JP Morgan Makes Big Bucks from Food Stamp Growth, Then Hires Workers in India with Our Tax Dollars

[deminks]

http://www.alternet.org/newsandviews/article/446636/jp_morgan_makes_big_bucks_from_food_stamp_growth%2C_then_hires_workers_in_india_with_our_tax_dollars/

JP Morgan is the largest processor of food stamp benefits in the United States. JP Morgan has contracted to provide food stamp debit cards in 26 U.S. states and the District of Columbia. JP Morgan is paid for each case that it handles, so that means that the more Americans that go on food stamps, the more profits JP Morgan makes. Yes, you read that correctly. When the number of Americans on food stamps goes up, JP Morgan makes more money. In the video posted below, JP Morgan executive Christopher Paton admits that this is "a very important business to JP Morgan" and that it is doing very well. Considering the fact that the number of Americans on food stamps has exploded from 26 million in 2007 to 43 million today, one can only imagine how much JP Morgan's profits in this area have soared. But doesn't this give JP Morgan an incentive to keep the number of Americans enrolled in the food stamp program as high as possible?

(snip)

So what happens if you have a problem with your food stamp debit card?

Well, you call up a JP Morgan service center. When you do this, there is a very good chance that you are going to be helped by a JP Morgan call center employee in India.

That's right - it turns out that JP Morgan is saving money by "outsourcing" food stamp customer service calls to India.

(end snip)

[Duwamish]

1. This is so obscene.

There should be a requirement that the help desk is here in the States employing American workers.

Hey, Boehner, where are the jobs? India.

[drm604]

2. You know what's interesting.

I can't recall the last time I've heard any significant right-wing complaining about food stamps. They complain about Social Security. They complain about Medicare. They complain about "welfare". But I can't recall many complaints specifically about food stamps, and I can't recall any recent legislative attacks on the food stamp program.

I wonder why that is? You don't suppose it could be because JP Morgan makes big money off of it and JP Morgan (among others) has significant say in what the right-wing message will be?

It's just one more thing highlighting the hypocrisy of the right and showing what their real agenda is.

[Hannah Bell]

6. yep. if they can make money off it, it's great. that's why they love charters.

[drm604]

7. Of course it's not just JP Morgan.

The big agribusinesses also benefit from food stamps.

[Hannah Bell]

8. so do grocery stores, mini-marts, farmers' markets, & small food processors.

as well as the people who get to eat.

i take your point, but i think there's more of a case that agribusiness gets special benefits from school lunches or the old commodity foods program than food stamps.

[Hydra]

3. Privativing welfare

Not only is it obscene, but JP Morgan has a motive to expand the ranks of the hopelessly poor to keep their profits flowing.

[Kat45]

4. I find it disgusting that a private company makes money off of food stamps.

Don't like the whole 'debit card' process either. Is this something new, a private company getting a piece of the action?

[drm604]

9. The use of a debit card instead of stamps started in the late 90s.

At least, it did according to Wikipedia. Also, it's now called the "Supplemental Nutrition Assistance Program" since it doesn't actually use stamps anymore.

http://en.wikipedia.org/wiki/Food_stamps#Food_Stamp_Act_of_1977

While the privatization is a bad idea, the use of debit cards instead of stamps actually makes some sense, at least to me. It saves money and resources by not having to print and mail large numbers of stamps every month.

[Hannah Bell]

5. more ruling class bullshit

[WinkyDink]

10. OMG. I had NO IDEA that it wasn't the GOVT providing these cards. Another day in Outrage City.

[Liberal_in_LA]

11. WHAT!!!!???

[OhioChick]

12. Sickening n/t

[Starry Messenger]

13. omfg.

So many levels of horror here.

[leftstreet]

14. K&R