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Old 01-19-2011, 07:56 AM
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The More Americans That Go On Food Stamps The More Money JP Morgan Makes

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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?

There are just some things that are a little too "creepy" to be "outsourced" to private corporations. The JP Morgan executive in the interview below does his best to put a positive spin on all this, but it just seems really unsavory for a big Wall Street bank to be making so much money off of the suffering of tens of millions of Americans....

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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?

There are just some things that are a little too "creepy" to be "outsourced" to private corporations. The JP Morgan executive in the interview below does his best to put a positive spin on all this, but it just seems really unsavory for a big Wall Street bank to be making so much money off of the suffering of tens of millions of Americans....

So if unemployment goes down will this ruin JP Morgan's food stamp business?

Well, apparently not. In the interview Paton says that 40% of food stamp recipients are currently working, and he seems convinced that there could be further "growth" in that segment.

So is this what America is turning into?

A place where tens of millions of the unemployed and the working poor crawl over to Wal-Mart and the dollar store every month to use the food stamp debit cards provided to them by JP Morgan?

It turns out that JP Morgan also provides child support debit cards in 15 U.S. states and they also provide unemployment insurance benefit debit cards in seven states.

Apparently states have found that they can save millions of dollars by "outsourcing" the provision of these benefits to big financial firms like JP Morgan.

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.

When ABC News asked JP Morgan about this, the company would not tell ABC News which states have customer service calls sent to India and which states have them handled inside the United States....

Quote:
JP Morgan is the only one today still operating public-assistance call centers overseas. The company refused to say which states had calls routed to India and which ones had calls stay domestically. That decision, the company said, was often left up to the individual states.
JP Morgan has been moving some of these call center jobs back inside the United States due to political pressure, but this whole situation is a really good example of what the "global economy" is doing to middle class Americans.

Just try to imagine the irony - a formerly middle class American that has lost a job to outsourcing calls up to get help with food stamp benefits only to be answered by a call center employee in India.

Welcome to the global economy, eh?

But wait, there is more.

It has just been announced that JP Morgan has admitted that they wrongly foreclosed on over a dozen military families and that they have been overcharging "thousands" of other military families on their mortgages.

Ouch.
Read more http://theeconomiccollapseblog.com/a...p-morgan-makes
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Old 01-19-2011, 10:52 AM
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Given that JPM simply provides logistical support, of a nature required by the USDA having phased out paper coupons for most of the country, they are not in a position to directly affect the the ranks of those receiving benefits.

Has it been suggested that they are engaged in behind the scenes activities designed to swell such ranks?

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Old 01-19-2011, 11:04 AM
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If private bankers or corporations are doing the gov job for profits, why not removing all unnecessary gov departments, at least it will save taxpayers money.
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Old 01-19-2011, 01:58 PM
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I'm not sure what your concern is Natural.
If the concern is that JP Morgan is skimming profit by being the service provider,
I do not see how giving Morgan more control over program authorizations addresses the issue.
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Old 01-19-2011, 02:07 PM
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Originally Posted by Natural Elements View Post
If private bankers or corporations are doing the gov job for profits, why not removing all unnecessary gov departments, at least it will save taxpayers money.
Not sure what you mean.

Are you here suggesting that the administration of the Food Stamps program be out-sourced to private enterprise?

Or, that the program be eliminated?

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Old 01-19-2011, 02:46 PM
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To me it looks like JP Morgan is making money on poor people, instead of using the tresor departement to send the food stamps or a Visa card directly to the families in troubles.

Same system with the unemeployment benefits, they send you a rechargeable Visa card.
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Old 01-19-2011, 03:00 PM
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The paper coupons are more costly to use than a debit card; hence, they've been virtually eliminated.

Food Stamps debit cards need to be serviced just like any other. They are not one-time pre-stored value cards, but work just like the debit card linked to any other demand account, such as a checking of share draft account. As monies are spent, the account balance is debited; as new monthly benefits are accrued, the account balance is credited.

This requires the use of the same card processing networks as do the usual debit and credit cards. For a governmental agency to develop and operate such a network would be cost prohibitive.

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Old 01-19-2011, 04:19 PM
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Nobody knows how much JP Morgan contracted/charged w/to the governement to send these cards to the families.

