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In: Economics

Discuss reasons why many states have moved from mailing food stamps to recipients to sending electronic...

Discuss reasons why many states have moved from mailing food stamps to recipients to sending electronic debit cards. Has this change increased or decreased the ordeal mechanism associated with food stamps?

Solutions

Expert Solution

The states have moved from mailng food stamps to recepients to sending electronic debit cards and this has definately decreased the ordeal mechanism associated with food stamps as it has removed the stigma associated with using paper stamps to cards which are used much alike in the same manner people use debit and credit cards while making payments.

Electronic benefits have replaced food stamp and additionally,some stamps have started using debit cards for medicaid and and other welfare programmes too. The recipients of food stamp like to use debit cards because it removes stigma and is a faster means of payments in stores,thereby saving time for both the recipient and the cashier.

The elctronic debit cards is preferred as it reduce fraud and abuse by eliminating paper stamps which could be stolen,lost and sold in the black market and used to buy narcotics.In this system,the benefits are directly transferred to the recipients account and the recipients can make payments in grocery stores through using a debit card which is secured by a 3-4 digit personal identification number thus making it more secure.

It also saves time of the recipient and the state as people do not have to visit the office to collect their food stamp which specially benefits elderly people and removes any lags so that, everyone can now participate in the program and noone is left behind.


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