Friday, September 20, 2013

GOP Cuts Food Stamps


Food stamp cuts will effect children like this. (photo: Salvation Army)
Food stamp cuts will effect children like this. (photo: Salvation Army)

House Passes GOP Plan to Slash Food Stamp Funding

By Ed O'Keefe and Niraj Chokshi, The Washington Post
20 September 13

he House narrowly approved a far-reaching overhaul of the nation's food-stamp program Thursday that would slash food aid to about 4 million Americans over the next few years and shift a greater burden of taking care of the poor to state governments.
The Republican-backed plan, which would cut about $39 billion in funding for food-stamp programs over the next decade, differs sharply from a bipartisan Senate proposal passed in June, and its passage is likely to further strain relations between the two chambers as they prepare to spend the next several weeks battling over a short-term budget deal and raising the federal debt limit.
The legislation passed Thursday is of a piece with the looming battles as it represents House Republicans' effort to pare the cost and size of government by reducing federal spending.
Thursday's vote represented a victory for House Majority Leader Eric Cantor (R-Va.), who embraced a strategy this summer that split apart the farm bill to consider funding for food stamps, formally known as the Supplemental Nutrition Assistance Program, separately from legislation authorizing crop subsidies and a revamping of many agricultural and conservation programs.
Cantor said the deep cuts enacted Thursday were necessary because while most SNAP recipients need the assistance, there are many people who abuse the system.
"Frankly, it's wrong for hardworking, middle-class Americans to pay for that," Cantor said.
Rep. Tim Huelskamp (R-Kan.), a strong supporter of the bill, said that stiffer work requirements for certain adults applying for SNAP funds mean "you can no longer sit on your couch ... and expect the federal taxpayer to feed you."
The House voted 217 to 210 to approve the measure. Fifteen Republicans joined with all of the Democrats present to vote against the plan.
Passage of the bill means that the House can begin negotiations with the Senate over a final version of the farm bill, which would once again merge food aid with other agricultural policy.
But Senate Majority Leader Harry M. Reid (D-Nev.) , in a long speech on the Senate floor Thursday, rejected the GOP approach, saying that Republicans had "turned their backs" on low-income families in hopes of making budget cuts.
Citing his own trips to the grocery store with his wife, Landra, Reid said that proposed reductions in SNAP funding would make it difficult for some recipients to purchase ground beef and milk in the same shopping trip.
In the House, Democrats used the hours before the vote to criticize Republicans for the funding reductions. They repeatedly cited an op-ed by former Senate majority leaders Thomas A. Daschle (D-S.D.) and Robert J. Dole (R-Kan.) published Monday in the Los Angeles Times that said "this is no time to play politics with hunger."
According to the Census Bureau, almost 14 percent of households in the United States received food stamps in 2012, a total of 16.6 million households. Almost half the recipients, 48 percent, are non-Hispanic whites; 26 percent are black and 21 percent are Hispanics.
The five states with the biggest share of people on food stamps are, in descending order, Mississippi (19 percent) and Kentucky, Maine, Michigan and Tennessee, all at 18 percent. The five states with the smallest share of households getting food stamps are Minnesota and California (each at 9 percent), New Hampshire and North Dakota (each at 8 percent) and Wyoming (7 percent).
Brandishing a cooked steak, bottle of vodka and can of caviar on the House floor, Rep. Jackie Speier (D-Calif.) suggested that money spent by lawmakers on official overseas travel could easily help pay for food stamps. She cited one lawmaker who reportedly received more than $3,500 to spend on food and lodging during a six-day trip to Russia - roughly equal to a year's worth of SNAP funding for some recipients, she said.
The House bill would cut overall SNAP spending by slightly more than 5 percent over the next decade, largely through two provisions that would significantly affect states.
The first accounts for roughly half the cuts and reinstates limits for many able-bodied, childless adults aged 18 to 50. As a result, 1.7 million people would lose benefits next year, the nonpartisan Congressional Budget Office reported Monday. Under federal law, those able-bodied adults are able to collect only limited benefits - up to three months over a three-year period - unless they work more than 20 hours per week or are in a job-training program.
In recent years, however, as the economic recession grew deeper, the vast majority of states have qualified for waivers on those limits. All but one qualified in fiscal 2011, and 46 states were eligible in fiscal 2012. Forty-four states qualified for fiscal 2013, which ends this month. The House provision would reduce the number of available waivers. Many states with Republican governors, such as Alaska, Arizona, Iowa, Texas and Wisconsin, applied for waivers for all or parts of their states this year.
But not all states will continue to seek the waivers. In a statement earlier this month, Kansas announced that "in an effort to encourage employment over welfare dependency," it would allow its waiver to expire at the end of the month. The action would drop an estimated 20,000 people from the program. Several states have indicated that they do not plan to seek renewal of their waivers, including Ohio, which announced its stance this month.
But while those states argue that reinstating the work requirements will encourage able-bodied, childless adults to get back to work, critics point to what has been a plodding and uneven recovery in jobs, marked by historically high rates of long-term unemployment.
"Really it's a punishment for the status of being jobless," says Ellen Vollinger, legal director at the Food Research and Action Center, a nonprofit advocacy group.
To reduce the burden of figuring out who qualifies for benefits, states are allowed to determine a person's eligibility for the program based in part on whether they qualify for other low-income benefits. The House measure passed Thursday would restrict that "categorical eligibility," resulting in $11.6 billion in cuts, according to the CBO.
It may also mean higher costs to figure out who can receive aid. In May, the bipartisan National Conference of State Legislatures argued that a similar proposal would increase administrative costs for already cash-strapped states.
"This limitation in categorical eligibility would increase state administrative costs in SNAP and significantly curtail state flexibility," the NCSL wrote in the letter. By forcing states to determine eligibility separately, the House bill creates new costs they must bear, the organization argued.
 

