/2013 - 02:29 | 3215664 Joseph Jones
Joseph Jones's picture

I'm part Pacific Islander, spouse is Hispanic.  Save your racism lecture. 

My wife's first experience tonight with Latin immigrants is in a store.  A screaming wild-mouthed little girl thinks she's cute till my wife stares her down.  Her father ignored it.  Three daughters.  Next time a Latina stares at a toy in wife's hand, then her sister arrives.  Girl #1 says she wants the toy in my wife's hand.  Girl #2 replies really loud right next to my wife, "I can't buy the toy because I have no money, but if I had money I could buy the toy."  Wife walks away, she picks up another toy to inspect, they follow her and play the same routine trying to extort money from her.

Natives in this area are generally extremely polite and would not be caught dead doing this act. 

Awhile back we're checking out of a store and the clerk offers the immigrant lady in front of us to apply for a credit card to receive "$20" off the CC bill.  The lady misunderstands, smiles wildly and says yes, she accepts her free $20 just for being in America, where debt = money.  "Money for nothing, chicks for free." 

I also love the tiny very dark skinned guys in 95+F weather, gardening an office park area, heads bowed low, sweat shirt hood covering their entire face except their mouth and chin.  Legal, I'm sure............NOT. 

If I break into your house, and you want to arrest me: can I get out of jail free by simpling claiming the title "undocumented guest?"

Freakin 3rd world nation coming at ya.  Learn to love it.  What is the ratio of the population of violent felon prisoners, 70%?  

Mon, 02/04/2013 - 10:54 | 3213184 Fuh Querada
Fuh Querada's picture

The disability curve is missing.

Mon, 02/04/2013 - 10:58 | 3213198 HeatMiser
HeatMiser's picture

JP Morgan is the largest processor of food stamp benefits in the United States. Who would have thunk that.

Mon, 02/04/2013 - 12:36 | 3213508 fuu
fuu's picture

Do you think they get to call it excess deposits till it is spent?

Mon, 02/04/2013 - 11:17 | 3213266 IamtheREALmario
IamtheREALmario's picture

It has occurred to me that the "growth paradigm" (the paradigm that healthy things grow) is a false paradigm... or at least has its limitations. The growth paradigm especially as it applies to corporate revenue, corporate profits, executive salaries, government size and spending, banks and total loans outstanding, education, healthcare, insurance, laws, rules, nonproductive overheads, such as lawyers and regulations may very well be DESTRUCTIVE to an economy and a society. More and bigger is not necessarily better and eventually just weighs things down.

ESPECIALLY WHEN THE CONSEQUENCE IS DISAFFECTING A HUGE PORTION OF THE POPULATION WHO ARE NOT ABLE TO FIT IN WITH THE "NEW" SYNTHETIC GROWTH (as opposed to value adding growth). And these are the people who end up on Food Stamps. They become "excess" and are believed to be a drag on the economy ... although not a drag on growth since deficit spending provides food stamps which they then spend into the economy, buoying up corporate and bank growth.

The central banks have obviously figured out that creating inflation substitutes for value added growth under most circumstances. The government has figured out that deficit spending covers up the misallocation of assets. Corporations have found that labor arbitrage, Ponzi acquisition (with increasing goodwill and subsequent write-offs) and PE multiple expansion substitute for organic value added growth.

I am thinking that all of the individual interests care very little for the health of the whole and would willingly have the whole of society suffer as long as they are able to maintain their power and status. Is that sociopathic? psychopathic? normal for human beings? Or just the way the so called leaders deign to run things.

Mon, 02/04/2013 - 11:25 | 3213301 tempo
tempo's picture

US hides its youth unemployment by sending them to 5/6 years of college on student aid, which now exceeds a trillion dollars of subprime, uncollaterized loans.  Lets see the graph on the number of people receiving student aid which is another form of food stamp entitlement.

