SURREY, BRITISH COLUMBIA, Aug 29, 2011 (MARKETWIRE via COMTEX) -- Canadian drivers will benefit from research into new technologies for the automobile industry that will develop a battery pack thermal management system for hybrid electric vehicles, more efficient systems for wheel production, performance-enhancing catalytic converters, enhanced fuel cell technology and improved automotive manufacturing workplace design and ergonomics.
The Honourable Gary Goodyear, Minister of State (Science and Technology), was joined today by Nina Grewal, Member of Parliament for Fleetwood-Port Kells, and by Suzanne Fortier, President of the Natural Sciences and Engineering Research Council of Canada, to announce five new projects to be supported by the Automotive Partnership Canada initiative.
"Our government is investing in research and development with the Canadian automobile industry to make sure these businesses continue to grow, create jobs and increase our ability to compete internationally," said Minister Goodyear. "These projects will develop new technologies and bring them to the marketplace for the benefit of Canadians."Read more...
Subscription business model
The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The model was pioneered by magazines and newspapers, but is now used by many businesses and websites.
The first UK subscription newsletter was the London Property Letter launched in the early 1960s by Sylvester Stein, previously editor of South Africa's Drum magazine. The London Property Letter utilized the standing order payment where the subscriber signed up for a continuous annual payment from his or her bank account. Around the same time, the Consumer's Association launched Which? magazine using the same standing order techniques.
In 1982, Running magazine was launched by Sylvester Stein to cater for the new jogging and running craze that had arrived from the USA. The standing order subscription model was adapted for use on this and other consumer news trade magazines by Peter Hobday, appointed publishing director of Running magazine by Sylvester Stein in 1982. Peter Hobday increased the subscription sales of Running Magazine to become the highest circulation title the athletics field. Running magazine eventually evolved into Runner's World.
Rather than selling products individually, a subscription sells periodic (monthly or yearly or seasonal) use or access to a product or service, or, in the case of such non-profit organizations as opera companies or symphony orchestras, it sells tickets to the entire run of five to fifteen scheduled performances for an entire season. Thus, a one-time sale of a product can become a recurring sale and can build brand loyalty. It is used for anything where a user is tracked in both a subscribed and unsubscribed status.
Membership fees to some types of organizations, such as trade unions, are also known as subscriptions.
Industries that use this model include mail order book sales clubs and music sales clubs, cable television, satellite television providers with pay-TV channels, satellite radio, telephone companies, cell phone companies, internet providers, software providers, business solutions providers, financial services firms, fitness clubs, and pharmaceuticals, as well as the traditional newspapers and magazines.
Renewal of a subscription may be periodic and activated automatically, so that the cost of a new period is automatically paid for by a pre-authorized charge to a credit card or a checking account. In the U.S., recurring card charges must be disclosed in writing to the cardholder at least 10 days before each charge.[1]
A common model on web sites, colloquially becoming known as the freemium model, is to provide content for free, but restrict access to premium features (for example, archives) to paying subscribers. In this case, the subscriber-only content is said to be behind a paywall. The razor and blades business model (also called the bait-and-hook model) is an attempt to approximate the subscription model, but with a formal agreement by both parties.
Types of subscriptions
Effect on the vendor
Effect on the customer
Effect on the environment Read more...
The first UK subscription newsletter was the London Property Letter launched in the early 1960s by Sylvester Stein, previously editor of South Africa's Drum magazine. The London Property Letter utilized the standing order payment where the subscriber signed up for a continuous annual payment from his or her bank account. Around the same time, the Consumer's Association launched Which? magazine using the same standing order techniques.
In 1982, Running magazine was launched by Sylvester Stein to cater for the new jogging and running craze that had arrived from the USA. The standing order subscription model was adapted for use on this and other consumer news trade magazines by Peter Hobday, appointed publishing director of Running magazine by Sylvester Stein in 1982. Peter Hobday increased the subscription sales of Running Magazine to become the highest circulation title the athletics field. Running magazine eventually evolved into Runner's World.