Thursday, September 19, 2013

Gorging on Caviar While Cutting Food Stamps (SNAP)


Congresswoman Uses Steak, Vodka, And Caviar To Hammer Republicans On Food Stamp Cuts

“They received almost $200 for a single meal only for themselves. Yet, for them the idea of helping fellow Americans spend less than $5 a day makes their skin crawl.”posted on 
Democratic Rep. Jackie Speier decided to make an unconventional pitch on the House of Representatives floor Thursday to defend food stamps. Speier used a cooked steak, a bottle of vodka, and a can of caviar to point out members of Congress who had large numbers of Supplemental Nutrition Assistance Program (SNAP) recipients in their districts but opposed the program. The congresswoman pointed out many of the same members of Congress took trips around the world with large stipends for food and lodging.
They receive money to do this. That’s right, they don’t pay out of pocket for these meals.”
“In my district, California 14, we have about 4,000 families who are on food stamps, but some of my colleagues have thousands and thousands more,” Rep. Speier said. “Yet, they somehow feel like crusaders, like heroes when they vote to cut food stamps. Some of these same members travel to foreign countries under the guise of official business. They dine at lavish restaurants, eating steak, vodka and even caviar. 
Speier went on, using particular examples of members of Congress who went on sponsored trips and spent large amounts of money on food and lodging.
“Let me give you a few examples: One member was given $127.41 a day for food on his trip to Argentina. He probably had a fair amount of steak,” she said.
“Another member was given $3,588 for food and lodging during a six-day trip to Russia. He probably drank a fair amount of vodka and probably even had some caviar. That particular member has 21,000 food stamp recipients in his district. One of those people who is on food stamps could live a year on what this congressman spent on food and lodging for six days,” she added.
“Another 20 members made a trip to Dublin, Ireland. They got $166 a day for food. These members didn’t pay a dime. They received almost $200 for a single meal only for themselves. Yet, for them the idea of helping fellow Americans spend less than $5 a day makes their skin crawl. The families of veterans, of farmers, of the disabled, of the working poor are not visible to them, not even when they are their own constituents.”
In a previous article, BuzzFeed pointed out many of the Republican members of Congress leading the charge to limit the food stamp program represented large numbers of food stamp recipients.
A quick BuzzFeed search found that the member of Congress who took the trip to Argentina who spent $127 was Rep. Frank Lucas of Oklahoma and the trip wassponsored by the Franklin Center. The member of Congress who took the trip to Russia was Rep. Steve King of Iowa. The 20 members of Congress who went to Dublin can be found here. The trip, sponsored by the Franklin Center, had an estimated budget of $450,000 to $750,000 according to Roll Call.

Monday, September 16, 2013

Films on Financial Free Fall


Six Films on the Financial Crisis
Given a theme as dramatic and consequential as America’s financial collapse, many filmmakers have risen to the challege of going behind the headlines to tell important stories and make critical points that need to be shared if we’re to learn anything from the crisis. Below are some of those important movies and documentaries. Please share your own favorite financial-themed films in the comments below.

Margin Call 
(2011)
Margin Call, directed by J.C. Chandor, focuses on crises of conscience — and lack thereof — behind investment banking and the financial meltdown. Chandor’s original screenplay is up for an Academy Award.

