Impact of Food Stamp Cuts `Significant': Purvis

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Sept. 3 (Bloomberg) -- Margarette Purvis, president and CEO of the Food Bank for New York City, discusses the potential impact of cuts to the food stamps program. She speaks with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

From bloomberg world headquarters in new york, i am mark crumpton.

This is "bottom line," the intersection of business and economics with a main street perspective.john boehner supports president obama's call for military action against syria.

Microsoft agreed to by no egos hand business.

The ceo of america's food bank discusses a proposed cuts to the vista program.

-- to the food stamp program.

To our viewers here in the united states and those of you joining us from around the world, welcome.

We have full coverage of the stocks and stories making headlines.seeking and tracks the stockmarket games.

We also follow the impact of the syrian crisis on u.s. diplomacy.

Let's begin with yang yang details efforts to get the personal approval for military action against syria.

Good evening.

President obama's call for a military strike and syria gained significant momentum.

He met with more than one dozen lawmakers at the white house this morning and pressed his case for limited strikes.

The president took a big political gamble by asking congress for the green light, but his success increased after john boehner offered his support and said that his colleagues should also.

We have enemies around the world that need to understand we will not tolerate this behavior.

We also have allies around the world and in the region who also need to know that america will be there and stand up when necessary.

Business book -- is a spokesman said that getting converse on board will be an uphill battle.

Nancy pelosi said it would be better one if the american public knew more.

The president's did not end at the white house.

Joe cagle and john kerry and general dempsey took the case of capitol hill to testify before the senate foreign relations committee.

They faced tough questions about the scope and justification of military action.

The consequences of not acting out weight the risk of a military strike.

We would be opening pandora's box as a result of the u.s. not keeping its word.

It would make our lives difficult with respect to north korea and iran.

There is no question in my mind that those countries are watching.

Many others are watching what we are doing now with great interest.

Theis continues tomorrow.

Only the foreign committee will be open tomorrow.

What is the biggest roadblock now to the president getting the go-ahead?

It comes down to the vote totals.

The president said he is comfortable -- confident you will get the votes he needs.

It is a different story in the house.

He should not help to much help from president baker.

It is up to the white house to make the vote happened.

President obama does not want to become the first to be denied military support.

Thank you.

Stay with us for more coverage.

We will hear from john alterman.

He is a former state department official who has written four books on the middle east.

That is coming up in five minutes.

Let's show you how the equity markets finished the session for tuesday, september 3, 2013. stocks rose better than forecast.

Let's look at the numbers.

The s&p 500 was up i little under seven points after the worst month since may of 2012. the dow jones was up 23 points.

The nasdaq was up by 22 points.

Let's go to the stories behind the numbers.

Syncing and is standing by with details.

-- sue keenan.

Let's start with microsoft's plan to buy tokyo's -- nokia's smartphone.

The deal came together after the board to deliberate on the sale.

Microsoft wants a bigger slice of the mobile computing market.

Through our partnership, we have accomplished so much.

Clearly, the opportunity is remarkable.

I am optimistic about what we can achieve together.

Iker soft -- microsoft and n okia services.

We are excited to chase our common dream.

Verizon's stock fell after it agreed to buy out the rest of the wireless service from vodafone.

Cbs and time warner cable and their feud over programming.

Time warner cable's customers will have access to cbs just in time for football season.

What were some of the other movers?

Jarden is buying yankee candles for $1.75 million.

It's shares rose almost 11%. it is projected to boost earnings per share by 10%. herbalife took a hit, moving down almost 2%. the company lacks transparency.

A professor says that the company is a permit scheme.

-- a year amid scheme.

Thank you.

Making the case for military action.

President obama and leaders outline their strategies for an attack on syria.

More on that story when "bottom line" on bloomberg television continues in a moment.

? welcome back.

This is "bottom line" on bloomberg tv, streaming on your tablet, your phone, and at bloomberg.com.

Let's continue our coverage of the conflict in syria.

Earlier today, i spoke to john alterman.

I began by asking him about john boehner's support of president obama's call for military action.

Also the warning that such action would violate international law.

Having john boehner is a vital to the president, but not sufficient.

It is not clear how much power that john boehner has control of the republican caucus.

A lot of republicans think the most strategic thing they can do in their jobs is not to do something with syria, it is to hold president obama down.

He has an uphill battle in the senate and the house.

The american public remains opposed to a military strike the in terms -- a military strike.

In terms -- there have been criticism from the republican party.

Where are talking about a situation about life and death.

You believe that politics is going to find its way into this debate?

We have been looking at syria for two years.

We have more than 100,000 people killed.

I don't think the issue of that changes this.

The question is -- what should our role be?

What is an appropriate use of force?

What we have seen on a congress is a reluctance to get involved in more middle eastern worst.

-- wars.

They have been hearing from people.

I don't think they have been hearing from people saying that we need to do something.

