The Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, expanded rapidly during the Great Recession, when millions of workers lost jobs and entered poverty, forcing them to turn to the government’s social safety net for help. But even as the economy has begun to recover, SNAP “isn’t shrinking back alongside the recovery,” the Wall Street Journal warned today.
States and the federal government both expanded SNAP access before and during the recession in an attempt to extend more aid to struggling Americans. That has led Republicans like Rep. Paul Ryan (R-WI) aching to cut the supposedly “unsustainable” program, since its costs and enrollment are both at record levels. In the piece, the Journal admits that “the biggest factor behind the upward march of food stamps is a sluggish job market and a rising poverty rate,” but it then asks whether those expansions have made the program far more costly over the long-run and wonders why SNAP enrollment hasn’t dropped along with unemployment rates:
The food-stamp rolls have swollen since 2008 and are projected to stay that way for years. In 2008, SNAP enrollment was 28.2 million. Unemployment peaked in October 2009 at 10% and was at 7.7% as of February, but SNAP kept growing.
The Congressional Budget Office predicts unemployment will drop to 5.6% by 2017 but that SNAP enrollment will drop slightly to 43.3 million people, down 4.5 million from the current level.
That makes it very different from the other big federal support program, unemployment insurance, which shrinks as the economy improves. Continued jobless claims dropped to 3.1 million in February after peaking at 6.6 million in May 2009.
Unemployment insurance enrollment has dropped because it is based on unemployment. SNAP, however, is based on income, which is why it tracks not with the unemployment rate but with poverty levels, as this chart from the Center on Budget and Policy Priorities shows:
That SNAP isn’t shrinking at the same rate as unemployment insurance isn’t exactly a shocking revelation, especially since 58 percent of the jobs created since the recession are in low-wage sectors that are less likely to pull workers out of poverty and off of food stamps. The poverty rate rose sharply after the recession, and it hasn’t dropped significantly since the recovery began. But for all the concerns about SNAP’s long-term costs, the program is projected to return to its return to its historical spending levels by 2023:
The Journal actually acknowledges that the expansions make little difference in the cost of the program, but not until the second-to-last paragraph. “The Congressional Budget Office said reinstating eligibility limits would save around $4.5 billion over 10 years, a fraction of the program’s total cost over that time,” it writes there, all but admitting that the reason SNAP expanded is not because the government made it easier to enroll but because the economy contracted and plunged millions of people into poverty. That, in short, is exactly what the program is supposed to do.More info on how conservatives lie about food stamps:
More sites that debunk the Wingnut Conservative lies about food stamps:
Is there a more sniveling, dishonest bunch of cretins than those in right-wing media?
(via brooklynmutt)
On Sunday, economist Paul Krugman hit back against GOP claims that public sector employment has increased under Obama, and that such jobs consist mainly of wasteful bureaucrats and somehow count less economically than private sector ones. Back in September it was tea party Senator Rand Paul (R-KY) toeing that line, and this morning it was former Republican gubernatorial candidate Carly Fiorina.
The exchange commenced immediately after Krugman made the point that, had government employment in the current recovery followed the same path it followed under previous recessions in the Bush and Reagan years, unemployment now would be slightly above 6 percent:
CARLY FIORINA: I think it’s important to remember, when we talk about the economy, that a private sector job and a public sector job are not the same things. They’re not equivalent. I’m not saying public sector jobs aren’t important. But a private sector job pays for itself. A private sector job creates other jobs. A public sector job is paid for by taxpayers. […]
PAUL KRUGMAN: But when we say public sector jobs, it is not a bureaucrat in Washington, D.C.
FIORINA: Oh, it is, actually.
KRUGMAN: When we talk about public sector jobs — when we look at the ones that have been lost in large numbers in this — it’s basically school teachers. Don’t think about bureaucrats. It’s school teachers. What we’ve laid off hundreds of thousands of school teachers.