Rather than selling products individually, a subscription sells periodic (monthly or yearly or seasonal) use or access to a product or service, or, in the case of such non-profit organizations as opera companies or symphony orchestras, it sells tickets to the entire run of five to fifteen scheduled performances for an entire season. Thus, a one-time sale of a product can become a recurring sale and can build brand loyalty. It is used for anything where a user is tracked in both a subscribed and unsubscribed status.
Membership fees to some types of organizations, such as trade unions, are also known as subscriptions.
Industries that use this model include mail order book sales clubs and music sales clubs, cable television, satellite television providers with pay-TV channels, satellite radio, telephone companies, cell phone companies, internet providers, software providers, business solutions providers, financial services firms, fitness clubs, and pharmaceuticals, as well as the traditional newspapers and magazines.
Renewal of a subscription may be periodic and activated automatically, so that the cost of a new period is automatically paid for by a pre-authorized charge to a credit card or a checking account. In the U.S., recurring card charges must be disclosed in writing to the cardholder at least 10 days before each charge.[1]
A common model on web sites, colloquially becoming known as the freemium model, is to provide content for free, but restrict access to premium features (for example, archives) to paying subscribers. In this case, the subscriber-only content is said to be behind a paywall. The razor and blades business model (also called the bait-and-hook model) is an attempt to approximate the subscription model, but with a formal agreement by both parties.
Types of subscriptions
Effect on the vendor
Effect on the customer
Effect on the environment Read more...
Obama and Merkel discusses economy
Obama and Merkel vow action on global economic woes
By Caren Bohan | Reuters – 27 juillet 2011
WASHINGTON (Reuters) - U.S. President Barack Obama and German Chancellor Angela Merkel discussed the eurozone crisis and financial-market turbulence on Saturday and vowed action to bolster the global economy, the White House said in a statement.
"The two leaders agreed on the importance of concerted action, including through the G20, to address current economic challenges and to spur growth and job creation in the global economy," the statement said.
The White House also said Obama and Merkel discussed Middle East peace and would continue working on a statement by the Middle East Quartet -- the European Union, the United States, Russia and the United Nations -- that would provide a basis for the resumption of direct talks between the Israelis and Palestinians.
(Writing by Caren Bohan; Editing by Vicki Allen)
By Caren Bohan | Reuters – 27 juillet 2011
WASHINGTON (Reuters) - U.S. President Barack Obama and German Chancellor Angela Merkel discussed the eurozone crisis and financial-market turbulence on Saturday and vowed action to bolster the global economy, the White House said in a statement.
"The two leaders agreed on the importance of concerted action, including through the G20, to address current economic challenges and to spur growth and job creation in the global economy," the statement said.
The White House also said Obama and Merkel discussed Middle East peace and would continue working on a statement by the Middle East Quartet -- the European Union, the United States, Russia and the United Nations -- that would provide a basis for the resumption of direct talks between the Israelis and Palestinians.
(Writing by Caren Bohan; Editing by Vicki Allen)
Buffett invests $5 billion in Bank of America
By PALLAVI GOGOI - AP Business Writer | AP – August 25, 2011
NEW YORK (AP) — Warren Buffett is coming to the rescue of another fallen giant.
Buffett's Berkshire Hathaway announced Thursday that it would invest $5 billion in Bank of America Corp., giving a much-needed vote of confidence in the struggling bank.
The bank's stock had plunged 52 percent in the past year on concerns over the bank's mortgage problems and worries that it would have to sell large amounts of stock to shore up its balance sheet.
Investors' confidence in the bank took another blow this month as its mortgage headaches got even worse. On Aug. 8, American International Group Inc. sued Bank of America for more than $10 billion, saying the bank deceived AIG by selling it overvalued mortgage-backed securities.
Much of the Charlotte, North Carolina, bank's problems stem from its 2008 purchase of Countrywide Financial Corp., the largest U.S. mortgage lender. Bank of America has been under heavy pressure from investors for selling them securities based on mortgages that later lost value.
