In a recent analysis of President Obama’s fabulous reelection victory, I argued that one of the reasons he won was his unprecedented use of existing (and new) federal governmental giveaway programs — he played the game of buying votes with taxpayer dollars like no one before him. But the extent of this gargantuan giveaway spree is only now becoming clear.
Take just two of the programs he expanded. First, food stamp programs exploded in size — by 15 million people. The record was set in the year of his reelection. During fiscal year 2012, the main food stamp program — the Supplemental Nutrition Assistance Program (“SNAP” . . . a snappy name, indeed!) — spent a record $80.4 billion, up a whopping $2.7 billion from the year before. (SNAP was spending “only” $55.6 billion when Obama took control, so he raised it by nearly two-thirds.)
When you add in all the other nutritional programs — such as the $18.3 billion spent on the second main food stamp program, the “Child Nutrition Program” — total food stamp spending hit a total of $106 billion.
In the year before the election, the Obama administration aggressively advertised these programs, to increase the number of recipients — no doubt under the theory that people who get the freebies would gratefully vote for the regime that gave them. This was public choice economics of the crudest variety.
Left unexplained by the Obama administration is why such a massive increase in food stamp usage was necessary, given the vibrant, no, glorious economic recovery brought on by its stupendous spending programs.
Also left unexplained is why if people are really needy you need to advertise to them. Everyone has surely heard of food stamps, so is the advertising here intended to amplify the demand?
Another recent report out of New York informs us that at least our tax dollars are being well spent. Welfare recipients are using their Electronic Benefit Cards — really, they don’t so much get welfare checks anymore as pre-paid credit cards — at some fun places, such as bars, porn video stores, liquor shops, and strip clubs. Yes, the cash assistance program of the federal Temporary Assistance for Needy Families program has a “cash assistance” program (programs within programs, like Russian dolls) that allows recipients to pull as much as $668 in food stamps, and $433 in cash, each month. The cash can be spent at bars, booze shops, and sex shops.
Finally, let’s turn to the Federal socialist student loan program, nationalized under the Obama administration, so that 93% of all student loans are in effect given out by this administration. The program ballooned by 4.6% in the last quarter before the election, a whopping $42 billion rise — in just three months. Now standing at over a trillion bucks, student loan debts exceed those for auto loans, credit cards, and home equity loans.
This debt is beginning to get problematic for those holding it — delinquency rates are way up. Loan payments that were 90 days past due recently hit 11%, higher than the percentage for credit cards.
But all this has served the purpose of electing Democrats, so the administration has good reason for its current fit of self-congratulation.