DR@769 :
My friend posted this on Facebook : Dear Red America: the shutdown is not an opportunity for SNAP recipients to man up and get a job, because the recipients don't get the money directly. Grocery stores are reimbursed by state and federal governments for transactions on an EBT card, which works much like a prepaid debit card. And that revenue benefits you too.
How? Glad you asked. 😉
According to the best estimates Kroger collects more than $9 billion a year in SNAP reimbursements and Walmart collects well north of $20 billion (they are the 2 largest recipients of the program, which is budgeted to about $100B a year federally). Kroger in its most recent fiscal year had net income (that's income above its costs and debt service) of $3.8B on revenue of $147.1 billion, and Walmart had net income of $19 billion on revenue of $681 billion. Grocers very often run at profit margins below 4 percent, outside of holiday seasons.
Which means, conceivably, a long enough interruption in the SNAP program can be the difference in whether these companies are profitable in a given period or not. And if they are not trending toward a profit, there are basically two options: close stores and lay people off, or raise product prices. After all that inflation we just went through, you could be headed for another bit of sticker shock.
So even if you don't believe data that suggest SNAP beneficiaries mostly have jobs already, or just believe in kindness to the less advantaged, do know that this potentially affects your bottom line as well. Thank you, carry on. 👍
2025-10-28 21:49:27