The bank paid a total of $12.7 billion earlier this year to settle claims that it sold investors faulty mortgage investments. Investors have become worried that the bank would have to pay out even more to settle future claims.
Buffett, one of the most successful and respected investors of all time, has lent his credibility to several other icons of American business at times when investors' confidence in them was waning. His investments have usually proven to be both prescient and profitable.
Buffett pumped $5 billion into Goldman Sachs Group Inc. at the height of the 2008 financial crisis, helping to reverse a crisis of confidence in the investment bank and the U.S. banking system in general. He also invested $3 billion in General Electric Co.
Those investments, which paid annual dividends of 10 percent, wound up being lucrative. Berkshire made $2 billion from the Goldman investment alone. Unlike the Bank of America deal, those companies approached Berkshire seeking financial help and the stamp of approval that came with the endorsement of the legendary investor.
Buffett said in a statement Thursday he called Bank of America's CEO Moynihan to ask about investing because he considered the bank a strong, well-led company.
Berkshire will receive a dividend of 6 percent on his investment in Bank of America. Berkshire will get 50,000 preferred shares and warrants to purchase 700 million shares of common stock at $7.14 per share. Buffett can exercise the warrants at any time in the next 10 years. If he does, it would make him the banks largest shareholder with a stake of 7 percent.
An hour after the deal was announced, Buffett had already made a profit on paper of $500 million on the stock warrants thanks to a surge in Bank of America's stock price. After closing at $6.99 Wednesday, the stock jumped 87 cents or 12 percent to $7.86 Thursday. Bank of America's stock traded as high as $15 in January, before its mortgage woes worsened.
Buffett's investment in Bank of America sent the stocks of other banks higher too. Citigroup Inc. rose 2.7 percent and Morgan Stanley rose 3.4 percent.
Berkshire also holds investments in several other banks. One of Berkshire's biggest stock investments is a 16 percent stake in Wells Fargo & Co. Berkshire also holds stakes in US Bancorp, M&T Bank Corp. and the Bank of New York Mellon Co.
NEW YORK (AP) — Warren Buffett is coming to the rescue of another fallen giant.
Buffett's Berkshire Hathaway announced Thursday that it would invest $5 billion in Bank of America Corp., giving a much-needed vote of confidence in the struggling bank.
The bank's stock had plunged 52 percent in the past year on concerns over the bank's mortgage problems and worries that it would have to sell large amounts of stock to shore up its balance sheet.
Investors' confidence in the bank took another blow this month as its mortgage headaches got even worse. On Aug. 8, American International Group Inc. sued Bank of America for more than $10 billion, saying the bank deceived AIG by selling it overvalued mortgage-backed securities.
Much of the Charlotte, North Carolina, bank's problems stem from its 2008 purchase of Countrywide Financial Corp., the largest U.S. mortgage lender. Bank of America has been under heavy pressure from investors for selling them securities based on mortgages that later lost value.
The bank paid a total of $12.7 billion earlier this year to settle claims that it sold investors faulty mortgage investments. Investors have become worried that the bank would have to pay out even more to settle future claims.
Buffett, one of the most successful and respected investors of all time, has lent his credibility to several other icons of American business at times when investors' confidence in them was waning. His investments have usually proven to be both prescient and profitable.
Buffett pumped $5 billion into Goldman Sachs Group Inc. at the height of the 2008 financial crisis, helping to reverse a crisis of confidence in the investment bank and the U.S. banking system in general. He also invested $3 billion in General Electric Co.
Those investments, which paid annual dividends of 10 percent, wound up being lucrative. Berkshire made $2 billion from the Goldman investment alone. Unlike the Bank of America deal, those companies approached Berkshire seeking financial help and the stamp of approval that came with the endorsement of the legendary investor.
Buffett said in a statement Thursday he called Bank of America's CEO Moynihan to ask about investing because he considered the bank a strong, well-led company.
