Minimum Wage Boost Could Cut Food Stamp Spending by $4.6B

Minimum Wage Boost Could Cut Food Stamp Spending by $4.6B
Photo (cc) by David McKelvey

Don’t like food stamps? Raise the minimum wage. That’s the finding of a new study by the Center for American Progress, a left-leaning Washington, D.C., think tank.

The report says a hike in the minimum wage from $7.25 to $10.10 per hour, as proposed by the Obama administration, would cut the federal food stamp bill by $4.6 billion a year and reduce enrollment in the program by up to 9.2 percent.

The report is one of the first to study how increasing the federal minimum wage would impact the Supplemental Nutrition Assistance Program or SNAP, commonly known as food stamps. SNAP reaches about 1 in 7 Americans and had a hefty $78 billion price tag in 2011.

University of California economist Michael Reich co-authored the Center for American Progress report. According to The Washington Post:

“What is the best way to make people independent and be able to sustain their standard of living without having to depend on government support?,” Reich asked. “It turns out that raising the minimum wage helps make people more independent while saving the government money.”

It’s estimated that taxpayers spend about $7 billion a year to subsidize low-wage fast-food workers – which we talked about here — and $900 million a year helping bank tellers – which we discussed here. SNAP represents a chunk of those funds.

Opponents of an increased minimum wage argue that it would eliminate some jobs and slow job growth.

What do you think of the reported link between hiking the minimum wage and decreased dependency on government programs, like food stamps? Share your comments below or on our Facebook page.

Popular Articles

The Secret to Getting Dollar Store Items for Free
The Secret to Getting Dollar Store Items for Free

If you know where to look, you can score freebies at the dollar store regularly.

16 Uses for WD-40 That Save Money, Time or Headaches
16 Uses for WD-40 That Save Money, Time or Headaches

WD-40 is handy in a lot more situations than you likely realize.

8 Restaurant Chains With Discounts for Diners Age 50 or Older
8 Restaurant Chains With Discounts for Diners Age 50 or Older

Some restaurant chains offer great senior discounts. Here’s what you need to know.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments