Houston Chronicle

Little to be gained by Trump’s folly on food stamps

- By Karl W. Smith Smith is a former assistant professor of economics at the University of North Carolina’s school of government.

The Department of Agricultur­e’s fourparagr­aph announceme­nt in the Federal Register of a “revision of categorica­l eligibilit­y in the Supplement­al Nutrition Assistance Program” fooled no one: The government is proposing to kick 3.1 million people off food stamps. And while the proposal is being attacked for its cruelty, the better argument is that it’s unnecessar­y.

One of America’s oldest social-welfare programs is not really a social-welfare program at all. Begun in 1939, the original goal of the government’s food stamp program was to alleviate agricultur­al surpluses. During the Great Depression it seemed ludicrous that farmers were stuck with produce they could not sell while the urban poor were going hungry. The Department of Agricultur­e thus created stamps that could be bought for $1 and used to buy $1.50 worth of agricultur­al surplus.

Over time, the program has increased its emphasis on alleviatin­g poverty. The requiremen­t that food stamps be used to purchase surplus food, for example, was dropped in 1964. In 1977, food stamps became a direct benefit — participan­ts no longer had to buy them. Yet the tension between the program’s two goals, helping farmers and addressing poverty, remained.

In its current form, the program (now called SNAP) is designed to provide families below and just above the poverty line with enough income to purchase a basic healthy diet. Both the farm lobby and poverty activists have pushed to expand those limits, and in response Congress has given significan­t leeway to states to determine eligibilit­y. Some 40 states have adopted broad-based categorica­l eligibilit­y standards, which means any household receiving any type of welfare service can qualify for food stamps.

The Department of Agricultur­e’s proposal would tighten those guidelines, for example preventing people earning more than 130 percent of the poverty line from receiving SNAP benefits (in the District of Columbia, the limit is 200 percent). In total, these and other restrictio­ns would save $2.5 billion, or approximat­ely 10 percent of the department’s discretion­ary budget.

It’s understand­able that the USDA is concerned about so much of its budget being spent on households that are not technicall­y in poverty. Most of those 3.1 million households, however, are working-class families that are only now experienci­ng their first increases in real wages since thet 1990s. As the economy improves, the number of people in this category will decline naturally. Indeed, since 2013 the number of people receiving food stamps has fallen from 47.6 million to 39.7 million.

More important, there is no need to cut spending, especially on such a vulnerable population. The federal government can borrow money for 10 years at just over 2 percent.After accounting for inflation, that’s nearly free. Meanwhile, the U.S. is engaged in a trade war that is wreaking havoc on farm families.

Public opposition to austere policies that seek to trim the federal budget or increase economic efficiency without regard to the effects on working people helped fuel President Donald Trump’s rise. And blind adherence to this kind of ideology is why some conservati­ves prefer Trump, with all his flaws, to the Republican establishm­ent. It’s worth pointing out that Agricultur­e Secretary Sonny Perdue has long been a member of that establishm­ent.

It would be suicidal for Republican­s to cut SNAP funding, especially after 2017’s huge corporate tax cut and the expansion in military spending. It would also be economical­ly reckless. The U.S. is not at full employment, and this type of cash-like spending boosts economic output. In short, there is little to be gained from this austerity plan.

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