Are welfare and food stamps recipients trying to live like Beyonce? Yes or No? The answer is yes. At least, this is what a newly released report seems to suggest. According to an analysis released by Deutsche Bank, a Wall Street mega bank and monitored on marketwatch.com, the lowest-income families in America spend 40% of their money on luxury goods. Surprise, surprise. The report revealed that “the lowest-income families (the bottom fifth of earners) spend 40% on luxuries and 60% on necessities, according to the study’s author, Torsten Slok, chief international economist for Deutsche Bank Securities.”
This report will come as a big surprise to millions of Americans. For the millions of low income Americans whose lives depend on snap, commonly known as food stamps, and welfare benefits, this report is not only shocking but also upsetting. This is because most Americans who receive food stamps and welfare benefits are clearly struggling to find jobs and put food on the family table. Even with the snap or welfare benefits, the millions of Americans who receive them are still struggling to put a roof over their heads and make ends meet. So how are they able to spend 40% of their low incomes on luxury goods and literally live like Beyonce?
Snap – How Many Americans Live on Snap or Food Stamps?
According to the United States Department of Agriculture, the Supplemental Nutrition Assistance Program or SNAP “offers nutrition assistance to millions of eligible, low-income individuals and families and provides economic benefits to communities. SNAP is the largest program in the domestic hunger safety net. The Food and Nutrition Service works with State agencies, nutrition educators, and neighborhood and faith-based organizations to ensure that those eligible for nutrition assistance can make informed decisions about applying for the program and can access benefits. FNS also works with State partners and the retail community to improve program administration and ensure program integrity.”
Clearly, food stamps and welfare benefits are of critical importance to America. It’s life or death to millions of American families. In President Donald Trump’s recent State of the Union address to the U.S Congress, he passionately emphasized that “Ninety-four million Americans are out of the labor force. Over 43 million people are now living in poverty, and over 43 million Americans are on food stamps. More than one in five people in their prime working years are not working. We have the worst financial recovery in 65 years.”
Snap – Food Stamps, Welfare Benefits, Debt and Gucci Bags?
So how do food stamps, welfare benefits, debt and Gucci bags mix? In another related report monitored on the same marketwatch.com, 40% of Americans spend up to half of their income servicing debt. Americans are struggling to get out of the red. Another big surprise.
Some 40% of Americans with debt are spending up to half of their monthly income paying it back. And that may not even be enough to cover how much they owe. That’s according to a study on debt Thursday released by Northwestern Mutual, a life insurance and financial services company. The polling company Harris Poll surveyed more than 2,000 U.S. adults in February 2017 on behalf of Northwestern Mutual.
The survey found that nearly half of Americans are carrying at least $25,000 in debt, with an average debt of $37,000, excluding mortgage payments. About one in 10 surveyed said their debt was more than $100,000. “It becomes an ongoing cycle and really hard to get out of, given that people are not prioritizing debt and saving for their future as the first part of their budget,” Rebekah Barsch, the vice-president of planning at Northwestern Mutual, said.
Of course, out of the nearly half of all Americans who are carrying at least $25,000 in debt, millions of them are low income and food stamps recipients. So how are these low income families able to live on welfare benefits or food stamps and spend 40% of their income paying off credit card, student loans and other debts? How are these same low income families still able to spend 40% of their money on luxury goods and try to live like Beyonce? Clearly, the report leaves more questions than answers.
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( Sources : www.HowWeMakeMoneyOnline.com, whitehouse.gov, marketwatch.com and U.S Department of Agriculture. Photo Credits: Wikipedia, Yahoo News or relevant copyright owners)