Banks and retailers make a lot of money from poverty, but not in the way you might think. The unemployment figure is not that much higher than four years ago, but under Obama SNAP was $72 billion in 2011, up from $30 billion just four years before. Banks which manage the cards charge the poor fees just like they charge us. The Food and Nutrition Service (FNS) reports:
"SNAP benefits are accessed via an Electronic Benefit Transfer (EBT) card that is processed using electronic funds transfer technology. EBT cards look and operate like bank-issued debit cards. SNAP benefits are accessed by swiping the EBT card on a point-of-sale (POS) terminal at an FNS retailer location and entering a personal identification number (PIN)."
It's a sweet deal. The poor go to the polls to reelect their savior believing he's helping them, and the corporations that make money from poverty funnel money into his campaign to keep them poor. Ignore the fact that this report I cite is anti-big business and successful retailer like Wal-Mart. The problem is the government, not capitalism, which is supposed to make a profit.
http://www.eatdrinkpolitics.com/wp-content/uploads/FoodStampsFollowtheMoneySimon.pdf
There are 210,000 SNAP-authorized retailers nationwide, ranging from liquor stores to superstores to farmers markets. But there are rules--yes, you buy the food with the EBT card, and the alcohol and cigarettes with cash. They may be poor, but they certainly aren’t stupid. And as long as a liquor store also sells appropriate food items, it can accept EBT cards.
As unemployment decreased during the recession (which actually ended in June 2009), food stamp enrollment (SNAP) increased. From 2010 to 2011, enrollment jumped from 40.3 million to 44.7 million.
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