oh bull!! Most people who can collect stamps DO. We are getting to the point tho- that the program simply raises prices on food.
Consider that $128 is the average amount - now if the groceries cost $400 rather then $300- the stamps sort of cover inflation.
that is exactly what happens, Penn. People are only buying stuff, that they can afford - one way or another. Companies are always selling their stuff for as high a price, that they can sell it for. This is how price is (normally) discovered.
Enters government. Every time when government provides "special initiatives" for ANYTHING, long term, it just pushes the price of the "incentivised" item up, by the amount of government "help". Why? Assuming this is something, that people want to buy anyway, for maximum of $X of their hard earned dollars, and the government is providing "incentive" of $Y dollars - people will be willing to accept the final price of the item in question, equal to $X+$Y dollars - that they will not be able/willing to accept otherwise.
Guess who will know this even before government finishes implementing the "incentives" program - the companies, supplying that particular market... And remember, they are there not for charity, they are there to make loads and loads of profits. The more the better. Thus they will push the price up, because customers are now willing to pay $X+$Y, instead of just $X.
And the new price discovery takes place, over time.
It is as simple as that. "Affordable housing" govt. program in Ireland, is the most drastic example here.
Economics really IS simple, if you have two functioning brain cells and discipline, to follow through on your line of thought. No high-end math required, most of the time.