How Food Industry Lobbyists Keep the Food-Stamp Gravy Train Going

 The dynamics of the Supplemental Nutrition Assistance Program (SNAP), commonly known as the food stamp program, and how corporate lobbyists play a crucial role in sustaining and expanding its funding. It highlights the financial implications of food stamps on taxpayers and consumers, the economic behavior of SNAP recipients, and the influence of various industry groups in lobbying efforts.

1. Current Status of SNAP: The food stamp program is at risk of suspension unless Congress intervenes before November 1. Due to lobbyists' efforts, there is a strong push to maintain the program, which benefits around 41 million low-income Americans.

2. Rising Spending on Food Stamps: Monthly spending on food stamps has significantly increased, nearly doubling since 2008. The program primarily helps low-income households but also benefits food-related industries through increased demand for their products.

3. Corporate Influence: Various industries, including agricultural firms and food retailers, actively lobby Congress to ensure that SNAP remains funded and to increase its budget. This is because SNAP spending drives demand for their products, which then impacts food prices.

4. SNAP as Wealth Transfer: The article notes that SNAP operates as a wealth transfer mechanism from non-SNAP households to both the recipients of the benefits and food industry producers and retailers. The funds are perceived as separate from personal financial resources, leading to increased spending on food.

5. Impact on Food Prices: Studies indicate that SNAP spending increases food prices. This economic behavior mirrors trends seen in sectors influenced by government subsidies, such as education.

6. Corporate Welfare: The food stamp program, administered through the Department of Agriculture rather than typical welfare agencies, functions as both a welfare and a subsidy program. Historically, programs like SNAP were created to stabilize food prices and support agricultural producers.

7. Lobbying Dynamics: Over the years, food-related industries have significantly influenced lobbying efforts surrounding the SNAP program. Instead of only farmers, many other players, like banks and manufacturers, are now key stakeholders.

8. Opposition to SNAP Restrictions: Efforts to limit specific products, such as sugary beverages, from being eligible for SNAP have faced stiff opposition from coalitions of industry groups. These groups emphasize the potential economic harm to retailers rather than the health implications for low-income families.

9. Bipartisan Support for SNAP: Both Democratic and Republican lawmakers receive lobbying support from industry groups, ensuring that SNAP maintains wide-ranging support across the political spectrum.

10. Taxpayer Burdens: The article argues that taxpayers effectively subsidize food industry profits through SNAP, as they pay taxes that fund the program and face higher prices at grocery stores as a result of increased demand.

The article concludes that the food stamp program primarily serves as a means for large corporations, especially in the food and beverage sectors, to profit at the expense of taxpayers. It suggests that the real beneficiaries of SNAP are not just low-income families, but also the industries that supply these families with food, leading to a cycle of increased spending and higher prices for consumers. 

https://mises.org/mises-wire/how-food-industry-lobbyists-keep-food-stamp-gravy-train-going