ModernityBlog

“Nearly all men can stand adversity, but if you want to test a man’s character, give him power.” Abraham Lincoln

37 Million Americans And JP Morgan.

with 15 comments

JP Morgan are making big profits as Americans become poorer and unemployed:

“Take Indiana. JP Morgan gets 62 to 64 cents for each food stamp case handled monthly there. With 296,245 cases right now, that means the state is paying JP Morgan $183,672 a month on top of any other fees it collects.”

The Economic Collapse has more:

“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?”

(H/T: Andrew Murphy)

Written by modernityblog

25/01/2011 at 23:38

15 Responses

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  1. 62-64 cents a month to manage a card seems to me a pretty good deal. I’m shocked that Government is even tangientally involved in something so effeicient.

    mesquito

    26/01/2011 at 01:06

  2. Your point is ???? JP Morgan is not a charity. If the government can afford a more cost effective provider it will do so.

    Beakerkin

    26/01/2011 at 01:41

  3. Perhaps JPM was the low bidder? I really don’t see the big deal here, Mod. A few dimes’ transaction cost per hundreds of dollars just seems pretty good to me. And it’s probably way cheaper than the old way of printing and distributing food vouchers.

    Who should be managing the cards, and why?

    mesquito

    26/01/2011 at 01:46

  4. 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.

    Well, since no indication of given of their profit in this transaction, we have only our imaginations.

    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?”

    Call me a loony free-market apologist, but I think JP Morgan would rather be providing finacial services to financially sound Americanos than processing welfare cards for a fraction of a penny on the dollar.

    mesquito

    26/01/2011 at 01:54

  5. Why should banks be doing this to begin with. Proves that privatization is not a panacea and that the government should do some things.

    As the right wing libertarians at Lew Rockwell.com said,

    “There are just some things that are a little too “creepy” to be “outsourced” to private corporations.”

    http://www.lewrockwell.com/rep2/more-americans-on-food-stamps.html

    Andrew Murphy

    26/01/2011 at 02:21

  6. I didn’t want to spell out the bleeding obvious, which is that JP Morgan is profiteering from the misery of others.

    As more Americans become poorer, leading to food stamps, needing a few dollars to make it through a difficult week, JP Morgan is benefiting.

    As more Americans become unemployed, their dignity lost and needing food stamps just to get by, JP Morgan is revelling in it.

    I don’t think Banks like JP Morgan should be benefiting, positively salivating about people getting poorer and becoming unemployed, all for the sake of JP Morgan’s profits…

    modernityblog

    26/01/2011 at 02:24

  7. Who should be processing these cards, mod?

    mesquito

    26/01/2011 at 02:37

  8. A: Anyone, but NOT benefiting from increased unemployment…..excessive profits made on the back’s of people losing their jobs is obscene.

    modernityblog

    26/01/2011 at 02:40

  9. And nobody is telling me JPM’s profit on this.

    $183,00 a month?? This is suppose to drive me to the barricades?

    Are we, to ameliorate some bizarre Lefty moral outrage, supposed to go back to the humilating, corrupt, and comically inefficient food stamps of the 1970s?

    mesquito

    26/01/2011 at 02:46

  10. Anyone? What if JPM, with their massive capital investments that allow them to process electronic card accounts, put in the lowest bid?

    mesquito

    26/01/2011 at 02:53

  11. Mods

    JP Morgan is a for profit entity with a responsibility to its share holders.

    If you want to be outraged feel free to start with armies of social workers politically indoctrinated on the far left and making their entire career off of the misery of others and fostering learned dependency. If you do not believe me, ask yourself why grad students need political courses chock full of Marx to serve the public.

    Somehow my peers do quite well without political indoctrination. Maybe the training for social worker should contain
    more courses about the communities they are apt to serve.

    Beakerkin

    26/01/2011 at 10:46

  12. Beakerkin,

    I went to a state university and my major was in political science, the only exposure I had to Marx was a brief half a lecture on how Communist Manifesto had an impact on 19th century and I also had a very brief mention of Marx while studying philosophy when the subject of materialism came up. So I can say from my end there was hardly any “politically indoctrinated” agenda on the part of my university.

    Likewise, I personally know two social workers and both of them are Republicans….btw

    Andrew Murphy

    26/01/2011 at 19:00

  13. Andrew

    Show me these rare GOP Social Workers. I have never seen one in NYC. Furthermore, I actually did assist a grad student recently
    with her studies.

    What relevance to public service does Karl Marx, Eugene Debs and so forth have to public service.

    Beakerkin

    29/01/2011 at 12:37

  14. “What relevance to public service does Karl Marx, Eugene Debs and so forth have to public service.”

    Not sure, but maybe it helps you THINK?

    I find people that don’t read widely or take the trouble to THINK, have problems with subtlety, thinking thru issues, seeing the wood for the trees, etc

    modernity

    29/01/2011 at 14:26

  15. Beakerkin,

    The two I know live in Tennessee.

    Just for fun, I went and looked up Harvard Department of Sociology just to see what sort of reading and courses they give, see link below. Due notice the abscence of Karl Marx

    http://www.wjh.harvard.edu/soc/pdfs/Spring_Courses.pdf

    I use Harvard as a example since that is always used as an example of being the Ground Zero for “socialistic” thinking according to right wing radio jocks.

    Andrew Murphy

    29/01/2011 at 15:02


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