Economics and Nutrition

Begin by watching the poverty tour at the following website:

http://www.usccb.org/cchd/povertyusa/tour.htm

#2 Mississippi

#5 Alabama

#7 Oklahoma

#1 District of Columbia

#6 Texas

#9 Arizona

#4 New Mexico

Top Ten Impoverished areas

#8 W. Virginia

1. District of Columbia

2. Mississippi3. Louisiana4. New Mexico5. Alabama6. Texas7. Oklahoma8. West Virginia9. Arizona10. S. Carolina

#3 Louisiana

#10 S. Carolina

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 current poverty threshold calculations are at:

Without counting other taxes, the Holt family is at 90% of the poverty threshold

http://aspe.hhs.gov/POVERTY/09poverty.shtml

The 2009 Poverty Guidelines for the 48 Contiguous States and the District of Columbia

Persons in family Poverty guideline1 $10,8302 14,5703 18,3104 22,0505 25,7906 29,5307 33,2708 37,010

For families with more than 8 persons, add $3,740 for each additional person.

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 2-parent household

Families on welfare were entitled to monthly wages, housing benefits, food stamps and health insurance. A minimum-wage-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 Programis 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

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.

http://www.fns.usda.gov/fsp/applicant_recipients/fs_Res_Ben_Elig.htm

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

Snap use held steady for a few years then began to surge as the economy worsened. Notice the monthly

benefits – about $56 per week.

This chart shows the changes in SNAP benefit use since 2005

Record 31.8 million on food stampsGovernment shows increase of 700,000 food stamp recipients in a single monthMarch 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

-Traditional poor

Children of single parents

Single mothers

The elderly

-New poor

Individuals and families experiencing extended periods of unemployment

Currently, we are finding some new definitions for poverty:

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

Food quality is decreased to the point that the adults in the family are frequently hungry

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 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.

Households with Income:Under 100% of Poverty 35.1%100% to Under 130% of Poverty 26.4%Under 130% of Poverty 32.5%130% to Under 185% of Poverty 20.6%Under 185% of Poverty 28.6%At Least 185% of Poverty 4.9%

Food Insecurity Rate by Income

10 worst states for food insecurity

Rank and State % Food insecure

1. Mississippi 18.1

2. New Mexico 16.1

3. Texas 15.9

4. South Carolina 14.7

5. Oklahoma 14.6

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