So, yeah, I can see where someone might be upset that a person with a million dollars in the bank is filing for food stamps because their income is in the pits.
On the other hand, for someone who is trying to climb out of poverty, saving money is just what everyone encourages them to do. But the state of Maine (or its governor) has decided that if you have $5000 in the bank somewhere — even if you're saving that for a car so you can drive to a job, or socking away some money to pay first and last month and deposit on a new apartment, or even just because you're trying to create security against a rainy day — you are no longer eligible for food stamps. You need to be impoverished — and stay that way — to get assistance.
At which point you get pointed at as a leech on the system and a burden on the taxpayers and someone who can't exercise financial responsibility. But, hey, that's your look-out — you're the one who's poor, right?
Maine has found a stunning way to keep the poor in poverty
A lesson in unintended consequences.
The number just needs to be raised an order of magnitude to $50k.
I'm kidding of course. No one with $49k in the bank needs assistance.
+Charles Carrigan Well, that is an interesting thought — we have an upper bound and a lower bound of a reasonable amount for this. Is there an optimal number? Does the type of account and asset qualify? The Maine rules exclude an asset like a primary home and a primary vehicle — but if you have those, do you need food stamps? Is it unfair to say that someone with a $10,000 car should qualify but someone with $10,000 in the bank should not? Why treat cash differently from home equity? Why count savings accounts but explicitly exclude 401(k) accounts — sure, there's a hefty tax penalty for early withdrawal, but think of the taxpayers!
The rules seem set up to be reasonable on the face of it — but by excluding the truly impoverished rather than a middle class family down on its luck, they come across as deeply unfair.
A complicated question no doubt. Fairness is essential, as is providing incentive to work. A $10k car isn't the same as $10k cash – one is depreciating while the other can be invested. But surely the people of Maine can find ways to figure this out? I hope so.
+Charles Carrigan Getting rid of their current governor would probably be a good start.
The fix is called, "Guaranteed Basic Income". It ends poverty.