And when we talk about the cuts in public spending that have happened, they are not, you know, some god awful who knows what. It’s actually public investment. It’s largely fixing potholes and repairing bridges.
So, you know, you have this image of these wasteful bureaucrats doing god knows what. What we’ve seen is an incredible drought of basic infrastructure, and laying off hundreds of thousands of school teachers.
FIORINA: It is a fact that virtually every department in every organization in Washington, D.C. has seen its budget increase for the last 40 years. That money is being paid to hire people. The number of people who are — of course there are some teachers…
KRUGMAN: The vast bulk of public sector employees are at the state and local level. They are largely school teachers plus police officers plus firefighters. And your notion that it’s all these bureaucrats — that’s a myth that’s used…
FIORINA: It’s not a myth, it’s a fact. It’s not a myth, it’s a fact. We don’t have enough private escort job creation.
It’s a myth. Public sector jobs at the federal level have actually remained pretty stable over the last forty years. They began and ended the period around approximately 2.8 million, with a bounce to about 3.1 million circa-1990. Public sector jobs at the state and local levels increased significantly over those forty years, peaking at a bit over 19 million total when President Obama entered office. (They’ve fallen since, accounting for the decline in overall public employment.) But nearly all of that growth was in teachers and support staff for the education system, who now total nearly 7 million of those state and local workers.
The other major categories of jobs in state and local public employment are, as Krugman noted, police, firefighters, health care workers, and maintenance workers and drivers for the country’s transportation infrastructure. And the overall population of the country has also been growing, so even though the raw number of state and local workers increased significantly, the ratio of those workers to the overall population did not — 59 per 1000 in 1980 versus 65 per 1000 today.
According to the latest data from the Bureau of Labor Statistics, the economy added 157,000 jobs in January, with the unemployment rate ticking up slightly to 7.9 percent. Economists expected an increase of 170,000 jobs. The private sector added 166,000 jobs, while the public sector lost another 9,000 jobs.
BLS revised the number of jobs created in November up by 86,000 to 247,000, and December was revised up by 41,000 to 196,000. Due to revisions done to the 2012 numbers, 181,000 jobs per month were created last year, higher than previously thought.
The wider U-6 measure of underemployment held steady at 14.4 percent. 38.1 percent of the unemployed have been out of work for six months or more, a slight drop from December.
Sen. Dianne Feinstein (D-CA) urged lawmakers to embrace a package that could avert the so-called fiscal cliff, noting that 2.1 million Americans have already lost federal unemployment benefits as a result of Congressional inaction. “From this point on, it is lose-lose,” Feinstein explained, during an appearance on Fox News Sunday.
Indeed, the National Employment Law Project, a worker advocacy group, projects that “more than 2 million Americans will stop receiving benefits after Dec. 29, when the federal Emergency Unemployment Compensation program will cease to exist.” The benefits have kept 2.3 million out of poverty last year alone, and the Congressional Budget Office projects that a full, year-long extension would lead to the creation of 300,000 new jobs.
The initiative requires recipients to search for a job while receiving payments, and one study found that unemployment recipients search harder for jobs than those who are not receiving money from the program.
I have some sound advice to you, Mr. Fat Turdbreath: STFU!
The U.S. economy added an estimated 171,000 jobs in October, according to the Bureau of Labor Statistics monthly employment report released Friday — exceeding analysts expectations, and sparing President Obama from lackluster economic news days before the election
The figures suggest a strengthening labor market, and include significant upward revisions to previous months’ employment estimates. BLS now estimates that the economy added an impressive 192,000 jobs in August, up 50,000 from a primary September revision and up even more from the initial, weak August estimate of 96,000. Likewise, BLS estimates that the economy added 148,000 jobs in September, up 34,000 from its initial estimate of 114,000.
Those revisions reflect an accelerating recovery, but also illustrate the report’s significant uncertainty. That uncertainty hasn’t stopped members of both parties from spinning the initial figures for partisan advantage. The report comes just four days before polls open Tuesday, lending additional salience to the unemployment rate, which ticked upward from 7.8 to 7.9. for the promising reason that over 578,000 people entered the work force.
