Question

1 of the following government intervention programs:

• Supplemental Nutrition Assistance Program (SNAP)

WRITE a 700- to 1,050-word summary of your analysis. Identify the intervention and the market failure leading up to the intervention. Complete the following in your paper:

• Analyze the arguments for government intervention as opposed to arguments for market-based solutions.Hint:See the information about market failures.
• Examine who has been helped and who has been hurt by the selected government intervention.
• Examine externalities and unintended consequences of such intervention. For example, consider whether the SNAP program and health coverage for low-income families result in higher future tax revenues because low-income children grow up healthier and produce higher incomes over their lifetimes.
• Analyze whether cost of the intervention you selected as a share of GDP or the number of participants is increasing,decreasing, or varies with the state of the economy, based on the cost trend(or number of participants) since its inception or since 2000.
• Analyze credible economists’ opinions on the success or failure of the intervention that you chose in achieving its objectives.
• Recommend whether the program should be continued as is, discontinued, or modified based on your conclusions. Defend your recommendation.

Answer 1

The SNAP program serves as an important federal food safety net for many in the U.S. The supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, provides an assistance of food-purchasing for low- and no-income people living in U.S. It is the largest program in the domestic hunger safety net. The Food and Nutrition Service works in coordination with nutrition educators, State agencies, and neighbourhood and faith-based organizations to ensure that those eligible for nutrition assistance can make informed decisions about applying for the program and can avail the program benefits.

The SNAP program provides the potential for many families to purchase healthier food. Other USDA nutrition assistance programs such as the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) are restricted to “healthier” foods consistent with the Dietary Guidelines for Americans. However, SNAP has very few restrictions on the type of foods that can be purchased, giving the consumer more flexibility and freedom of choice. With flexibility comes the potential to make either healthy or less healthy choices. The SNAP-Ed (education) program, also funded by the USDA, represents the most far-reaching nutrition education program available for low-income consumers.