Berkshire will receive a dividend of 6 percent on his investment in Bank of America. Berkshire will get 50,000 preferred shares and warrants to purchase 700 million shares of common stock at $7.14 per share. Buffett can exercise the warrants at any time in the next 10 years. If he does, it would make him the banks largest shareholder with a stake of 7 percent.
An hour after the deal was announced, Buffett had already made a profit on paper of $500 million on the stock warrants thanks to a surge in Bank of America's stock price. After closing at $6.99 Wednesday, the stock jumped 87 cents or 12 percent to $7.86 Thursday. Bank of America's stock traded as high as $15 in January, before its mortgage woes worsened.
Buffett's investment in Bank of America sent the stocks of other banks higher too. Citigroup Inc. rose 2.7 percent and Morgan Stanley rose 3.4 percent.
Berkshire also holds investments in several other banks. One of Berkshire's biggest stock investments is a 16 percent stake in Wells Fargo & Co. Berkshire also holds stakes in US Bancorp, M&T Bank Corp. and the Bank of New York Mellon Co.
High-Paying Jobs You Can Get with an Associate’s Degree
Source: Monster
Before you head off to campus, be forewarned that an associate’s degree can lock you into a particular job, says Mark Szypko, CCP, managing director at Salary.com, which powers the Salary Wizard.
“When you get into these programs, they can be limited, and your career can be inflexible,” he says. “There’s nothing wrong with that if you enjoy what you’re doing. But if you get tired of what you’re doing, there may not be a lot of career options open to you.”
Make sure you’re comfortable in the niche you choose before you invest two years of your life and thousands of dollars in tuition getting ready for a new career. “If you don’t like going to the dentist, you probably won’t enjoy being a dental hygienist,” Szypko says.
Test-drive the occupation by doing informational interviews and internships as soon as you’re eligible.
Among the high-paying jobs you can land with an associate’s degree are:
Registered Nurse
Registered nurses have more career flexibility than other associate’s-level healthcare workers, but there’s a catch. “You can break into the nursing field with an associate’s degree, but nurses with bachelor’s degrees are becoming so plentiful that there will be fewer jobs for those looking with an associate’s degree,” Szypko says. Seek an employer that will pay for additional education, and plan to go on for a four-year nursing degree if you want job security.
See registered nurse salaries | Search for registered nurse jobs
Dental Hygienist
Like many high-paying jobs you can get with an associate’s degree, you’ll perform the same tasks over and over when you’re a dental hygienist. You’ll clean teeth, talk to patients about brushing and flossing, and assist the dentist. Many dental hygienists work part time.
See dental hygienist salaries | Search for dental hygienist jobs
Respiratory Therapist
You may need only a two-year degree, but you’ll have to take tough courses, like chemistry and anatomy to graduate with an associate’s degree in respiratory therapy. Most respiratory therapists work in hospitals, which means evening or weekend shift work, testing and treating patients with breathing issues.
See respiratory therapist salaries | Search for respiratory therapist jobs
Programmer
Within IT there are a number of highly paid positions where experience and certifications can stand in for a degree. Programmers who know .Net, Visual Basic, C# or Java see salaries above the $50,000 mark after two or three years in the field, says Ashley Waggoner, vice president of Robert Half Technology in Menlo Park, California, a professional placement firm.
See programmer salaries | Search for programmer jobs
Telecom Installer
This job may sound simple, but it takes a lot of technical know-how, so you’ll need a two-year degree or trade-school certificate in electronics. You’ll boost your salary by joining the Communications Workers of America or the International Brotherhood of Electrical Workers.
See telecom installer salaries | Search for telecom technician jobs
Industrial Engineering Technician
If you love math, but not enough to go to college for a four-year degree, consider an associate’s degree in mechanical, electrical or industrial engineering from a program accredited by ABET. Industrial engineering techs earn the most, but salaries for electrical engineering techs aren't far behind.
See industrial engineering technician salaries | Search for engineering technician jobs
Police Officer
You can get hired onto a local force if you have a high school diploma and can pass an agility test, but federal law-enforcement jobs require a college degree. Not only do police officers and sheriff’s officers make good salaries (especially with overtime options), but they can also retire after 20 or 25 years in some jurisdictions.
