Comment by acoustics

3 days ago

People should be able to get cash transfers to buy goods on the general market. There shouldn't be food stamps.

The success of SNAP comes despite its inherent inefficiency, friction, and the indignity of its limitations. We structure the program the way we do in order to mollify voters who twitch at the idea of the poor ever enjoying anything.

Inequality isn't just about healthcare costs, biological metrics, etc. It is also deeply corrosive socially and psychologically, and this side of things is systemically underappreciated in policy circles.

To be sure, our food and diets are bad. Americans broadly should eat healthier. But are society's interests really better served by insisting that a poor child not be allowed to have a cake and blow out the candles on his birthday, the way all of his friends do?

In California you can use food stamps for fast food.

I haven't been there in a while so it might be different now.

Let's think about it.

Your homeless or in an unstable living situation. You don't have access to a kitchen, where are you going to make a home cooked meal.

How are you going to prepare raw chicken without a stove. Some homeless encampments do have people trying to cook, which sounds neat until a fire starts.

Let someone down on there luck buy a sandwich with SNAP. Maybe a shake too. Keeps the fastfood franchise in business, keeps people employed there.

The money is going to flow right into the local economy. I'd rather my tax dollars stay here than funding military bases all over planet earth.

I agree with you though. Just give people money. I feel like a UBI is the way to go. A single Flat tax rate for everyone. Everyone gets 1000$ a month( just off the top of my head, could be higher or lower).

The bizzaro welfare cliff... If you and your partner have kids it can be smart to not get married and have the kids live with whoever makes less.

They get free healthcare with the less affluent parent and you just hope you don't get sick.

  • In California you can also use food stamps at farmer’s markets with a 50% discount.

It seems unnecessarily reductive to insist that we must choose between endlessly subsidizing Mountain Dew and Twinkies or that poor children should never be allowed to have cake.

  • Mountain Dew and Twinkies are bad for your health regardless of your income level. We should tackle unhealthy eating by going after the supply, not by going after a class-segmented group of consumers.

    Like many Americans, I grew up in a town where unhealthy eating was a major part of the social rhythms of life: a bag of buttery popcorn at the movie theater, an ice cream at the zoo, things like that. Not having the means to participate in these simple pleasures is a kind of social deprivation. I view redistributive programs as a tool to lessen the gap between families. Food regulators can handle the junk food problem.

    • The moral calculus is not the same.

      I don't think we have an obligation to legislate everyone's health, but I do think it's a higher ask when we're talking about explicitly subsidizing bad choices for people most vulnerable to making them. I don't think we should subsidize cigarettes for poor people, either, even if that means they are still accessible to rich people in a way that's perceived as unfair.

      And besides: people of high incomes already disproportionately avoid these highly processed foods, so it's not like we're hoarding the wealthy pleasures of Mountain Dew and Twinkies just for them.

      1 reply →

Honestly when it comes to SNAP there's no good answer that achieves all of the reasonable policy goals ('make sure the kids have something to eat', and 'avoid wasting benefit money on crap')

You can replace it with cash aid, and there's a good chance a good chunk of recipients will spend most of it on drugs, lottery tickets, or alcohol while the kids go hungry.

On the other hand, you can have the way it is now, where the same kind of person who would do the above, sells $200 worth of SNAP benefits to whatever corrupt bodega owner in exchange for $100 to spend on drugs, lottery tickets, or alcohol while the kids go hungry.

In both situations the government is spending $200 to buy the poor harmful vices. We're just choosing between fraudster shop owners getting a cut, or the addict being able to buy twice as much malt liquor.

And in case it isn't clear, I don't think the majority of SNAP recipients sell their benefits or don't feed their kids. But the responsible group, well, it makes little difference to them whether they have EBT or cash aid as they're going to buy food anyway.

  • > We're just choosing between fraudster shop owners getting a cut, or the addict being able to buy twice as much malt liquor.

    I don't agree with these zero friction in a vacuum takes. Difficulty in access does shape choices, a lot in fact.

    If you make it easier for people to use handouts to gamble or do drugs or whatever then more people will do it and ones doing it will do more of it. This isn't even a take its the null hypothesis.

    • The null hypothesis could just as easily be if they get a 1:1 dollar exchange rate versus a 1:2 rate on their food stamps, they can afford to buy drugs AND food instead of just drugs. Guess which one they buy if they can only buy one? Guess what they are incentivized to do if they have less cash than they need on hand to do both? I'll give you a hint, it rhymes with teal.