Growth was strongest in professional services, health care, and retail trade, which added 51,000, 31,000, and 36,000 jobs respectively.
h/t: Brian Beutler at TPM
Right-wing media, led by the Drudge Report, are pushing a conspiracy theory that the Labor Department will use Hurricane Sandy to delay releasing October jobs data until after the election. This scaremongering is a continuation of the right-wing conspiracy theory that the government is manipulating economic data to help re-elect President Obama.
The Bureau of Labor Statistics is scheduled to release October jobs data, including the official unemployment rate, on Friday — days before the presidential election. But Labor Department officials have reportedly said that it will be difficult for economists to access the employment data, which can only be accessed on site, as long as the federal government is shut down due to the storm.
An October 29 Wall Street Journal blog post quoted a spokesman for the Bureau of Labor Statistics saying that the bureau would assess the situation after the storm passes and notify the public if it needed to change its release schedule.
In a subsequent statement released on Monday, the Labor Department said, “The employees at the Bureau of Labor Statistics are working hard to ensure the timely release of employment data on Friday, November 2. It is our intention that Friday will be business as usual regarding the October Employment Situation Report.”
Drudge called the possible delay a “mystery,” while Fox Nation deemed it “outrageous”.
And, as reported by The Hill, there is no mystery surrounding a possible delay: it’s a simple fact that BLS analysts cannot access the data as long as the federal government is shut down.
Contrary to the conspiracy theories surrounding a possible delay, there is nothing unprecedented about weather emergencies delaying the monthly jobs report. In January, 1996, The New York Times reported that “a paralyzing blizzard” caused the Labor Department to delay release of the monthly jobs report by a week.
Nor is the Labor Department alone in facing possible delays due to Hurricane Sandy. According to The Wall Street Journal, major companies have said the storm will force them to delay quarterly earnings reports.
The lengths to which our conservative establishment goes to bury Obama in mud often resemble D-Movie spy plots that set new standards for implausibility.
The frequency and outlandishness of their conspiratorial imaginations grows in sync with their desperation. With Obama leading in most polls and the election season drawing to a close, it seems like a good time to recap some of the more ludicrous conspiracies hatched by our conservative fearmongers. So with our tin-foil hats securely strapped on, let’s venture down the primrose path of hair-raising hypotheses.
1. Cooking the Unemployment Rate
The most recent crackpottery of the right was revealed last week as new unemployment numbers were released. The new data put the unemployment rate at 7.8%, the lowest it has been since the Bush administration helped crater the economy on their way out of town. Almost immediately, right-wingers declared that the numbers were manufactured by Obama’s henchmen in the Labor Department. Never mind the fact that the Bureau of Labor Statistics is an independent body that currently has no Obama appointees serving. That didn’t stop conspiracists like Jack Welch from alleging that they are “Unbelievable jobs numbers..these Chicago guys will do anything..can’t debate so change numbers.” That unsubstantiated charge was adopted by Rep. Allen West, Fox News’ Stuart Varney, and much of the rest of the right-wing media circus.