Too Big To Fail
 (2011)
Based on the Andrew Ross Sorkin book of the same name, Too Big To Fail provides a dramatized account of the closed-door wheelings and dealings of government officials and banking executives in the fall of 2008 that left Lehman Brothers bankrupt, AIG a ward of the state, and the American taxpayer footing the bill for a $700 billion bailout. At one point the head of PR for the Treasury (played by Cynthia Nixon) asks “What should I tell the press?” providing a perfect opportunity for a primer on how the mortgage meltdown dominoed into the crisis at hand.

Inside Job
 (2010)
Charles Ferguson’s Inside Job, winner of the 2011 Academy Award for Best Documentary feature, takes a hard look at the 2008 financial crisis, featuring challenging interviews with the bankers, politicians, global leaders, academics and journalists who witnessed the crisis — and its origins — up close. Matt Damon narrates the film.

Frontline: The Warning
 (2009)
The Warning tells the story of Brooksley Born, who headed the Commodity Futures Trading Commission in the late 1990′s. Born foresaw the economic disaster and tried to encourage greater oversight and regulation to keep it at bay, but encountered opposition from financial titans with enormous power and influence who lobbied hard to keep the market free from government intervention. Though nobody listened to Born, we all now know how that worked out.

The Flaw 
(2010)
David Singleton’s visually-arresting documentary kicks off with a clip of former Federal Reserve Bank Chairman Alan Greenspan testifying before Congress in October 2008. He tells Congressman Harry Waxman (D-CA) that he “found a flaw” in the model that defines how the world works. And with that, a stream of engaging economists, journalists, Wall Street bankers and traders go on to “Monday morning quarterback” the financial crisis, pointing out warning signs that were missed and analyzing the demise of 1990s stock market and 2000s real estate bubbles.

Enron: The Smartest Guys in the Room
 (2005)
Based on expert reporting by Bethany McLean and Peter Elkind, Enron: The Smartest Guys in the Room is Alex Gibney’s eye-opening case study of Enron’s 1985 rise and 2001 demise, one of the biggest criminal financial scandals in U.S. history. It’s a remarkable story, well revealed by the filmmakers through in-depth interviews, personality profiles, and key TV footage, of how American business gets done, gets compromised, gets corrupted, gets covered up, and — sometimes — gets prosecuted.

FROM THE SHOW



NSA Spies on Foreign Bank Financial Flows


In 2011, the NSA possessed 180 million records through its





In 2011, the NSA possessed 180 million records through its "Follow the Money" branch. (photo: Alliance/DPA)


Snowden Files | 'Follow the Money':   N.S.A. Spies on International Payments

By Der Spiegel (Leading German Journal)

The United States' NSA intelligence agency is interested in international payments processed by companies including Visa, SPIEGEL has learned. It has even set up its own financial database to track money flows through a "tailored access operations" division.
he National Security Agency (NSA) widely monitors international payments, banking and credit card transactions, according to documents seen by Der SPIEGEL.
The information from the American foreign intelligence agency, acquired by former NSA contractor and whistleblower Edward Snowden, show that the spying is conducted by a branch called "Follow the Money" (FTM). The collected information then flows into the NSA's own financial databank, called "Tracfin," which in 2011 contained 180 million records. Some 84 percent of the data is from credit card transactions.
Further NSA documents from 2010 show that the NSA also targets the transactions of customers of large credit card companies like VISA for surveillance. NSA analysts at an internal conference that year described in detail how they had apparently successfully searched through the US company's complex transaction network for tapping possibilities.
Their aim was to gain access to transactions by VISA customers in Europe, the Middle East and Africa, according to one presentation. The goal was to "collect, parse and ingest transactional data for priority credit card associations, focusing on priority geographic regions." In response to a SPIEGEL inquiry, however, a VISA spokeswoman ruled out the possibility that data could be taken from company-run networks.
The NSA's Tracfin data bank also contained data from the Brussels-based Society for Worldwide Interbank Financial Telecommunication (SWIFT), a network used by thousands of banks to send transaction information securely. SWIFT was named as a "target," according to the documents, which also show that the NSA spied on the organization on several levels, involving, among others, the agency's "tailored access operations" division. One of the ways the agency accessed the data included reading "SWIFT printer traffic from numerous banks," the documents show.
But even intelligence agency employees are somewhat concerned about spying on the world finance system, according to one document from the UK's intelligence agency GCHQ concerning the legal perspectives on "financial data" and the agency's own cooperations with the NSA in this area. The collection, storage and sharing of politically sensitive data is a deep invasion of privacy, and involved "bulk data" full of "rich personal information," much of which "is not about our targets," the document says.