by: the Common Constitutionalist
When one thinks of the poor in America, one might think of the welfare system, or government (section 8) housing, or maybe the Supplemental Nutrition Assistance Program (SNAP). You know, food stamps.
Actually, it’s been quite a while since I’ve seen anyone at the grocery store pull out a paper “food stamp”. Now it’s the EBT (Electronic Benefits Transfer) card. You’ve seen it, even if you haven’t realized. The EBT card mimics a standard credit card.
So that’s what may come to mind when reflecting on America’s less fortunate. It certainly wouldn’t be J.P. Morgan, Xerox or eFunds Corporation.
Now why in the world would anyone think of these three large corporations in relation to the poor?
Well, you see, the federal government pays for the food stamp program, but it does not administer it.
Have you ever heard the term public/private partnership? Well, this is a classic example of its real-world application. It also sounds better than what it is; crony capitalism.
These three corporations hold the EBT contracts for the various states. J.P. Morgan has 24 state contracts alone. In other words, the government pays J.P. Morgan as the administrator of SNAP funds in almost half the states.
Have you heard that dopey saying, mostly uttered by socialists and other leftists: “they’re getting rich on the backs of the poor”?
Logically, that’s an impossibility except in this case, where corporate executives and investors are doing just that. It’s an ingenious scam and here’s how it works.
J.P. Morgan wins state EBT contracts. It in turn lobbies Congress and the White House. It pays particular attention to those of the Department of Agriculture and members of Congress that oversee the department’s budget.
Maybe Morgan might donate money to a politician’s election or reelection campaign, similar to the almost $1 million in donated in 2008 to the Obama presidential campaign. It’s just coincidental that shortly after taking office in 2009 Obama signed the “American Recovery and Reinvestment Act”. Buried in the Bill was a 13% increase in EBT benefits and also broadened acceptance into the program. In other words, allowing many more to enroll in SNAP.
My guess, you like me have heard the ads promoting food stamp enrollment. As more and more unfortunate Americans are forced into the EBT program, J.P. Morgan’s profit increases and investors reap the benefits. Investors such as Obama, which has invested upwards of $1 million.
They are the number 3 campaign contributor to Senate Agriculture chair Debbie Stabenow. Sen. Jay Rockefeller has invested over $50 million in J.P. Morgan.
Don’t get me wrong. I’m all for investment profits. Just not rigged profits. And that’s what they are. Companies like J.P. Morgan reap huge profits and increased stock value by manipulating political hacks. At the same time these political hacks reap profits by investing in the same companies they promote. That’s crony capitalism.
And with more and more people enrolling and the addition of the WIC (Women, Infants and Children) program into the EBT system, the circle of profits and corruption will continue unabated.