For Shame: A Farm Bill that Would Leave Millions of Children Hungry

English: Snap Hill above South Heighton Black ...

(Photo credit: Wikipedia)

Given what we’ve learned over the past few weeks about government snooping and the quiet, untimely demise of our tattered right to privacy, it cheered me today to see the Obama White House announce it was actually drawing a line in defense of hungry children, by threatening a veto of the bloated (and much bloviated-over) Farm Bill to be voted on this week in the House of Representatives.

The Farm Bill is always a subsidy-laden Christmas tree for agribusiness, bedecked with the promise of government largesse for commodity crops like the cheap corn that fuels high-fructose corn syrup, thus ensuring that gallon jugs of soda are cheaper than milk. It rolls through DC every five years or so like an obese Mafia don, demanding ever more “respect” with each persistent shake-down. Much of the money in the bill, for example in the form of crop insurance, goes straight into the pockets of big agribusiness, and smaller farms barely see a penny.

This year, however, the slash-and-burn tactics of the Republican leadership have ensured that the bill is even more shameful than usual, because while it leaves in place, and even increases in some places, payments to agri-business, it also cruelly decimates the food stamp program that today provides a skeletal safety net to the poorest people in America. Some 45 percent of food stamp recipients are children, children with almost nothing but the hunger in their bellies. The pittance permitted by the food stamps program, with its meager allowance of $132 per month, gives them only slightly more than nothing.

But even that bare-bones allotment to stave off starvation is evidently too much for this Congress, which would literally take the food out of children’s mouths. I’ve been gratified, in this era of the post-sequester, to see people from Paul Krugman to Sen. Kirsten Gillbrand (D-NY) and Rep. Jim McGovern (D-MA) raising the alarm on this and drawing a line in the sand. Thirty Democratic Members of Congress, some of whom were recipients of “public assistance” when they needed it, took a pledge to spend the same as food stamp recipients for a week. It appears that Republicans need reminding that there is a social contract, and that robbing the poorest American children to keep giving money to Archer Daniels Midland and Monsanto ain’t it.

Here’s a few more facts about the food stamp program (called the Supplemental Nutrition Assistance Program, or SNAP) from our friends at Mom’s Rising:

As Krugman explains in his column where he gets justifiably teed off about this sorry state of affairs, we should care about food stamps from both an economic and a parenting-slash-human perspective:

Estimates from the consulting firm Moody’s Analytics suggest that each dollar spent on food stamps in a depressed economy raises G.D.P. by about $1.70 — which means, by the way, that much of the money laid out to help families in need actually comes right back to the government in the form of higher revenue.

Wait, we’re not done yet. Food stamps greatly reduce food insecurity among low-income children, which, in turn, greatly enhances their chances of doing well in school and growing up to be successful, productive adults. So food stamps are in a very real sense an investment in the nation’s future — an investment that in the long run almost surely reduces the budget deficit, because tomorrow’s adults will also be tomorrow’s taxpayers.

The upshot? While some of us, and by that I mean me, are futzing about the glass-bottle organic milk our children drink, in many households here in the rich old US of A, children are not getting enough food of any kind. And Congress is about to make this sad situation much, much worse. In a bill about the food system that shovels billions of taxpayer dollars in the direction of some of the biggest, most appalling companies perched atop our industrial food system.

And the Republican leaders who brought us this revealing debate? Well, as it turns out (with a bow towards the intrepid Environmental Working Group’s research), two of the GOP’s Agriculture Committee members have been, well, shall we call them, “takers”?

Reps. Stephen Fincher (R-Tenn.) and Doug LaMalfa (R-Calif.) both cited the Bible last week to argue that while individual Christians have a responsibility to feed the poor, the federal government does not. “We’re all here on this committee making decisions about other people’s money,” Fincher said. LaMalfa said that while it’s nice for politicians to boast about how they’ve helped their constituents, “That’s all someone else’s money.”

Yet both men’s farms have received millions in federal assistance, according to the Environmental Working Group, a nonprofit that advocates for more conservation and fewer subsidies. LaMalfa’s family rice farm has received more than $5 million in commodity subsidies since 1995, according to the group’s analysis of data from the U.S. Agriculture Department. Fincher’s farm has received more than $3 million in that time. Last year alone, Fincher’s farm received $70,574 and LaMalfa’s got $188,570.

I’ll have a sprinkling of sanctimony with that hypocrisy, thanks very much. And pass the plate of malarkey.

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Teed off like Krugman? Here’s how to complain to Congress, courtesy of Mom’s Rising.

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Update:

Of course, as you’ve likely heard by now, the forces of righteousness won this round. The farm bill failed in the House, shocking the hardened political elite who had assumed that hurting poor people utterly lacks political consequences. The measure’s fate is now up in the air, but watch for the return of cuts to SNAP:

Its failure came as a surprise last month, when most Democrats and conservative Republican members voted against the bill; Democrats thought the food stamp assistance in the bill was being cut too much, and the right wing thought these cuts weren’t big enough. Now, it’s unclear whether leadership will try to split off the food and nutrition portion — most of it is funding for food stamps, known as the Supplemental Nutrition Assistance Program or SNAP — from the rest of the bill or try to pass it again intact.

