Economics and Nutrition
Begin by watching the poverty tour at the
following website:
http://www.usccb.org/cchd/povertyusa/tour.htm
1.
District of
Columbia
2. Mississippi
3. Louisiana
4. New Mexico
5. Alabama
6. Texas
7. Oklahoma
8. West Virginia
9. Arizona
10. S. Carolina
Top Ten Impoverished areas
#1 District of
Columbia
#8 W. Virginia
#7 Oklahoma
#9 Arizona
#4 New Mexico
#6 Texas
#10 S. Carolina
#2 Mississippi
#5 Alabama
#3 Louisiana
Mr. Holt works 40 hours per week for $7.50. His wife works nights at Wal-Mart for $9.80.
Often, Wal-Mart employees are not full time so let’s say she works 30 hours per week.
Together, they would earn $594 per week, $2376 per month and $28,512 per year. Federal,
State and SSI taxes equal about $8,611 so they net $19,901. They are a family of 4. The
http://aspe.hhs.gov/POVERTY/09poverty.shtml
current poverty threshold calculations are at:
The 2009 Poverty Guidelines for the 48 Contiguous States and
the District of Columbia
Persons in family
Poverty guideline
1
$10,830
2
14,570
3
18,310
4
22,050
5
25,790
6
29,530
7
33,270
8
37,010
For families with more than 8 persons, add $3,740 for each additional person.
Without counting other taxes, the Holt family is at 90% of the
poverty threshold
This is a couple who both work full-time or near
full-time and still are below the poverty threshold.
Is there help for them – probably not…
Before 1996, welfare was an entitlement known as Aid to
Families with Dependent Children.
http://en.wikipedia.org/wiki/Aid_to_Families_with_Dependent_Children
A family was entitled (could not be turned down) to
receive welfare if it had:
• At least one dependent child (under age 15) and
• The child was deprived of a parent’s support due to:
• Death
• Continued absence
• Incapacity
• Unemployment of principal wage earner in a 2parent household
Families on welfare were entitled to monthly wages, housing
benefits, food stamps and health insurance. A minimumwage-level worker often made more in cash and benefits
than she would if she held a full-time job
Welfare was reformed with the passage of the Personal
Responsibility and Work Opportunity Act of 1996 (PRWO)
signed into law by President Clinton
• Established Temporary Assistance to Needy Families
(TANF)
•
http://en.wikipedia.org/wiki/Temporary_Assistance_for_Needy_Families
• AKA: “welfare-to-work”
• Block Grants to States if states prove they:
• Provide assistance to needy families with children
• Provide parents with support so that they can join
the work force
• Require parents/caregivers to work
• Ensure that parents/caregivers work
PRWO Act of 1996 aka “welfare reform”
• Also, to receive Block Grants states must:
• Prove they are trying to prevent/reduce unmarried and
teen pregnancies
• Prove they are educating local law enforcement about
statutory rape
• Certify that they are operating child support
enforcement
Basically, temporary assistance to needy families (TANF) or
welfare to work. Puts families who demonstrate need on a
contract for 2 years where during that time, the wage earner
must
•Receive a HS diploma or equivalent if she doesn’t have one
•Work,
•Ensure that her school-age children are in school
Work includes:
•Paying job – unsubsidized or subsidized by either private or public sector
•Work experience if no work is available
•On-the-job training
•Job search/readiness assistance
•Community service
•Vocational education training
•Job skills/employment education & training
•Education leading to a diploma
•School attendance
•Providing child care to children whose parents are recipients (but not to her
own children)
The states are also receiving grants for programs
aimed at keeping fathers and mothers together. There
are also programs teaching “soft skills” like how to
dress, the need to get to work on time, personal
hygiene, etc
As employment increases, benefits like food
stamps*, child care and health insurance decrease
until the family is no longer eligible. The Holt’s in
Oregon would not be eligible for TANF, food stamps*,
child care or Medicaid (Medicaid might be available if
Mr. Holt were injured and unable to work)
*food stamps have a new name – see next slide
The Food Stamp Program
is now the
Supplemental Nutrition Assistance Program
(SNAP)
http://www.fns.usda.gov/snap/
Benefits are now provided by an electronic transfer card rather
than the old stamps. This cuts down on fraud because the exact
amount of the purchase for eligible food items is transferred
directly to the grocer. (food stamps came in denominations like
cash and the purchaser could receive change which could be
used to buy anything they wanted.)
