As of February 2023, more than 630,000 Massachusetts households faced a loss of about a third of what they had received in SNAP benefits over the past two years. For many, this means working extra hours and struggling to meet needs on a daily basis. For undocumented immigrants, it can mean finding informal work paid in cash under the table, often at rates far below minimum wage without the benefits of insurance and legal protection. The lack of accessibility to government-issued food stamps and other related programs only increases the burden to overcome these financial challenges.
SNAP stands for the Supplemental Nutrition Assistance Program. It is a federal nutrition program (formerly known as Food Stamps) that provides eligible residents with monthly financial assistance to purchase food and other benefits that help you save. SNAP eligibility is based on income and household size. The gross income limit is equal to 200% of the current Federal Poverty Level and is the amount of income the household has before taxes and deductions.
With a transition into recovery from a global pandemic amid political tension with distinct agendas to strengthen global resiliency and democratic renewal, the United States has been experiencing inflation on unprecedented levels. The rate of inflation has exacerbated disparities experienced by different economic and demographic groups across the nation, creating challenges for low-income households, especially immigrants. With an increase in prices for the basic necessities of daily life, low-income families find themselves grappling with challenges in the face of increasing economic insecurities.
Defined as the “general increase in the overall price level of the goods and services in the economy” by the Federal Reserve, inflation has and continues to play a role in the U.S. economy that widens economic inequalities and hampers upward social mobility. Historic parallels with the current inflation issue in the U.S., such as the aftermath of both World War l and World War ll, reveal the consequential results in supply shortages with the increased demand after the elimination of price controls enforced by the government. Inflation today continues to follow this trend of an imbalanced supply-demand relationship and currency devaluation, where the combination of limited financial resources, rising costs, and limited employment opportunities can make low-income families, including immigrants, particularly susceptible to the negative effects of inflation.
At the height of COVID-19 in 2020 and 2021, the nation’s economy took a hit as the demand for many products dropped and remained low as a result of the government restrictions to limit the spread of the pandemic. When the government gradually relaxed on these restrictions as they shifted to a post-pandemic economy, the White House commented how the “demand fueled by pent-up savings, relief funds, and low-interest rates—will generate not just somewhat faster actual inflation but higher inflationary expectations too.” Inflation typically increases coming out of downturns as demand outpaces supply early in the recovery, but this tendency has been exacerbated by COVID-19 impacts.
The pandemic’s financial toil has severely impacted the US economy, but the impact can be seen on an individual level as well. Many places shut down for almost a year, resulting in tens of millions of people losing their jobs in the early stages of the crisis. The case manager at a Boston social service agency shared this story of such a family.
Mr. & Mrs. Lee immigrated from China in 2014. They live in Boston’s Chinatown and both worked. Mr. Lee’s left hand was badly burned by hot oil in a 2019 accident. He lost his job and remains unable to work. Mrs. Lee lost her housekeeper job in March 2020 due to the hotel industry collapse caused by the pandemic. They had no money for food, rent and utilities by April 2020.Totally distraught, the husband attempted suicide twice. The couple was referred by the Chinese Progressive Association (CPA) to us for assistance on February 19, 2021. We helped apply for SNAP and fuel assistance. We assisted Mr. Lee to apply for SSDI. Emergency food purchase gift cards were given to help them for immediate nutrition.
As the labor market tightened during 2021 and 2022, the ratio of job vacancies to unemployment increased. While workers demanded better pay, firms began to increase prices. As a result, the government had no other option but to print more money to keep the economy alive. According to USA Today, the Federal Reserve’s goal is to maintain markets when they are caught up in fear. More money supply and lower interest rates also make credit easier to obtain. Through fiscal policy arrangements, they generated a fund for stimulus checks that served as a short-term solution to keep the economy running, which eventually resulted in high inflation rates.
Beyond socioeconomic levels, the racial divide has worsened the experience of inflation inequalities for minority groups. Hispanic homes tend to appropriate more of their budget on transportation, where factors such as gas prices and auto insurance are more susceptible to inflation. Other necessities, such as food and rent, are imposed as barriers to many of these minority communities. A poll conducted by Harvard T.H. Chan School of Public Health in 2022 shows how “a wider share of Black renters (16%) say they have been evicted or threatened with eviction in the past year than white renters (9%),” and how low-income Asian adults reported “serious problems paying their mortgage or rent (32%), serious problems affording medical care or prescription drugs (24%), and serious problems affording food (28%).” These inflationary pressures have been slightly alleviated after the passing of the Inflation Reduction Act with an increase in employment participation and wage growth, but the racial and ethnic disparities continue to persist. The disproportionate amount of job losses during the recession and lack of financial support for affordable housing are all clear indicators of how, despite economic progress, persistent racial and ethnic disparities remain after the societal shift brought on by the COVID-19 pandemic.