2. The Media is Skewing the Polls
For several weeks now, Obama has maintained a steady lead in election polling. That fact has been difficult for conservatives to square with their conviction that Obama is the most hated man in America. Consequently, they must conclude that all of the polls have been tampered with by scheming liberals. However, for their conspiracy to be credible, they would have to include Fox News and Rasmussen amongst the conniving lefties because their polling also puts Obama in the lead. One way they have found to workaround that inconvenient fact is to ignore the polls that challenge their thesis. Therefore, Fox News simply neglects to report on polls that show the President leading – even their own Fox News polls.3. Politicizing the Stock Market
In a year when the economy is such an integral part of the news cycle, conservatives have found it necessary to glom onto any factoid that they can use to bash the President. That manifests into a frenzy of spin that casts any decline in the stock market as the fault of Obama, and any increase as investor speculation that Obama is on the way out. Last week, many of the right-dominated business networks feebly described a positive day for the Dow as a Romney rally, simply because it occurred on the day after the presidential debate. There is a long history of the right making idiotic assessments of the stock market. In May of 2009, Fox News anchor Brenda Buttner gushed, “Call it a tea party rally. Wall Street’s sure partying, up six weeks in a row.” In September of 2011, Fox Nation reported “Stocks Tumble Worldwide After Obama Speech.” Then in June of 2012, they fantasized that “Stock Market Drops After Obamacare Upheld.” Fox’s Neil Cavuto hosted a discussion of what he called the “Bush recovery” nine months into Obama’s term. What they commonly miss is that markets traditionally perform better under Democratic administrations than Republicans.4. Obama is Coming for Your Guns
This conspiracy theory takes a considerable measure of willful suspension of disbelief. The National Rifle Association has alerted its members that a second Obama term will result in the repeal of the second amendment and a wholesale confiscation of guns. Their evidence of this is that Obama has done nothing at all to roll back gun rights during his first term. That, they surmise, is a devious trick to lull gun rights advocates into a false sense of security. Then, when Obama is no longer facing a reelection campaign, he will be free to curtail all of our precious liberties.6. The Muslim Mole in the Secretary of State’s Office
A longtime aide to Hillary Rodham Clinton was accused by conservatives of having ties to the Muslim Brotherhood. Huma Abedin has worked with Clinton for many years as a trusted and effective public servant. No evidence was given for the repugnant allegations that cast her as a traitorous double agent. She is also married to former Rep. Anthony Weiner, who is Jewish and unlikely to be affiliated with Muslim extremists. But that didn’t stop Rep. Michele Bachmann who said, “it appears that there are individuals who are associated with the Muslim Brotherhood who have positions, very sensitive positions” in our government. She was joined by other prominent conservatives like Newt Gingrich and Frank Gaffney. This conspiracy dove-tails nicely with those alleging that Obama is a Muslim plant as well.7. Fact-Checkers Are A Liberal Plot
Creative and shameless conservatives are establishing a new and unique front in the political war zone. Not satisfied with bashing everything about the media (despite the fact that talk radio and their own Fox News are a huge part of it), the wackoids on the right have declared war against – get this – Fact-checkers! This may seem wildly deranged, but upon reflection it makes perfect sense. If your entire movement is built on a foundation of lies, then fact-checkers are your mortal enemy. This became clear a few weeks ago when Neil Newhouse, a Mitt Romney adviser, publicly declared that “We’re not going to let our campaign be dictated by fact-checkers.”Since then they have disputed or ignored every challenge of their truthfulness. The result is a record setting collection of dishonorable mentions from PolitiFact and other media lie detectors.8. The Secret Behind The Gulf Oil Spill
When millions of barrels of oil were pouring into the waters of the Gulf of Mexico, most Americans were disturbed by the devastating environmental damage and the negligence of the company operating the drilling platform. But conservatives led by Rush Limbaugh saw through the scheme and revealed that the massive malfunction was actually a deliberate act of sabotage devised to create a justification for eliminating all off-shore drilling.9. Obamacare’s Death Panels
No list of conspiracy theories would be complete without a mention of Sarah Palin’s “death panels.” (Although the non-existant “death panels” have been roundly mocked, this did not stop Presidential candidate Mitt Romney from basically reviving them at last week’s debate. )These nefarious groups were said to have the power to decide whether your grandmother would live or die based on her level of productivity to society as determined by a team of government bureaucrats. In reality the section of the Affordable Care Act to which Palin referred actually provided for coverage to pay for end-of-life counseling. These were voluntary sessions to help patients determine and document what sort of life-saving measures they preferred in the event that they were incapacitated and unable to communicate their wishes to their doctors. When that proved to be an embarrassing misinterpretation of the law, conservatives switched to another section of the bill, the Independent Payment Advisory Board, and called that the death panel. However, the IPAB was simply a board that assessed the best practices in medicine and made non-binding recommendations in order to prevent excessive billing and unnecessary procedures. Palin was awarded the “Lie of the Year” award from PolitiFact for her imaginary panel.