See police officer salaries | Search for police officer jobs
HVAC Mechanic
While you can get HVAC training from a technical school or community college, you can get into this field with just a high school diploma by doing an apprenticeship -- in fact some states require HVAC professionals to do an apprenticeship before sitting for a licensing exam. You’ll also need to become certified to handle refrigerants. An HVAC job with local government may be your best bet for a solid salary.
See HVAC mechanic salaries | Search for HVAC jobs
Paralegal
Most paralegals get into the field by earning an associate’s degree or a certificate. To be happy as a paralegal, you should enjoy reading, writing and organizing paperwork for attorneys. The highest-paying jobs for paralegals are usually at large law firms located in high-cost areas.
See paralegal salaries | Search for paralegal jobs
Nine High-Paying Jobs You Can Get with an Associate’s Degree
If school isn’t your thing, but you would love a big salary, consider a job that requires only a two-year degree. By training for a specialized healthcare, technology or trades job or heading for the police academy, you can be out of school and quickly working at a high-paying job where Monster’s Salary Wizard puts the median salary at $45,000 or more.| More Resources from Monster: |
“When you get into these programs, they can be limited, and your career can be inflexible,” he says. “There’s nothing wrong with that if you enjoy what you’re doing. But if you get tired of what you’re doing, there may not be a lot of career options open to you.”
Make sure you’re comfortable in the niche you choose before you invest two years of your life and thousands of dollars in tuition getting ready for a new career. “If you don’t like going to the dentist, you probably won’t enjoy being a dental hygienist,” Szypko says.
Test-drive the occupation by doing informational interviews and internships as soon as you’re eligible.
Among the high-paying jobs you can land with an associate’s degree are:
Registered Nurse
Registered nurses have more career flexibility than other associate’s-level healthcare workers, but there’s a catch. “You can break into the nursing field with an associate’s degree, but nurses with bachelor’s degrees are becoming so plentiful that there will be fewer jobs for those looking with an associate’s degree,” Szypko says. Seek an employer that will pay for additional education, and plan to go on for a four-year nursing degree if you want job security.
See registered nurse salaries | Search for registered nurse jobs
Dental Hygienist
Like many high-paying jobs you can get with an associate’s degree, you’ll perform the same tasks over and over when you’re a dental hygienist. You’ll clean teeth, talk to patients about brushing and flossing, and assist the dentist. Many dental hygienists work part time.
See dental hygienist salaries | Search for dental hygienist jobs
Respiratory Therapist
You may need only a two-year degree, but you’ll have to take tough courses, like chemistry and anatomy to graduate with an associate’s degree in respiratory therapy. Most respiratory therapists work in hospitals, which means evening or weekend shift work, testing and treating patients with breathing issues.
See respiratory therapist salaries | Search for respiratory therapist jobs
Programmer
Within IT there are a number of highly paid positions where experience and certifications can stand in for a degree. Programmers who know .Net, Visual Basic, C# or Java see salaries above the $50,000 mark after two or three years in the field, says Ashley Waggoner, vice president of Robert Half Technology in Menlo Park, California, a professional placement firm.
See programmer salaries | Search for programmer jobs
Telecom Installer
This job may sound simple, but it takes a lot of technical know-how, so you’ll need a two-year degree or trade-school certificate in electronics. You’ll boost your salary by joining the Communications Workers of America or the International Brotherhood of Electrical Workers.
See telecom installer salaries | Search for telecom technician jobs
Industrial Engineering Technician
If you love math, but not enough to go to college for a four-year degree, consider an associate’s degree in mechanical, electrical or industrial engineering from a program accredited by ABET. Industrial engineering techs earn the most, but salaries for electrical engineering techs aren't far behind.
See industrial engineering technician salaries | Search for engineering technician jobs
Police Officer
You can get hired onto a local force if you have a high school diploma and can pass an agility test, but federal law-enforcement jobs require a college degree. Not only do police officers and sheriff’s officers make good salaries (especially with overtime options), but they can also retire after 20 or 25 years in some jurisdictions.
