You see the signs everywhere: "We accept EBT." Fast-food restaurants do. Clothing retailers do. Auto repair shops, liquor stores and even sushi joints are joining the club. "EBT" stands for the federal government's electronic benefits transfer card, which is intended to provide poor people with food stamps and cash assistance for basic necessities. The two separate programs were combined into one ATM-like card designed to reduce the "stigma" attached to Nanny State dependency, and -- voila! -- an entirely new method of mooching was born.
If the idea was to eliminate the embarrassment of life on the dole, the social justice crowd succeeded phenomenally. Last weekend, the New York Post blew the lid off scammers who brazenly swiped their EBT cards "inside Hank's Saloon in Brooklyn; the Blue Door Video porn shop in the East Village; The Anchor, a sleek SoHo lounge; the Patriot Saloon in TriBeCa; and Drinks Galore, a liquor distributor in The Bronx." Out: Cash for clunkers. In: Cash for drunkards!
My home state of Colorado has seen similar abuse. Last year, local TV station 9NEWS reported that more than $40,000 was withdrawn from ATMs in metro-area liquor stores despite prohibitions against such spending. Colorado EBT users also splurged at Denver's Elitch Gardens amusement part, Disneyland, Universal Studios in Los Angeles and on the Las Vegas strip.
In New Mexico, Jim Scarantino of Watchdog.org reported that in just a three-month period, EBT cards were used at multiple liquor stores, girly bars, smoke shops and casinos both inside and outside the state. Californians are notorious EBT fraud artists; some $70 million in EBT funds were withdrawn from outside the state's borders over the past several years, including nearly $12 million taken out in Las Vegas. Watchdog.org kept tabs on government workers in Connecticut, Indiana, Iowa and Wisconsin nabbed in EBT fraud rings and schemes.
Several state legislatures have barred EBT spending on these vices, along with tattoo parlors, lottery tickets and cigarettes. Last February, President Obama signed GOP-backed welfare reform measures into law aimed at closing the so-called "strip club loophole" and preventing welfare recipients from blowing their cash benefits on booze, porn and gambling. But that law doesn't go into effect until next year. And many politicians are just shrugging their shoulders, muttering "Whaddya gonna do?"
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