Another cost of economic ignorance

Former Federal Reserve Chairman Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

The Older Americans Act funds several different programs intended to help older adults age in place, but its most well-known ones are related to food services: one for home-delivered meals, another for meals served in congregate settings, like senior centers, and the Nutrition Services Incentive Program, which allows programs to purchase fresh, local produce, dairy or proteins for meals.

Alan Greenspan: “There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody.”

While home-delivered meals and congregate settings received increases in fiscal 2024, the nutrition services incentive program received a cut, surprising advocates.

The program is intended to incentivize states to serve more meals because the amount of money it gets is based on how many meals it served the previous year.

“If you’re discouraging incentives, you’re actually lowering meal counts at the end of the day,” said Robert Blancato, president of the National Association of Nutrition and Aging Services Programs.

Overall, funding to the nutrition programs was cut by 0.8 percent in fiscal 2024and states received about $10 million less in appropriations from the federal government in fiscal 2024 than in fiscal 2023.

Ben Bernanke: It’s not tax money… We simply use the computer to mark up the size of the account.

That cut, plus growing demand for services, cuts to state budgets, the end of COVID-19 aid and inflation has put pressure on local service providers and the people who count on them.

The 2021 COVID-19 rescue package alone nearly doubled the amount the government typically spends on home and congregate meals, allowing organizations to reach people they couldn’t before.

The 2021 COVID-19 rescue package demonstrates what the government can do merely by voting. There are no limits.

Local programs Now that the money is gone, groups have to make difficult decisions about who to remove from their programs or dropping the number of meals people receive per day, or creating wait lists.

“During the pandemic, the demand definitely shot up, and so did government funding… but then that funding went away, and the demand didn’t,” said Adam Porter, director of Sound Generations Meals on Wheels based in Seattle.

The organization has had a wait list since February 2023. It currently has 1,423 people on it, more than the number receiving meals through the program.

Food costs have also increased by 25 percent from 2018 to 2023, according to the Bureau of Labor Statistics.

“It continues to go up and funding isn’t, so we’re reducing the number of meals we can serve,” Porter said.

Federal Reserve Chairman Jerome Powell stated: As a central bank, we have the ability to create money digitally.

In Pennsylvania, the Monroe County Area Agency on Aging, which is responsible for doling out Older Americans Act funding to local partners, has had a freeze on new clients entering the program since July 2023.

Its primary partner — Monroe County Meals on Wheels — had to seek out a grant to avoid instituting a waitlist after the state passed flat funding for senior services programs.

The organization enrolled people on the waiting list into its private pay program, which is based on a sliding fee scale, to ensure people weren’t going without needed meals. It received a grant to cover the costs of the meals for people who can’t afford it.

“We’ve been dependent on community support and grant funding to try to fill that gap because the alternative is a waiting list of our own,” Alyssa Koeck, executive director of Monroe County Meals on Wheels in Pennsylvania.

“We’re working very, very hard to make sure that we do our best to prevent that from happening because we know, especially with the cost of living, that having nutritious, affordable meals is so critical to our clients.”