See police officer salaries | Search for police officer jobs
HVAC Mechanic
While you can get HVAC training from a technical school or community college, you can get into this field with just a high school diploma by doing an apprenticeship -- in fact some states require HVAC professionals to do an apprenticeship before sitting for a licensing exam. You’ll also need to become certified to handle refrigerants. An HVAC job with local government may be your best bet for a solid salary.
See HVAC mechanic salaries | Search for HVAC jobs
Paralegal
Most paralegals get into the field by earning an associate’s degree or a certificate. To be happy as a paralegal, you should enjoy reading, writing and organizing paperwork for attorneys. The highest-paying jobs for paralegals are usually at large law firms located in high-cost areas.
See paralegal salaries | Search for paralegal jobs
USA becomes Food Stamp Nation but is it sustainable?
ReutersBy Kristina Cooke | Reuters – Mon, 22 Aug, 2011
NEW YORK (Reuters) - Genna Saucedo supervises cashiers at a Wal-Mart in Pico Rivera, California, but her wages aren't enough to feed herself and her 12-year-old son.
Saucedo, who earns $9.70 an hour for about 26 hours a week and lives with her mother, is one of the many Americans who survive because of government handouts in what has rapidly become a food stamp nation.
Altogether, there are now almost 46 million people in the United States on food stamps, roughly 15 percent of the population. That's an increase of 74 percent since 2007, just before the financial crisis and a deep recession led to mass job losses.
At the same time, the cost doubled to reach $68 billion in 2010 -- more than a third of the amount the U.S. government received in corporate income tax last year -- which means the program has started to attract the attention of some Republican lawmakers looking for ways to cut the nation's budget deficit.
While there are clearly some cases of abuse by people who claim food stamps but don't really need them, for many Americans like Saucedo there is little current alternative if they are to put food on the table while paying rent and utility bills.
"It's kind of sad that even though I'm working that I need to have government assistance. I have asked them to please put me on full-time so I can have benefits," said the 32-year-old.
She's worked at Wal-Mart for nine months, and applied for food stamps as soon as her probation ended. She said plenty of her colleagues are in the same situation.
So are her customers. Bill Simon, head of Wal-Mart's U.S. operations, told a conference call last Tuesday that the company had seen an increase in the number of shoppers relying on government assistance for food.
About forty percent of food stamp recipients are, like Saucedo, in households in which at least one member of the family earns wages. Many more could be eligible: the government estimates one in three who could be on the program are not.
"If they're working, they often think they can't get help. But people can't support their families on $10, $11, $12 an hour jobs, especially when you add transport, clothes, rent." said Carolyn McLaughlin, executive director of BronxWorks, a social services organization in New York.
The maximum amount a family of four can receive in food stamps is $668 a month. They can only be used to buy food -- though not hot food -- and for plants and seeds to grow food.
Presidents Bill Clinton, George W. Bush and Barack Obama all made efforts to raise awareness about the program and remove the stigma associated with it.
In 2004, paper coupons were replaced with cards similar to debit cards onto which benefits can be loaded. In 2008 they were renamed Supplemental Nutritional Assistance Program (SNAP) benefits though most people still call them food stamps.
Despite the bipartisan support for the program in the past, some of the recent political rhetoric has food stamp advocates worried.
Presidential hopeful Newt Gingrich last year derided Democrats as "the party of food stamps". And Republican leaders in the House of Representatives propose changing the program so that the funding is through a "block grant" to the states, rather than allowing it to grow automatically when needed due to an emergency, such as a natural disaster or economic crisis.
In some parts of the country, shoppers using food stamps have almost become the norm. In May 2011, a third of all people in Alabama were on food stamps -- though part of that was because of emergency assistance after communities were destroyed by a series of destructive tornadoes. Washington D.C., Mississippi, New Mexico, Oregon and Tennessee all had about a fifth of their population on food stamps that month.
