5-1-14 – Increase Funding for Food Stamps! Kraft and Walmart need the money.

Posted by Rob Roper

Here’s a little moral conundrum for the screw- big-corporations/shower-benefits-on-the-little-guy crowd. Walmart, that icon of BIG the Left loves to hate, admitted in its most recent SEC filing that the evil profits it reaps are greatly dependent on high levels of food stamp funding.

The report lists “changes in the amount of payments made under the Supplement Nutrition Assistance Plan and other public assistance plans, changes in the eligibility requirements of public assistance plans” as factors that could “materially affect our financial performance, our results of operations, including our sales, earnings per share or comparable store sales or comparable club sales and effective tax rate for any period, our business operations, business strategy, plans, goals or objectives.”

Two years ago the CEO of Kraft made a similar statement, estimating that one-sixth of the companies revenues come from people using food stamps. At the time he was arguing against potential cuts to the SNAP program because such cuts would cut in to Kraft’s bottom line.

So if you really hate Walmart and all those fortune 500 fat cats, hit ‘em where it hurts and gut the food stamp program.

But, in all seriousness these stories represent a genuine problem with the U.S. economy today. Private companies are basing their business plans on how government redistributes wealth, not on how do deliver a valuable product to a willing customer. What we’ve created here is two powerful corporations (and surely a lot more) that have a vested interest in keeping citizens in a government program at taxpayers expense. Those at the top and those at the bottom “benefit.” Those in the middle get squeezed.

– Rob Roper is president of the Ethan Allen Institute

 

{ 2 comments… read them below or add one }

MJ Farmer May 2, 2014 at 9:57 pm

Costco too.

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Mark Donka May 2, 2014 at 10:29 pm

All of this falls right in place for the Big Government plan. They like the idea that people are dependent on the government. As long as they control people through government subsidize then they become slaves to the system. Then the left has control of the people and they control how they vote. So the more people on government assistance the bigger voting block they can lord over.
The government needs to work to get people off of these programs. We need to do this by giving people the incentive to move out of the kept class. This can be done in many ways. If the unemployment rate is as low as the government reports then we should see a drop in the number of people on government assistance. But this does not appear to be happening.
Our assistance programs need to set up in such a way that there is a beginning and an ending. It was never meant to be long term, it is supposed to be a safety net for people not a way of life.

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