Plus if you read the article, it is not only for food stamps but for many other social payments.

My point is that rich people don't like to pay for social benefits, but it will at the end benefits them one way or another.
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Old 01-19-2011, 06:51 PM
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Originally Posted by Natural Elements View Post
My point is that rich people don't like to pay for social benefits, but it will at the end benefits them one way or another.
I think that is a huge over generalization. But the point is that the government can't do it and hasn't done it efficiently. If we want to cut government costs what do we really care how much profit someone makes? If the government was doing something for $100 and a private firm does it for $50 does it really matter if their profit is $1 or $49? It is too our advantage to have the firm profitable because it will drive competitors into the market and thus lower the cost to the taxpayers further.
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Old 01-20-2011, 07:52 AM
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Originally Posted by JakeMoore View Post
I think that is a huge over generalization. But the point is that the government can't do it and hasn't done it efficiently. If we want to cut government costs what do we really care how much profit someone makes? If the government was doing something for $100 and a private firm does it for $50 does it really matter if their profit is $1 or $49? It is too our advantage to have the firm profitable because it will drive competitors into the market and thus lower the cost to the taxpayers further.
That's just assumptions, because you don't have the numbers.

I believe if a bank is doing a job for the US gov, it is profitable for them, and if you watched the video JP Morgan don't hide the fact that they are making money on poor people.

That's not generalization to say that rich people don't like to pay for social benefits, but it will at the end benefits them one way or another, that's a fact.

For example, just ask yourself why there is very high activity in advertising by the corporations when people are reiumbursed from their tax refunds...
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Old 01-20-2011, 09:12 AM
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Of course my numbers were guesses. My point was it does not matter what they make if there is savings to the government.

No, plenty of rich people don't mind paying for social benefits. And plenty of others freely give to charities that support the poor.

I see no issue with businesses making money off of their customers. Someone has to meet their needs. We should encourage more people into those markets, not less. More competition equals lower cost.
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Old 01-20-2011, 09:33 AM
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Originally Posted by Natural Elements View Post
I believe if a bank is doing a job for the US gov, it is profitable for them, and if you watched the video JP Morgan don't hide the fact that they are making money on poor people.
How is providing a contracted service to the government and getting paid for it "making money on poor people"? How much more aid could the poor be getting if the government serviced these accounts themselves at a higher cost than JPM charges them?

It's not as if it's JPM putting economy-killing policies in place for their own profits. The government is doing that.
 
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Old 01-20-2011, 10:06 AM
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Well, you are correct that the government is ineffecient, which is unfortunate. If the governement were as efficient in adminstering this program as JP Morgan, then the "profits" could be put back into the system to provide more assistance to those who need it, which is after all the purpose of the program. Because the government is inefficient the extra benefit goes to the executives at JP Morgan.

Also, we don't know if there was a bidding process for other companies to be able to administer this program or if it is another case of cronyism.
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Old 01-20-2011, 01:27 PM
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The extra profits go to the shareholders of JP Morgan. That's what people who are outraged by corporate profits fail to see. Sure executive bonuses are tied to some standard...probably profits, but they only get a small fraction. Incentive pay is one of the most effective ways to to increase owner profits as long as you use the right measures.
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Old 01-20-2011, 01:50 PM
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Quote:
Originally Posted by Natural Elements View Post
If the governement were as efficient in adminstering this program as JP Morgan, ...
As noted, that's not possible here.

Establishing and operating a new transactions processing network for the sole purpose of handling government funded transactions is cost prohibitive.

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Old 01-20-2011, 09:43 PM
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A development here locally which is even more interesting than the use of these debit cards at huge chains like target and WalMart is the increasing ability to use them to make purchases from local food coopts and farmer's markets. I have also read this is occurring in the larger inner cities too, thus providing new markets to small farmers and providing fresh local in season fruits and vegetables to those poor inner city communities which have been largely abandoned by the larger food chains.
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Old 01-21-2011, 07:22 AM
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Thanks everybody, there are some great point of views in this thread
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Old 01-21-2011, 08:40 AM
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I'm just glad to see it hasn't been turned into an opportunity to bash food subsidy programs in general.
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