"Food stamps have traditionally been insulated from politics," said Parke Wilde, professor of U.S. food policy at Tufts University. "But as you look over the current fiscally conservative proposals, the question is, has something fundamentally changed?"
A LOW WAGE SUPPORT PROGRAM
Over the past 20 years, the characteristics of the program's recipients have changed. In 1989, a higher percentage were on benefits than working, but as of 2009 a higher percentage had earned income.
"SNAP is increasingly work support," said Ed Bolen, an analyst at the Center on Budget and Policy Priorities.
And that's only likely to get worse: So far in the recovery, jobs growth has been concentrated in lower-wage occupations, with minimal growth in middle-income wages as many higher-paid blue collar jobs have disappeared.
And 6 percent of the 72.9 million Americans paid by the hour received wages at or below the federal minimum wage of $7.25 an hour in 2010. That's up from 4.9 percent in 2009, and 3 percent in 2002, according to government data.
Bolen said just based on income, minimum wage single parents are almost always eligible for food stamps.
"This becomes an implicit subsidy for low-wage jobs and in terms of incentives for higher wage job creation that really is not a good thing," said Arindrajit Dube, an economics professor at the University of Massachusetts Amherst, whose research shows raising the minimum wage would spur economic activity.
Until a couple of weeks ago Tashawna Green, 21, from Queens Village, New York, worked 25 hours a week at an $8.08 hourly rate at retailer Target. She is on food stamps, and says a good number of her former colleagues are too.
"It's a good thing that the government helps, but if employers paid enough and gave enough hours, then we wouldn't need to be on food stamps," said Green, who has a six-year-old daughter.
Of course, with an unemployment rate over 9 percent, some argue that those with any job at all are lucky.
Millions of Americans whose unemployment benefits have expired have to exist only on food stamps and other government aid, such as Medicaid healthcare support. [nN1E7660K4]
And even with unemployment benefits, said Jessica King, 25, from Portland, Oregon, her family juggles bills to ensure the electricity stays on. They are also selling some belongings on Craigslist to raise funds.
King's husband Stephen, 30, an electronics assembly worker, lost his job two months ago when she was seven months pregnant with their second child. It was the third time he has been laid off since 2008.
She said she was reluctant, initially, to go on food stamps.
"I felt the way our national debt was going I didn't want to be part of the problem," said King, who used to work as a cook at a faith-based non-profit organization.
"But I didn't know what else to do and I got to a point where I swallowed my pride and decided to do what was best for my daughter."
NEW YORK (Reuters) - Genna Saucedo supervises cashiers at a Wal-Mart in Pico Rivera, California, but her wages aren't enough to feed herself and her 12-year-old son.
Saucedo, who earns $9.70 an hour for about 26 hours a week and lives with her mother, is one of the many Americans who survive because of government handouts in what has rapidly become a food stamp nation.
Altogether, there are now almost 46 million people in the United States on food stamps, roughly 15 percent of the population. That's an increase of 74 percent since 2007, just before the financial crisis and a deep recession led to mass job losses.
At the same time, the cost doubled to reach $68 billion in 2010 -- more than a third of the amount the U.S. government received in corporate income tax last year -- which means the program has started to attract the attention of some Republican lawmakers looking for ways to cut the nation's budget deficit.
While there are clearly some cases of abuse by people who claim food stamps but don't really need them, for many Americans like Saucedo there is little current alternative if they are to put food on the table while paying rent and utility bills.
"It's kind of sad that even though I'm working that I need to have government assistance. I have asked them to please put me on full-time so I can have benefits," said the 32-year-old.
She's worked at Wal-Mart for nine months, and applied for food stamps as soon as her probation ended. She said plenty of her colleagues are in the same situation.
So are her customers. Bill Simon, head of Wal-Mart's U.S. operations, told a conference call last Tuesday that the company had seen an increase in the number of shoppers relying on government assistance for food.
About forty percent of food stamp recipients are, like Saucedo, in households in which at least one member of the family earns wages. Many more could be eligible: the government estimates one in three who could be on the program are not.
