complete disincentive to work—but combined with how other programs reduce benefits as income increases, it

adds to the problem. SNAP, however, does try to address the poverty trap with its own set of work requirements

and time limits.

Why give debit cards and not just cash? Part of the political support for SNAP comes from a belief that since

recipients must spend the the cards on food, they cannot “waste” them on other forms of consumption. From

an economic point of view, however, the belief that cards must increase spending on food seems wrong-

headed. After all, say that a family is spending $2,500 per year on food, and then it starts receiving $1,000 per

year in SNAP aid. The family might react by spending $3,500 per year on food (income plus aid), or it might

react by continuing to spend $2,500 per year on food, but use the $1,000 in food aid to free up $1,000 that it
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