SNAP Benefit
eligibility
http://www.fns.usda.gov/fsp/applicant_recipients/fs_Res_Ben_Elig.htm
 Income at or below 130% of poverty
 No more than $2,000 in family resources (bank account) or
$3,000 if one member is 65 yrs or older
 Not more than one licensed vehicle worth at or below $4,650
(not counted if vehicle is used as a home)
 For a family of 4 like the Holt’s, monthly gross income of
$2,167 or net of $1,667
• A family like the Holt’s could be eligible for $534 - $544 per
month for food purchases at the grocery or other similar food
store.
• Native Americans can also purchase hunting or fishing
supplies.
Snap use held steady for a few years then began to
surge as the economy worsened. Notice the monthly
benefits – about $56 per week.
Year
#Households
Costs
Ave monthly
Benefit/
household
2008
12,728,248
$34,611,397,238
$226.60
2007
11,789,594
$30,373,271,078
$214.69
2006
11,734,491
$30,187,346,987
$214.38
This chart shows the changes in SNAP benefit use since 2005
Record 31.8 million on food stamps
Government shows increase of 700,000 food stamp recipients in a single month
March 5, 2009
http://money.cnn.com/2009/03/05/news/economy/foodstamps.reut/index.htm?section=money_latest
WASHINGTON (Reuters) -- A record 31.8 million Americans
received food stamps at the latest count, an increase of 700,000
people in one month with the United States in recession,
government figures showed Thursday.
Food stamps, which help poor people buy groceries, are the major
U.S. anti-hunger program, forecast to cost at least $51 billion in this
fiscal year ending Sept. 30, up $10 billion from fiscal 2008...
The average food stamp benefit is $115 a month for individuals and
$255 a month per household
Today’s Poor
Currently, we are finding some new definitions for poverty:
-Traditional poor
Children of single parents
Single mothers
The elderly
-New poor
Individuals and families experiencing extended periods
of unemployment
Today’s Poor
- The Homeless
Fastest growing group is families with
children.
-Working poor
This applies to anyone who is trying to
support a family while working at a minimum
wage job
Along with these new definitions, come new definitions for hunger
HUNGER - MEDICAL DEFINITION
Weakened, disordered condition
caused by prolonged lack of food
HUNGER - COMMON MEANING
The inability, even occasionally, to obtain
adequate food and nourishment
FOOD SECURITY
Assured access to enough food for an
active healthy life
FOOD INSECURITY
Limited or uncertain availability of
nutritionally adequate food
FOOD INSECURITY WITHOUT HUNGER
Inadequate resources to buy enough food
resulting in a lowered quality of food
Carrie’s husband deserted her taking all their
resources: For 2 months, Carrie and her
daughter "basically lived off of rice, beans, and
the kindness of friends" who would occasionally
lend her money for food.
FOOD INSECURITY WITH MODERATE HUNGER
Single mom of infant “I don’t eat lunch
because I don’t have enough money after
buying diapers, baby food, medical care, etc.”
Food quality is decreased to the point that the
adults in the family are frequently hungry
FOOD INSECURITY -
WITH SEVERE HUNGER
Food quality reduced to the point where the children are
regularly hungry and the adults are severely hungry
Helen and her children in Mississippi
“The infant in the photo later died from
malnutrition.” The young girl was killed
by a neighbor.
Food Insecurity Rate by Income
Households with Income:
Under 100% of Poverty
100% to Under 130% of Poverty
Under 130% of Poverty
130% to Under 185% of Poverty
Under 185% of Poverty
At Least 185% of Poverty
35.1%
26.4%
32.5%
20.6%
28.6%
4.9%
10 worst states for food insecurity
Rank and State
% Food insecure
1. Mississippi
18.1
2. New Mexico
16.1
3.
15.9
Texas
4. South Carolina
14.7
5.
14.6
Oklahoma
6. Utah
14.5
7.
Louisiana
14.4
8.
Arkansas
14.3
9.
Kentucky
13.6
10. Arizona
13.1
Final Paper, Part 1, 3 pages,15 pts.
Due on or before July 29
The Paradox of Obesity and Hunger
Develop a well-reasoned discussion explaining the seeming
paradox of low income individuals having the highest obesity
and chronic disease rates. Use published sources to support
your discussion.
Some good search terms are: low income healthy food, low
income access healthy food, low income exercise barriers, and
similar. A good starting web site is:
http://www.frac.org/html/hunger_in_the_us/hunger&obesity.htm#lack