Thank You For Your Service, sort of

VeteransThe CBPP estimates that 11,300 veterans — that’s Veterans — in households receiving SNAP (food stamp) benefits in Nevada will see benefits cut — that’s CUT — on November 1, 2013.

“The 2009 Recovery Act temporarily raised SNAP benefits as a form of effective economic stimulus and to reduce the hardship that low-income families faced during the recession.  This benefit increase is set to expire on November 1.  The coming benefit cut will reduce SNAP benefits, which are already modest, for all households by 7 percent on average, or about $10 per person per month.” [CBPP]

The assistance will drop back to less than about $1.40 per meal.  Again, the point remains that programs like SNAP are economic “automatic  stabilizers.”  At the risk of continual repetition, an automatic stabilizer is a financial augmentation in income designed to offset deflationary pressures during economic downturns.  In English, that would be money to offset income lost during recessions and depressions to keep the aggregate demand from succumbing to further contractions — leading to more contraction.  We know from analysis during the Great Recession of 2007-08 that those SNAP benefits created $1.73 in economic activity for every $1.00 expended.  [Moodys pdf]

And so now we have the Farm Bill stalled in conference between the House and Senate which would address SNAP related issues, and the two sides arguing about whether to cut yet another $35 billion from the food assistance program. [USAT]  This, in the face of the obvious point that the “Recovery” hasn’t been a general success for all levels of income earners.

“All told, average inflation-adjusted income per family climbed 6% between 2009 and 2012, the first years of the economic recovery. During that period, the top 1% saw their incomes climb 31.4% — or, 95% of the total gain — while the bottom 99% saw growth of 0.4%.”

Last year, the richest 10% received more than half of all income — 50.5%, or the largest share since such record-keeping began in 1917. Here is how the top earners break down: Top 1%: incomes above $394,000 in 2012; Top 5%: incomes between $161,000 and $394,000; Top 10%: incomes between $114,000 and $161,000.”  [Wall Street Journal]

The 1% have done very nicely, thank us all very much, while the remaining 99% — including those 11,300 Nevada veterans in low income brackets — have witnessed the income gap widen.  Thank you for your service…

The right wing response is generally, “Why don’tcha get off your lazy butt, get some job training, and find a better job?”  Well now, that might have been easier for some active duty military personnel had not the House/Senate GOP decided to shut down the federal government, including the office that processes military education benefits. [IHE]

The shutdown was a temporary tantrum, the Sequester (Budget Control Act) was more serious:

March 8, 2013: “Due to the current fiscal challenges, the Secretary of the Army has approved the suspension of Tuition Assistance (TA) effective 1700 EST Friday, 8 Mar 13. The suspension applies to all components and will remain effect until the fiscal situation matures.
Effective 1700 EST 8 Mar 13, Soldiers will no longer be permitted to submit new requests for Tuition Assistance through the GoArmyEd portal.”  [TDB]

There was sufficient outrage to move the Congress to reinstate Pentagon authority to restore the tuition assistance program by March 28, 2013. The U.S. military was ordered to find other areas in their budget to cut and to reopen enrollment in the TA program. [HuffPo]  Are we beginning to see a pattern here?

The Budget Blasters in the U.S. Congress are delighted to take very grand, or grandiose,  general positions like shutting down the government — but for Heaven’s Sake don’t shut down the World War II Memorial; and, cut all that fat from the federal budget — but for Heaven’s Sake don’t cut tuition assistance for members of the U.S. military.  A person could easily conclude that the Budget Blasters in Congress dislike federal spending on anything in general, but come to a screeching halt when we get down to the specifics in real federal functions.

The Senate Republicans successfully filibustered a bill in September 2012 to create a job training program for veterans which would have involved a relatively modest $1 billion in expenditures over a five year period.

“Sen. Tom Coburn (R-Okla.) said GOP concerns were about the $1 billion price tag for the program over five years. Republicans described the proposal as a political ploy of no practical value. “If, in fact, we want to help veterans get jobs, there are lots of ways to do it,” Coburn said on the floor before the vote. “We need to make sure the job training programs we have are working, and they’re not.” [WaPo]

There might have been “lots of ways” for veterans to find job training programs in 2012, except that the Budget Control Act which Senator Coburn and others referred when filibustering the 2012 bill to death also shaved funding from other job training programs:

“Federal money for the primary training program for dislocated workers is 18 percent lower in today’s dollars than it was in 2006, even though there are six million more people looking for work now. Funds used to provide basic job search services, like guidance on résumés and coaching for interviews, have fallen by 13 percent.” [NYT April 2012]

One year on, and the same squeeze was observed by the National Skills Coalition which issued its report on the impact of diminished support for job training programs in July 2013, including this conclusion:

“Over the past three years, Congress has cut funding to employment and job training programs by over $1 billion. Sequestration and spending caps will result in further cuts for the next decade. In addition, some in Congress are proposing additional, even deeper cuts that will worsen the existing skills gap and make it difficult for businesses to grow and compete globally.” [NSC]

Excuse the impertinent inquiry — but job training programs have already been cut by $1 billion as a result of Sequestration and spending caps, and the Congressional Republicans have blocked more targeted programs for training veterans, so exactly where are veterans supposed to go for help once they are home and trying to transition back into the civilian economy?  If Senator Coburn believes there are “lots of ways to do it” then perhaps he’d care to point out where the federal government is poised to give the assistance to veterans they need to improve their job skills?

“Thank you for your service” is a hollow bromide, with little more staying power than those cheap yellow ribbon car magnets, unless we are ready and willing as a nation to assist veterans with educational programs, job training skills, and some basic resources — like Food! — so that they can fully contribute to  our economy.

Meanwhile, some 11,300 Nevada low income veterans who are struggling to put food on the table are about to be hit with another blow from the authors of the great American con job, those espousing the notion that we can get everything we want, we just shouldn’t have to pay for it.  And the 1% keep rolling along…

Comments Off on Thank You For Your Service, sort of

Filed under Economy, Nevada economy, Nevada politics, Politics

Comments are closed.