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I have a friend who just three years ago was making six figures as a freelance artist. Now he's down to $1,000 a month when he's lucky, has sold everything he owns except his computer (because he uses it for work) and can't move to a cheaper place (he's already living in an efficiency) because he literally can't afford to move. I've been trying to talk him into applying for food stamps; so far, he hasn't.

And I don't think he's all that unusual. Right now, I know people who are selling their blood, lying their way into marketing focus groups, and trash-picking stuff to sell on eBay. (If I don't get a job before the latest unemployment extension runs out, it won't be long before I join them.)

It's really, really bad out here and getting worse. Mr. President, stop giving money to bankers and help our desperate unemployed:

CAPE CORAL, Fla. — After an improbable rise from the Bronx projects to a job selling Gulf Coast homes, Isabel Bermudez lost it all to an epic housing bust — the six-figure income, the house with the pool and the investment property.

Now, as she papers the county with résumés and girds herself for rejection, she is supporting two daughters on an income that inspires a double take: zero dollars in monthly cash and a few hundred dollars in food stamps.

With food-stamp use at a record high and surging by the day, Ms. Bermudez belongs to an overlooked subgroup that is growing especially fast: recipients with no cash income.

About six million Americans receiving food stamps report they have no other income, according to an analysis of state data collected by The New York Times. In declarations that states verify and the federal government audits, they described themselves as unemployed and receiving no cash aid — no welfare, no unemployment insurance, and no pensions, child support or disability pay.

Their numbers were rising before the recession as tougher welfare laws made it harder for poor people to get cash aid, but they have soared by about 50 percent over the past two years. About one in 50 Americans now lives in a household with a reported income that consists of nothing but a food-stamp card.

“It’s the one thing I can count on every month — I know the children are going to have food,” Ms. Bermudez, 42, said with the forced good cheer she mastered selling rows of new stucco homes.

Members of this straitened group range from displaced strivers like Ms. Bermudez to weathered men who sleep in shelters and barter cigarettes. Some draw on savings or sporadic under-the-table jobs. Some move in with relatives. Some get noncash help, like subsidized apartments. While some go without cash incomes only briefly before securing jobs or aid, others rely on food stamps alone for many months.

The surge in this precarious way of life has been so swift that few policy makers have noticed. But it attests to the growing role of food stamps within the safety net. One in eight Americans now receives food stamps, including one in four children.



Howard Dean: These Are Two Pieces of Real Reform

Howard Dean writes at DK why he's so encouraged by the Senate healthcare reform bill. And remember, unlike us, he's actually worked on providing universal care:

Medicare is a government-run, single-payer system. What the Senate is working out could move the ball forward, if people under 65 will -- for the first time -- have the option of signing up for such a program under certain circumstances. The specifics of those circumstances matter a lot. The under-65 pool should not be limited to high-risk people only, and subsidies will ultimately be needed for those who cannot afford the premiums.

The other groundbreaking piece of the current Senate proposal is that a significant number of Americans over 55 who do not have access to health insurance today, would be able to get it within six months of the final bill being signed. Of course, more reform and access to choices are needed. However, this proposal moves us in a very good direction. The realities are Congress rarely passes reform that is not incremental and it is important that the increments they pass are headed in a direction we ultimately want to go. Expanding Medicare would do that.

The proposal to expand the Federal Employee Healthcare system could also be a step in the right direction. While I am not a fan of the private health insurance market, with the proper regulations, this could work. The OPM has done a reasonably good job of running the current plan, but Senator Rockefeller’s proposal to require insurance companies to spend 90 percent of their revenues on healthcare is absolutely essential.

This is the Medical Loss Ratio amendment that Jay Rockefeller and Al Franken are working on. It's the most important piece in this compromise. Without it, it won't work.

We must continue to work towards a system that gives Americans real choices. The truth is America already has a socialist system (the Veterans Administration with 25 million people). We already have a single-payer system (Medicare with 50 million people). And we already have a private insurance system (with almost 50 million Americans uninsured). The American people can reform healthcare by making real choices, but Congress must let us have those choices.

Both the current Senate proposal and the House bill will give us choices that Americans did not have before. The central problem will be that not enough Americans will have those choices. So while we may be able to take big steps in the right direction – the fight for healthcare reform does not end here. We must continue to pressure Congress to pass real reform.



Obama on This Week: Insurance Mandate Is Not A Tax Increase

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I don't know that it matters how cleverly the president sidestepped George Stephanopoulos on this question: People are still going to view it as a tax increase, and they're angry about it:

STEPHANOPOULOS: You were against the individual mandate...

OBAMA: Yes.

STEPHANOPOULOS: ...during the campaign. Under this mandate, the government is forcing people to spend money, fining you if you don’t. How is that not a tax?

OBAMA: Well, hold on a second, George. Here -- here's what's happening. You and I are both paying $900, on average -- our families -- in higher premiums because of uncompensated care. Now what I've said is that if you can't afford health insurance, you certainly shouldn't be punished for that. That's just piling on. If, on the other hand, we're giving tax credits, we've set up an exchange, you are now part of a big pool, we've driven down the costs, we've done everything we can and you actually can afford health insurance, but you've just decided, you know what, I want to take my chances. And then you get hit by a bus and you and I have to pay for the emergency room care, that's...

STEPHANOPOULOS: That may be, but it's still a tax increase.

OBAMA: No. That's not true, George. The -- for us to say that you've got to take a responsibility to get health insurance is absolutely not a tax increase. What it's saying is, is that we're not going to have other people carrying your burdens for you anymore than the fact that right now everybody in America, just about, has to get auto insurance. Nobody considers that a tax increase. People say to themselves, that is a fair way to make sure that if you hit my car, that I'm not covering all the costs.

STEPHANOPOULOS: But it may be fair, it may be good public policy...

OBAMA: No, but -- but, George, you -- you can't just make up that language and decide that that's called a tax increase. Any...

STEPHANOPOULOS: Here’s the...

OBAMA: What -- what -- if I -- if I say that right now your premiums are going to be going up by 5 or 8 or 10 percent next year and you say well, that's not a tax increase; but, on the other hand, if I say that I don't want to have to pay for you not carrying coverage even after I give you tax credits that make it affordable, then...

STEPHANOPOULOS: I -- I don't think I'm making it up. Merriam Webster's Dictionary: Tax -- "a charge, usually of money, imposed by authority on persons or property for public purposes."

OBAMA: George, the fact that you looked up Merriam's Dictionary, the definition of tax increase, indicates to me that you're stretching a little bit right now. Otherwise, you wouldn't have gone to the dictionary to check on the definition. I mean what...

STEPHANOPOULOS: Well, no, but...

OBAMA: ...what you're saying is...

STEPHANOPOULOS: I wanted to check for myself. But your critics say it is a tax increase.

OBAMA: My critics say everything is a tax increase. My critics say that I'm taking over every sector of the economy. You know that. Look, we can have a legitimate debate about whether or not we're going to have an individual mandate or not, but...

STEPHANOPOULOS: But you reject that it’s a tax increase?

OBAMA: I absolutely reject that notion.



Mike's Blog Roundup

TV News Lies: Kafka for Dummies: The absurd debate about torture

Donklephant: Supreme Court Betting Pool

Balloon Juice: The Screaming of the Lambs

Helena Cobban: There are plenty of disagreements between Obama and Netanyahu, who will have their first meeting on Monday

The Rude Pundit: Why is this pro-choice commencement guest different than others?

Lance Mannion: Death will not be taking a holiday