"If they're working, they often think they can't get help. But people can't support their families on $10, $11, $12 an hour jobs, especially when you add transport, clothes, rent." said Carolyn McLaughlin, executive director of BronxWorks, a social services organization in New York.
The maximum amount a family of four can receive in food stamps is $668 a month. They can only be used to buy food -- though not hot food -- and for plants and seeds to grow food.
Presidents Bill Clinton, George W. Bush and Barack Obama all made efforts to raise awareness about the program and remove the stigma associated with it.
In 2004, paper coupons were replaced with cards similar to debit cards onto which benefits can be loaded. In 2008 they were renamed Supplemental Nutritional Assistance Program (SNAP) benefits though most people still call them food stamps.
Despite the bipartisan support for the program in the past, some of the recent political rhetoric has food stamp advocates worried.
Presidential hopeful Newt Gingrich last year derided Democrats as "the party of food stamps". And Republican leaders in the House of Representatives propose changing the program so that the funding is through a "block grant" to the states, rather than allowing it to grow automatically when needed due to an emergency, such as a natural disaster or economic crisis.
In some parts of the country, shoppers using food stamps have almost become the norm. In May 2011, a third of all people in Alabama were on food stamps -- though part of that was because of emergency assistance after communities were destroyed by a series of destructive tornadoes. Washington D.C., Mississippi, New Mexico, Oregon and Tennessee all had about a fifth of their population on food stamps that month.
"Food stamps have traditionally been insulated from politics," said Parke Wilde, professor of U.S. food policy at Tufts University. "But as you look over the current fiscally conservative proposals, the question is, has something fundamentally changed?"
A LOW WAGE SUPPORT PROGRAM
Over the past 20 years, the characteristics of the program's recipients have changed. In 1989, a higher percentage were on benefits than working, but as of 2009 a higher percentage had earned income.
"SNAP is increasingly work support," said Ed Bolen, an analyst at the Center on Budget and Policy Priorities.
And that's only likely to get worse: So far in the recovery, jobs growth has been concentrated in lower-wage occupations, with minimal growth in middle-income wages as many higher-paid blue collar jobs have disappeared.
And 6 percent of the 72.9 million Americans paid by the hour received wages at or below the federal minimum wage of $7.25 an hour in 2010. That's up from 4.9 percent in 2009, and 3 percent in 2002, according to government data.
Bolen said just based on income, minimum wage single parents are almost always eligible for food stamps.
"This becomes an implicit subsidy for low-wage jobs and in terms of incentives for higher wage job creation that really is not a good thing," said Arindrajit Dube, an economics professor at the University of Massachusetts Amherst, whose research shows raising the minimum wage would spur economic activity.
Until a couple of weeks ago Tashawna Green, 21, from Queens Village, New York, worked 25 hours a week at an $8.08 hourly rate at retailer Target. She is on food stamps, and says a good number of her former colleagues are too.
"It's a good thing that the government helps, but if employers paid enough and gave enough hours, then we wouldn't need to be on food stamps," said Green, who has a six-year-old daughter.
Of course, with an unemployment rate over 9 percent, some argue that those with any job at all are lucky.
Millions of Americans whose unemployment benefits have expired have to exist only on food stamps and other government aid, such as Medicaid healthcare support. [nN1E7660K4]
And even with unemployment benefits, said Jessica King, 25, from Portland, Oregon, her family juggles bills to ensure the electricity stays on. They are also selling some belongings on Craigslist to raise funds.
King's husband Stephen, 30, an electronics assembly worker, lost his job two months ago when she was seven months pregnant with their second child. It was the third time he has been laid off since 2008.
She said she was reluctant, initially, to go on food stamps.
"I felt the way our national debt was going I didn't want to be part of the problem," said King, who used to work as a cook at a faith-based non-profit organization.
"But I didn't know what else to do and I got to a point where I swallowed my pride and decided to do what was best for my daughter."
Subscribe to:
Posts (Atom)