Welfare Queens and Cadillacs

This is not what I think of when I think of hunger in America:

"At first, I thought, 'Why should I be on food stamps?'" said Magida, digging into her dinner. "Here I am, this educated person who went to art school..."

Yeah, art school. Part of me wants to be snarky -- I thought art school grads lived off their parents? But I do realize that young, educated, single people are among the poor, and of course, we shouldn't starve the poor.

The American food stamp program has had a few overhauls since it began in 1962. For example, the program no longer uses stamps. Instead it uses a specialized debit-card system. The eligibility requirements have also changed recently. As part of last year's stimulus package, more able-bodied adults without dependents qualify for the program.

And they're using it... maybe not as sustenance but as a supplement. The hipsters are buying Japanese eggplant, mint chutney, fresh turmeric... suddenly I don't feel like much of an elitist. I survive on macaroni and cheese (but the really good kind of macaroni and cheese).

I think this is the type of news story that's going to outrage many talk radio hosts for hour upon bloviating hour. But here's the dilemma I see: If recipients buy gourmet ingredients, the food is viewed as a luxury. If they spend their allotment on Hot Pockets and Pringles, they're part of the obesity epidemic and will likely contribute to higher health care costs down the road. It's a catch-22 for the Millennial generation.

But it might just replace the old Republican story of the Cadillac driving welfare queen.

Turn Off The Cameras, I Want To Be A Douche

This is an interesting video of Bush talking about the economy. Notice at the beginning he says "There is no question, about it. Wall Street got drunk... that's one reason I asked you to turn off TV cameras..."



Why the sudden consciousness of his image? I think everybody is quite aware of his smugness by now. Remember this video? And this video?

Speaking of the economy and smugness, are you aware that the former chief executive of AT&T, Ed Whitacre, was "probably the most exploited worker in American history"? At least according to Phil Gramm who lamented in a WSJ interview that Whitacre retired with only a $158 million pay package.

Bush and Gramm might want to sit down and review the hunger in America videos if they even give a damn.

Food Fight

From The Wall Street Journal today:

World Bank President Robert Zoellick warned in a recent speech that 33 countries are at risk of social upheaval because of rising food prices. Those could include Indonesia, Yemen, Ghana, Uzbekistan and the Philippines. In countries where buying food requires half to three-quarters of a poor person's income, "there is no margin for survival," he said.

Global food prices have increased 83% in the last three years. Recently, riots over soaring food prices have broken out in Egypt, Cameroon, Ivory Coast, Haiti, Senegal and Ethiopia. Last week's food riots in Haiti quickly segued into a political mine field.

The diversion of food to biofuels is one source of the rising prices. I touched on this in my previous blog post Black Gold, but it's worth repeating how these renewable fuels will result in higher food prices around the world:

When the production of corn intended for human or animal consumption decreases, prices go up. Why does this local shift in policy affect food prices around the world? The diversion of American corn into energy has a ripple effect for two reasons: First, the United States is the world's largest corn exporter, accounting for about 40 percent of global trade, so when corn-as-food production decreases here, costs go up everywhere. Second, when the price of corn increases, farmers in the United States, Europe, and elsewhere who use the crop to feed livestock look for cheaper alternatives, like wheat or sorghum. These alternatives, in turn, become more expensive.

Another source of rising food prices is global warming. From The Toronto Star: "Climate change is also making its toxic contribution. Major droughts have hit wheat-producing nations such as Australia and Ukraine, leading to a 30-year low in the world's wheat inventories."

A third reason for higher food prices is that fast-developing nations in Asia are demanding more and better food.

The U.S. is not immune to rising food costs. In the last year, milk prices are up by 26%, eggs by 24%, and bread by 13%. And yes, there is hunger in America. Our government estimates that 28 million people will be using food stamps this year. This is the highest level since the program began in the 1960's. Meanwhile, our federal farm program pays $1.3 billion to people who don't farm.

I predict we'll be hearing less and less about the so-called obesity epidemic.