10. The Green Plot to Enslave the World
Conservatives have never taken to science. So it should come as no surprise that many of them regard global warming as a hoax whose purpose is to enrich Al Gore and a few socialist wind farmers. But there is another faction of the anti-environment movement that has uncovered something even more dastardly lurking behind the effort to maintain a clean, sustainable planet.Agenda 21, a little known and non-binding resolution adopted by the United Nations is viewed by some on the right as an attempt to control the lives of people throughout the world by regulating everything they do.
H/T: Alternet
Ezra Klein at WaPo: September jobs report: Debunking the jobs report conspiracy theories
We’ve hit that moment in the election when people begin to lose their minds. Case in point, within minutes of the jobs report, Twitter filled with Republicans claiming the books were somehow cooked, the numbers aren’t real, etc.
Let’s take a deep breath. Jobs reports are about the economy, not about the election. Confusing the two leads to very bad analysis.
This is a good jobs report in a still-weak economy. The 114,000 jobs we added in September aren’t very impressive. The revisions to the last two months, which added 86,000 jobs to the total, were much more impressive. Those revisions also suggest that September’s jobs could get revised up — or, of course, down. So be careful about reading too much into that number. Still, these are, at best, good, not great, numbers.
The controversy, if it’s worth using that word, is over the unemployment rate, which dropped from 8.1 percent to 7.8 percent. That’s three-tenths of one percent. That’s what all the fuss is about.
Let’s get one thing out of the way: The data was not, as Jack Welch suggested in a now-infamous tweet, manipulated. The Bureau of Labor Statistics is set up to ensure the White House has no ability to influence it. As labor economist Betsey Stevenson wrote, “anyone who thinks that political folks can manipulate the unemployment data are completely ignorant of how the BLS works and how the data are compiled.” Plus, if the White House somehow was manipulating the data, don’t you think they would have made the payroll number look a bit better than 114,000? No one would have batted an eye at 160,000.
U6 is not an unemployment measure. It includes part-time workers who want full-time work. So it doesn’t count the increase in part-time work. But every measure of actual unemployment — U1, U2, U3, U4, and U5 — went down. You can see them all here. Again, there’s no mystery.
This is an encouraging report. What it tells us is that the labor market has been a bit better over the last few months than we thought, and that the recovery hasn’t slowed in the ways we feared. What the response to it tells us is that the election is driving people a little bit crazy.
The U.S. economy added 114,000 jobs in September, according to the Bureau of Labor Statistics, in line with analyst expectations and comparable to an initially disappointing August figure, which was revised significantly upward Friday from 96,000 to 142,000.
Despite a modest topline payroll figure, the report is filled with positive metrics — most visibly that the unemployment rate plummeted from 8.1 to 7.8 percent, about where it was when President Obama took office, amid the 2008 and 2009 economic collapse. In past months, reductions in the unemployment rate have been attributed to a shrinking workforce, but the September report indicates a 418,000 person increase in labor force participation.
The initial figures come less than 48 hours after the first presidential debate in Denver — a development that’s likely to overshadow third day stories about President Obama’s underwhelming performance. It’s also the first employment report since the Federal Reserve announced a new, open-ended round of monetary stimulus last month.
But the news also has political implications. Last month, the Department of Labor released broader revisions which pointed to the fact that more jobs had been created during the recover than had been lost in the slump — putting Obama into net positive job creation territory over the course of his presidency. Friday’s report builds on that record.
The significant downward tick in unemployment also moots a favored Republican talking point — that the unemployment rate has not dropped below 8 percent since it first climbed above that level early in Obama’s presidency.
H/T: Brian Beutler at TPM