6/12/2014
The nation has seen an increasing trend among lawmakers, particularly those on the left, in utilizing the state to drive our consumer choices. Generally, these have come from punitive measures. In addition to added regulations on food producers, they have struck directly at the consumer, in the form of “sin taxes” on sodas and other foods high in sugar and cholesterol in an “altruistic” attempt to persuade Americans to eat healthier. While I tend to disagree with these tactics and believe that the usage of state power to drive our consumer choices is a form of tyranny, I do believe there is a role to be played by the government and political parties as related to manufacturers grocery coupons not only to help poor and working class families stretch their food budget, but to also make more efficient use of the trillions in taxpayers money that is spent on relief and assistance programs.
The American culture has become synonymous with “consumerism” for at least the last half century. In the post-World War II boom, Americans developed a purchasing power, at the time, greater than any other civilization on the earth. It was not long before manufacturers and retailers began expanding the use of coupons to drive consumer behavior and sales of their products and services. Today, market trends indicate that frequent coupon enthusiasts shop more often and account for more purchases than non-coupon users, which is to be expected. However, the families who can most benefit from coupon savings are the least likely to use them. While legislators have become increasingly interested in using the state to drive how consumer make their choices, they have paid little if no attention to ways to increase money-saving coupon usage among America’s poor and lower-income families.
It was my mother who first introduced me to coupons, but I became a confirmed “coupon nut” with the impending birth of my own daughter eight years ago. Faced with the knowledge (and fear) of having to stretch our family budget even further, I jumped on the coupon bandwagon with full steam, becoming obsessed with saving every nickel possible. Fortunately for me and my family, this was during the days of “double coupons” which reaped a bonanza which bordered on hording behavior. Coupon clipping became a Sunday ritual which I’m embarrassed to say I practiced with more consistency than Church attendance. I would brew a piping hot pot of coffee, sit myself in front of the television, scissors in hand to enjoy hours of NFL football and a gleeful pursuit of the weekly deals offered by my favorite and soon-to-be favorite brands.
I became so proficient in the practice that I set up extra shelves in my garage to store the bevy of products that overflowed our cabinets. I would stand in awe of my accomplishments, admiring the rows and rows of baby shampoo, wipes, lotions, oils and products that if used quadruple to their normal pace would still not place a dent in the inventory. I can’t tell you how many times a I took advantage of regular sales on baby products at $2, applied a $1 coupon, which doubled, and provided my daughter a free bottle of name brand baby lotion, shampoo and other pampering products to the point that we ultimately gave away many bottles to friends and family members with babies of their own as gift baskets.
This fanaticism spread to our other purchases as well, as I would anxiously await the grocery receipt, eager to scan down to the bottom to view my savings and calculate the percentage savings and marvel at my own consumer brilliance. Aside from the ego boost, it provided us with true value and enabled us to enjoy a wider selection of grocery items and translated into more disposable income for family outings, more evenings of dining out and better accommodations on vacations.
Most Americans have used a coupon of some sort at one time or another. Whether to save money at an amusement park, free popcorn at the movie theater or a free beer at a ball game, all of us have taken advantage of a spontaneous deal at some point. However when it comes to our most consistent and essential purchases, food and groceries, a distinct pattern of the typical coupon users has developed for decades that may surprise some. The fact of the matter is that middle-class families utilize money-saving grocery coupons more than any other group and in fact wealthy Americans are more likely to lay down a $0.50 coupon for mayonnaise than the poorest of Americans.
Grocery coupon usage by family income levels.
The image above demonstrates the use of grocery coupons by income bracket. As show, while families with an annual incomes between $45k and above use coupons at a disproportionate rate. Sadly, the families that would benefit most from stretching out their food budget are least likely to take advantage of savings offered by manufacturers, as for families with less than $25k in annual income make up only 14 percent of all coupon users, while making more than 28 percent of the nation. While this of course translates to these families spending more of their budget on the daily necessity of food, it also leads to less healthy eating habits and one could argue less appetizing.
This should be of particular interest to conservatives as we look at the dual challenges of moving toward a society that is less dependent on government while at the same time expanding our base to include a more competitive position in the ghettos, barrios and trailer parks of America. In developing strategies to utilize the enormous savings power of manufacturers coupons, we can work toward accomplishing both goals, albeit in a step by step process. Reality dictates that we must understand we cannot simply wave a magic wand and alleviate problems that have been half a century in the making, but we can utilize the power of government, as it was designed, to chip away at the welfare state and the debilitating effect it has had on taxpayer and recipient alike.