Update #2: An Appalling Disregard

So the House did pass a bill. But unlike in years past, they stripped it of funding for the food stamp program (called “SNAP”). This was a break from tradition, to say the least. Since 1973, the Farm Bill has combined funding for food stamps with those for agricultural subsidies. But not this time: instead, the House-passed version of the bill jeopardizes the food security of 47 million low-income Americans while handing out $196 billion in subsidies to behemoth agribusiness firms.

In response to this appalling state of affairs, Rep. George Miller (D-Calif.) called out 14 Republicans who voted for the SNAP-stripped bill. Collectively, the 14 members of Congress have a net worth of $124.5 million and since 1995 received $7.2 million in agricultural subsidies. To be sure, $7.2 is only a low-end estimate of the largesse they’ve received, as a reporting loophole for crop insurance support makes it impossible to know exactly how much has been doled out. Nonetheless, each has received at least $515,279 on average. One of them, Rep. Stephen Fincher (R-Tenn.), has received nearly $3.5 million in subsidies. This kind of naked self-dealing is brazen even for this particular crop of Congress critters, and deserves the condemnation it has gotten. The ultimate fate of the measure remains unknown.

Who’s a Moocher, Really?

Mitt Romney, former governor of Massachusetts,...

Mooch much?

Romney’s revealing slip at a private fundraiser has already occasioned a lot of commentary, including a piece by David Brooks bemoaning his campaign’s “incompetence.”

Brooks straightforwardly addresses some of Romney’s errant notions. First, the idea that those who get government money mainly vote for Democrats is false of course, as progressives often bemoan: instead, many are veterans and working class whites who tend to vote Republican. And he points out that these alleged “moochers” also includes millions of retirees. Gosh, vets, old people and poor people – why are you guys always on the take?

Brooks generously says that this is not the real Romney, but a gussied-up campaign version of a Romney-bot. But it seems to me that Romney’s comments instead reveal how uncritically he’s consumed the GOP’s “job creator” Kool-Aid.

One undercurrent of his comments is that unlike the “moocher” class, he and any other people rich enough to attend a big-money Republican fundraiser earned their extraordinary wealth, with bootstraps or otherwise. Of course, Romney perpetually appears not to notice that he was born on third base, which is one of the reasons he keeps committing the same gaffe over and over and over again, like hari kari inflicted with a sharpened silver spoon.

But even beyond his lamentable personal arrogance, the suggestion that he deserves what he has is worth examining. As a governor’s son, handed any opportunity in the world, Romney chose the easiest and most lucrative, but heartless, way to make lots of moola: private equity. This says something at least about his character, in a way that makes Brooks’ assessment look overly generous.

What is private equity, anyway, and is it something of real value, such that someone like Romney is morally better than a moocher? The basic model for private equity firms is to buy a company, in order to “fix” and sell it. The catch? “Fixing” it generally means you have to do one or both of two things: increase revenues or cut costs. To increase revenues is hard, requiring great management and long-term investment. So private equity firms cut costs – providing a short-term answer for investors wanting high, fast returns.

The upshot is that most private equity deals take advantage of tax writeoffs for corporate debt, leveraging a company and risking its health to improve profits for the equity firm. The focus on quick returns almost guarantees this approach. Does this add value? Perhaps sometimes, but more times than not it mainly pads the pockets of investors.

Does it generate “efficiencies”? Who can say, really? Efficiencies for whom and for what purpose? The received wisdom is that anything that makes someone a dollar expresses value, but in societal or moral terms that’s often far from the truth.

As Mother Jones has since revealed, the video in question was filmed at a $50,000-per-plate fundraiser at private equity manager Rick Leder’s house. Here’s what the New York Times had to say about Leder and his financial value-added:

Mr. Leder personifies the debates now swirling around this lucrative corner of finance. To his critics, he represents everything that’s wrong with this setup. In recent years, a large number of the companies that Sun Capital has acquired have run into serious trouble, eliminated jobs or both. Since 2008, some 25 of its companies—roughly one of every five it owns—have filed for bankruptcy. Among the losers was Friendly’s, the restaurant chain known for its Jim Dandy sundaes and Fribble shakes. (Sun Capital was accused by a federal agency of pushing Friendly’s into bankruptcy last year to avoid paying pensions to the chain’s employees; Sun disputes that contention.) Another company that sank into bankruptcy was Real Mex, owner of the Chevy’s restaurant chain. In that case, Mr. Leder lost money for his investors not once, but twice.

And Leder evidently also throws racy parties that require a lot of chlorine for the pool (yawn). So there’s that.

But even setting aside for a moment, if we can, this seedy world of hilariously cliched corporate raiders, why should we treat Republican’s moral assumption that corporate earnings are real, earned, and genuine as sacrosanct?

Obama got in some hot water a little earlier in the summer and was much-derided at the Republican convention for an honest and unremarkable statement about how the money earned by businesses depends on social investments by the government — i.e., all of us — for success. Really, this is fact, and not particularly controversial.