Mon, 02/04/2013 - 12:24 | 3213473 smartstrike
smartstrike's picture

There is no correlation between SNAP and the unemployment rate since 2001. Historically SNAP participation rate would fall dramatically as economy would move out of recession. But that hasn't been the case for the last 12-years. In the nineties typical population participation rate would be 6%. What changed?

 

 

Mon, 02/04/2013 - 12:27 | 3213482 Wilcat Dafoe
Wilcat Dafoe's picture

Well, at least it grows the economy... when you borrow money from China to pay a guy to stay home, watch TV, buy food, and go to a paid-for doctor once every couple of weeks, the "velocity" of money is much much higher than if you were allowed to keep your own money to pay down your bills, and if that guy had to suck it up and find part time jobs to make ends meet.

 

dont you get it??

Mon, 02/04/2013 - 13:42 | 3213688 spooz
spooz's picture

You repeat propaganda and assume you "get it".

Mon, 02/04/2013 - 15:54 | 3214114 batterycharged
batterycharged's picture

"suck it up and find part time jobs"

Let me guess, you're retired or entrenched in some company that never fires dead weight?

HINT: Even part time jobs are hard to come by.

But apparently not where you come from.

Mon, 02/04/2013 - 13:57 | 3213725 my wag
my wag's picture

Derek Wylde, Group Head of Fraud at HSBC, presented at the Financial Services Club last week. He talked about many aspects of fraud and risk, and presented quite  a few numbers related to the issue.

One of the charts raised questions in my mind.  It related to the total cost of payment card fraud.  According to Derek, payment card fraud costs an average of six to eight basis points on sales. For those who don’t use the terminology of basis points, a basis point is 1/100th of a point, or 0.01 if you prefer.  So fraud costs between 0.06% to 0.08% of the total sales in payment cards.

To put that in context however, a basis point of card sales is worth billions, so eight basis points is a pretty large amount.

You can now see why fraud is an issue, and Derek went on to discuss the main trends in the industry, which include:

  • card fraud falling generally, although cardholder not present (CNP) attacks are rising;
  • ATM attacks are on the rise;
  • serious information risk issues and events are increasing;
  • online fraud threats are ever present and are rising significantly; and
  • internal fraud is always a worry.

Fraud and or theft is always a problem.

Mon, 02/04/2013 - 14:34 | 3213791 Henry Hub
Henry Hub's picture

A large portion of people on SNAP are actually holding down a job and are not the lazy slobs they are portrayed to be. The problem is the minimum wage is far too low. At $7.50 an hour, there is no way in hell a person can support himself/herself, never mind support kids. If they raised the minimum to $11.00 or $12.00 per hour these people could better support themselves and not need SNAP.

Wed, 02/06/2013 - 12:46 | 3220291 conjobs
conjobs's picture

Why not make it $25 an hour? Fuck it, why not $100 an hour? That will get everyone out of poverty, right?

Mon, 02/04/2013 - 15:49 | 3214104 batterycharged
batterycharged's picture

Gee, what's the solution, Tyler Durden?

Oh yeah, people need to take responsibility for themselves and go start up a company that will compete with Walmart or Target.

Maybe they can start up a new auto company.

Or really, they should be running a hedge fund and making money trading paper.

 

I love ZH, they constantly ride the poor and struggling. Noting SYMPTOMS of a shitty economy as the CAUSE.

Seriously, if ZH were a doctor, they'd blame hairloss as the reason for having cancer.

 

Mon, 02/04/2013 - 21:40 | 3215136 dolph9
dolph9's picture

We are a nation of fraudsters, but nobody quite believes it yet because we are still comparatively rich and powerful.

This isn't going to end well, but we could be waiting for awhile.  Decades.

The people on food stamps are merely helping to bring down this system.  I have contempt for "working" people who don't prepare and think everything is alright.  It's not the fraudsters and freeloaders who are propagandized, it's the working slaves.

 

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