As we first look at practical steps to be taken within the current welfare and SNAP (Supplemental Nutritional Assistance Program) programs, technology can be utilized to both drive consumer behaviors and make better use of the hard-earned money of the taxpayer, while we embark on efforts to create a future economic climate where self-determination and responsibility becomes the national mantra. To fellow conservatives who balk at the notion of betraying principle by even entertaining the subject I will retort that the situation of SNAP and food stamps is a problem that we can either employ long-term and incremental solutions at or continue to acquiesce the conversation (and votes) to the left-wing, who is vested in growing the welfare state. We should never be confused in that the ultimate goal is elimination of the need but this is not going to happen overnight and as Christians, Jews and believers of other faiths we should also contemplate that our opponents have set the stage for this dependence and we are obligated to teach our brethren how to fish as we work to reverse the cycle the left has wrought.
Within the SNAP program there are opportunities to bring coupons into the system. Here is where the state can work in conjunction with business, not as an adversary. The technology already exists so that money-saving coupon codes can be embedded into the EBT (Electronic Benefit Cards) that most recipients of state assistance utilize. Just as with the middle-class shopper who either clips or (increasingly) uploads the coupons to a phone app or their grocery “club-cards” and realizes these savings at the check-out line upon purchase, food-stamp recipients who swipe an EBT card will have the manufacturers offers deducted from their totals.
Technology exists to both educate consumers and save the taxpayer money.
This provides two options available, depending on how this sort of program is rolled-out. The “savings” can either be transparent to the recipient and come back to state coffers, just as manufactures fund grocery retailers, or can be “bonus-ed” back to the recipient themselves with all or part of the discounted balance being maintained in their EBT account. This aspect is certainly up for debate but if we are to use such a system to drive behavior, it stands to reason that providing incentive to the shopper to purchase discounted products will be more expeditious to this goal.
Manufacturers would certainly be open to such proposals, as it helps increase market share, just as standard coupon usage does. The metrics alone open up huge consumer opportunities for them to participate, even be the drivers, of a system that will provide savings to the taxpayer, regardless of which methodology is used. Even if we came to the decision that developing better consumer habits was a fruitless venture (of which I disagree), we can immediately save taxpayer money increasing coupon usage for state-subsidized grocery purchases.
This brings us to the educational aspect of the issue. Everything about the administering of left-wing social welfare programs has had the consequence of eradicating self-determination and self-responsibility and further increasing need and numbers of the indigent. As we work on one side of the coin to create an economic climate with more opportunity, we need to also focus energy on on reversing these conditions. Whereas the state’s role in this should be limited to education and awareness and aforementioned budgetary savings techniques. conservative outreach into areas traditionally controlled by Democrats and the Progressive-left provide opportunities. Social conservatives and faith-based groups have been successfully utilizing coupon classes and giveaways in their outreach and by implementing such strategies we can go a long way into showing the residents of these communities that we in fact have not only their interest at heart but also tangible ideas to put money back into their pockets, which is ultimately the crux of modern conservatism.
I’ve always held that the importance (and pitfalls) of political leadership is not simply in policy initiative or tax tables, but its cultural influence as well. We certainly have seen the effect of Progressive-liberalism in the trend of hedonism and the breakdown of the traditional family on the entire culture. If we are going to push toward a century where personal responsibility and self-determination are re-established as American virtues, we have to take the lead in showing the citizenry the path. By taking an active role in educating families on how to get more “bang for their buck” we can open minds up to a better way and show the beauty and dignity of being in control of one’s own life. Whereas the left-wing hopes to make the indigent grateful, and therefore beholden, to the state providing them with their daily bread, conservatives can educate families to empower themselves and if anything be appreciative for this knowledge and disprove the fear mongering of the left who consistently warn them of the “nefarious” motives of the right.
We find ourselves at a crucial juncture in the history of America. The Progressive-left has made no secret of their desire to “fundamentally transform America” and have skillfully utilized the social-welfare system to do just that. In twenty years time, given the current increase in bureaucratic reach, it will be too late to stop them. By getting involved in the battle with practical solutions that positively have a change on not only families bottom lines but their attitudes and behaviors, we can stem the tide of dependence. Grocery store coupons alone will not solve the problem, but they are one way to help conservatives and the Republican Party connect with poorer Americans and help spread the gospel of self-respect, dignity and above all self-determination.
By Paul M Winters
Editor in Chief, Dignitas News Service
Editor in Chief, Dignitas News Service
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