As Obama would know, it’s black letter law that companies may be sued wherever they do business because they “avail” themselves of roads, bridges, and the mail. In addition to the obvious examples Obama was describing, every time an uninsured low-income worker gets sick, and goes to a hospital for charity care, we all subsidize their care (an issue that “Obamacare” will help address by giving that person real insurance at last).

Every time the federal government makes college more affordable for students, or helps low-income families through Healthy Start, the workers of tomorrow become better equipped for a challenging future. Every family that gets a (ridiculously paltry) childcare tax credit is a family that can better afford to work. And every time a government safety or health rule saves a worker from being injured, that person can go to work tomorrow.

But it’s deeper than that as well. Guess who uses our court system, mostly? Businesses, suing other businesses. Without the power to enforce contracts, these arrangements would be enforced at the end of a gun, as in many less tenable economies around the world. A transparent, accountable marketplace is the sine qua non for a productive and stable economy.

And on the other side of the equation, it’s clear that corporations are good at producing stuff, and that a vibrant business economy is good for workers and companies. But there’s also a lot that’s wrong with the way corporate incentives are currently structured. This should be a much bigger part of the debate about the contributions of the so-called “job creators.”

Due to our shareholder incentive structure and a lack of meaningful rules for corporate charters, a corporation’s current job is to squeeze a dollar until it hurts (somebody else). This drive towards the bottom line often produces great suffering for workers, especially low-income workers in punishing, poorly regulated jobs like those in slaughterhouses or on farms.

There’s widespread financial predation as well – the Department of Justice and Attorneys’ General landmark settlement against the banks earlier this summer, though enormous, was the tip of the iceberg compared to the devastation in the housing market from no-document loans, robo-signing and other schemes, and from a derivatives economy that was – and is still – structured to produce careless profit-taking by Wall Street.

And of course there’s environmental harm – the “externalities” that businesses wish we would just clean up instead of them. And sometimes they dirty it up on purpose. In the case of chemical flame retardants, for example, the industry basically invented a need and poisoned every living room and public space in America with cancer-causing toxins, just to sell more pounds of their stuff.

Then there’s the corporate capture of lawmakers through campaign contributions, which puts decisions by government in hoc to the wealthy. The big dollars flow to the committee chairs who preside over issues of interest to companies: most of the same Republicans who mouth off against big government apparently see no problem when these companies attempt to purchase that government for a price.

My point isn’t that corporations are evil. They are structured to be profit-maximizing. But the equation of that with the high moral ground is puzzling, given the dubious mix of activities in which companies often engage. And what often gets lost in the debate about government funding versus corporate freedom is the hypocrisy: corporations readily exploit government money, lands and resources whenever they can, while criticizing any attempt to balance their often-rapacious activities with the common good.

Yet corporations, more than almost anything actually, are mere creatures of the state and governing law. The tax incentives that reward debt and leverage, and the policies that are keeping borrowed money cheap basically forever? Those are government policies, of course. The outrageous, anti-American and anti-middle class policy that capital gains are taxed lower than income? Government again. A system of tax loopholes so porous that the top 10 most profitable U.S. companies paid an average federal tax rate of just 9 percent last year? We built that too.

I don’t really expect that most businesses will have much of a social conscience, because we (unfortunately) haven’t asked them to, by and large. And most people are just doing what it takes to get by, within the rules they were handed. But if you want to claim a kind of moral superiority, well, then forgive me for asking a few questions about how you came by that dollar. If you did it on the backs of workers, through fraud and predation, or by poisoning people or the planet, um, not so much.

And if you chose the private equity route – leveraging companies, gutting assets like workers’ pension funds, and often driving them out of business and pocketing the barely taxed proceeds, then I’m sorry, smug and superior are off the table for you. In fact, you have some explaining to do.

The posturing about the specialness of corporate-earned wealth comes from politicians’ clubby intimacy with the uber-class of the one-percenters – political donors, Wall Street barons, and ultra-rich. And Romney’s comments make clear not just his “incompetence,” but the narrowness of his version of who is righteous in America, and who is not.

In contrast, old-timey conservatives used to routinely acknowledge a role for even strong government in creating the rules and social conditions for businesses to thrive. But this new-fangled GOP doesn’t want to talk about grounding a strong economy in transparency and accountability — they seem only to know a particularly mean-spirited version of us versus them. As Clinton pointed out, this inability to compromise or see the whole picture makes for broken politics and political decision-making.

So we have to fix it. We should use this moment to call into question the thoughtless sanctimony of the discourse around the value of the corporation. We created these things, and if they really are “people,” then the least we can do is require them to act like decent citizens.

Show me a business that cleans up after itself, treats its workers fairly, gives back to the community, is transparent and accountable in its dealings, and creates a well-made, environmentally sound product, and I’ll happily nominate its owners for the moral high ground. Or for political office, because we need more folks with backbone in those jobs.

If that’s not you, though, please step down off that soapbox — …slowly…slowly... — and do try to keep a lid on it about how much mooching the rest of us really do.