Georgia report finds steps Congress should take to SNAP ‘benefits cliffs’
Design flaws in the federal food stamp program hinder recipients’ upward economic mobility and effectively force them into governmental dependency.
That’s the upshot of a new Georgia Center for Opportunity report exploring possible solutions for addressing the benefits cliffs in safety-net programs like the Supplemental Nutrition Assistance Program.
Erik Randolph, GCO’s research director, told The Center Square that the report — “Solving the Food Assistance (SNAP) Benefits Cliffs” — identified several steps federal authorities can take to ensure that SNAP functions as safety net programs should. In doing so, the federal government can eliminate SNAP benefit cliffs without spending more money.
“The very basic concept is that when you lose more in taxes and benefits than you receive from a gain in additional earnings, that’s how we’re defining a cliff,” Randolph said. “Let’s say that you get a pay raise worth $2,000, but you actually lose $3,000, you’re $1,000 behind; you’re worse off financially than what you were.
“The trade-off is that you can accept the pay raise but end up with less money,” Randolph added. “If someone’s acting in a rational manner, why would they do that? But in the long term, it’s going to harm them because it’s going to reduce their economic mobility. So, the system shouldn’t have that as part of it. It should be a hand up and not a handout that prevents you from making the right decision or that’s encouraging you to make the wrong decision.”
Storm clouds on the horizon for the economy
Inflation is becoming worse for Americans on a fixed income
Year-over-year inflation rate now stands at 6.5%
Today the U.S. Bureau of Labor Statistics announced that the Consumer Price Index (CPI) dropped 0.1% in December, meaning the year-over-year inflation rate now stands at 6.5%. The Bureau also released the 2022 annual average price level, which was 8% higher than 2021.
The Georgia Center for Opportunity’s (GCO) take: “We keep seeing positive headlines about the inflation rate, but that good news is lost on average Georgians who are continually pinched on the cost for everyday necessities like groceries and gas,” said Erik Randolph, GCO’s director of research. “Although there was some positive news in the December numbers, it’s important to keep in mind that core inflation remained elevated, including for food. If policymakers in Washington truly want to help the most economically vulnerable in our country, they must return to fiscal sanity and rein in the spending. Federal Reserve Chairman Jerome Powell remains steadfastly committed to bringing down inflation, and hopefully the change of political leadership in the U.S. House will mean more responsible federal spending. The policy goal should be to repeat the general decline in prices as what happened in December so the price level slowly comes back down. This will extend the opportunity of a higher standard of living for everyone, the rich and poor alike.”