Copyright ©2011 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

JOHN YDSTIE, Host:

This is WEEKEND EDITION from NPR News. I'm John Ydstie. This week, the U.S. Department of Agriculture is expected to release its latest update on the Food Stamp program. It's an important indicator of the nation's economic health, and the prognosis is not good. Food stamp use is up 70 percent over the last four years, and that trend is expected to continue. NPR senior business editor Marilyn Geewax is here with details. Welcome, Marilyn.

MARILYN GEEWAX: Hi, John.

YDSTIE: So, the economy has been growing for more than two years now - slowly - but I guess not fast enough to slow down the increased use of the Food Stamp program.

GEEWAX: Right. At this time four years ago, just before the recession hit, about 27 million Americans were getting food stamps. Today, it's about 46 million. That's roughly 15 percent of the population. And what's really striking when you look at the chart on this is the line just goes straight up. Economists think that the report that's going to come out this week, it'll show that it keeps going up.

YDSTIE: But the economy has been adding jobs since 2009 - not enough to make a real dent in unemployment but still an increase. Why doesn't food stamp use reflect that?

GEEWAX: Well, there are a few reasons. First, nearly half of the 14 million people who are unemployed right now have been out of work six months or longer, and many of them, even when they do find jobs, remain eligible for food stamps, and that pretty much illustrates the other problem. Wages haven't been rising to keep pace with food costs. About 40 percent of the food stamp recipients live in a household where a family member is working, they are earning a wage. But the government's latest inflation report shows that the cost of living has gone up 3.6 percent over the past year and wages really haven't budged that much.

YDSTIE: And there are a lot of factors behind this rise in food prices.

GEEWAX: Oh, you name it. We've had spring floods, summer droughts, soaring global appetites for our foods. Those factors have contributed to about a 70 percent rise in the price of corn just since last August.

YDSTIE: And can the Food Stamp program keep pace?

GEEWAX: John, that's unclear because this is a very expensive program for taxpayers. It's not that it's so generous to individuals. The maximum for a family of four, for example, is $668 a month. So, that works out to $42 per person per week. So, if you figure each person eats three meals a day, that's about $2 for each meal. But when you put it all together, the collective tab is pretty big. Last year, it totaled something like $68 billion.

YDSTIE: And that's certainly a lot when Congress is looking to cut federal spending.

GEEWAX: Exactly. Spending on food stamps, you know, it was actually increased back in 2009 as part of the federal stimulus package. But that extra spending is going to expire in 2013. Of course, extending that kind of funding would be very controversial. Some economists say that the program is certainly worth every penny because it stimulates the economy, and really there's not any question that a lot of grocery stores would see a huge drop in their business if their customers couldn't afford to buy food.

YDSTIE: Right.

GEEWAX: Some economists say that aid for food helps families spend more money on things like gasoline to drive a family member to work or to get coats for the kids to go to school.

YDSTIE: But then, of course, there's the other school of thought that says government assistance leads to long-term dependency.

GEEWAX: Yes. There are other economists, and certainly a lot of lawmakers, who would say that food stamps dampen your incentives to go out and find work or even do things like plant a garden. And there are also questions about fraud. Although about a third of people who qualify for aid actually don't go and get it, there are lots of other people who try to scam the system. And, of course, plenty of taxpayers just object to this idea of having money taken from their paychecks and using it to put food on somebody else's table. These are some of the issues that I think we're going to hear a lot about in the coming month when lawmakers return to Washington and the farmers start to harvest those crops.

YDSTIE: NPR senior business editor Marilyn Geewax. Thanks for joining us, Marilyn.

GEEWAX: Oh, you're welcome, John.

Copyright © 2011 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.