The president needs them to do something.

If he goes to congress and cannot get this, he will have a hard three years for the rest of his term, not only at home, but even more internationally.

The authorization he is seeking is not tantamount to going to war.

Does a war- weary nation affect this?

Are we just trying to demonstrate, and what is the strategy was to mark what the white house as talk to mark is the targets and how long this'll would last.

What we have not heard is how does it fit into a broader strategy for syria.

What are the strategic interests?

We have to know what the actions build up to.

The president will have to make a case for that.

The other thing he has to do is make -- demonstrate that this matters.

When john kerry said that this is important , if you look at the white house on page, you could not find anything about syria.

The president has to be serious working with congress.

When i talk to people in congress, they say that the president has been standoffish and has not been engaged.

What is it -- at stake for the economy?

What will it mean for the markets?

What will the anticipation mean for the price of oil?

We do know how it would unfold.

If it goes according to plan, it should not have much to do with the price of oil.

A strike that does not go according to plan creates a situation where people rally against the u.s. that could raise the price of oil.

They could isolate us, rather than have us in a leadership position.

The middle east has enormous value to the u.s. will a strike destabilize regional economies?

They kind of strike the president is talking about should not have a huge district of effect on any regional economy.

It will not have a disruptive effect on syria itself.

What the president talked about is something limited in scope and the interesting news that came out today is that the british went to the iranians as an opportunity to open up negotiations to use the strike as a way to bring the broader conflict in the region into more control.

That can be an unexpected positive benefit if a goes according to plan.

No u.s. president has been turned on by congress when asking to use military force.

Will congress do raw a red line of its own and reject his request was to mark -- his request?

And will the president watch his own attack anyway?

The senate has the ability to declare war.

The president has better odds . having john boehner helps, but it does not control it.

Many democrats have misgivings about this.

The president could win one house, but not both houses.

In that event, he would go.

That was john alterman.

He joined me earlier today.

Coming up, a new bill will cut $40 billion from the food stamp program.

We look at how this could affect the 47 million americans relying on it when "bottom line" on bloomberg television continues in a moment.

? before congress went on recess, both the house and senate passed farm bills that needed to be reconciled after they were confined.

A key point is footsteps.

The program has been paired with subsidies to create a rural urban alliance.

A new stand-alone bill could cut $40 billion from the program.

Let's look at what it could be for people who rely on the funding.

The president of ceo of the largest food bank in the country joins me in studio.

Welcome to online.

-- bottom line.

What is the potential financial impact?

Thank you for having us and discussing this.

It is an important issue.

Where are talking about $30 a week for a family.

It is significant when we look at who these cuts will hit, it is women and children primarily.

They do not get a lot of money to start with.

4s, $30 gone is not that much money, but it is a significant reduction.

We have made on the point on this program before.

Women in the u.s. make $.77 per dollar compared to a man.

$30 is significant.

The other part that people don't understand is that we are not talking about generic women.

We're talking about seniors.

Their children also.

It is vulnerable people who these cuts are directed at.

It will take everyone to raise our voices.

What will this mean for local economies?

A lot.

We can make it about whatever kind of who is receiving food stamps, but for every dollar that goes into the program, it returns $1.73 into the economy.

No other place we could cut would have that kind of return.

Present expenditures grew to $70 million last year.

It was more than when the recession started.

This year, they have $.40 almost $3 billion -- they have already sent $3 billion.

However we will sustain, it is not for us to make those in need to be the ones to determine that.

Farmers are one of the biggest supporters of the program.

They try to pit the farmers against the urban poor.

It does not work.

It does not make sense.

This is about moving a commodity important to all of us.

Food.

There is little to no fraud inside of this program.

This is the federal government.

One of the best run programs in the country.

Yet it is being called a kind of program that we can make it major difference in the budget, when we cannot.

Someone told us that starving children is the answer, but there should be real restrictions.

Are there areas of ways in the food stamp program that can be done away with?

People are standing in line, sometimes for hours, because they have nothing else to do.

In new york city, we are not seeing that.

Right now i'm it requires our attention to fix the program.

What about colleges and -- eligibility requirements?

Most of the people are working for.

Mostly they are looking at myths.

The average person in this program is working.

The other part is that people are not staying on there forever.

The average person stays on there for 10 months.

I am not sure why the focus is always on the people in need, versus those -- any plan that congress passes is likely to have cuts to food stamps.

Would you rather not have that quest to mark -- have that?

I can tell you that we are concerned about our ability to make up for these cuts.

We cannot do that.

Right now, 1.5 million new yorkers are often at another agency because they are bailey receiving enough to live in the city.

What does the private sector tell you?

Will they be a bridge to whatever cuts might happen?

We receive a lot of report from individuals who support us and corporate friends.

D and bank of america -- delta and bank of america.

This is hunger awareness month.

We call it "go orange." we don't allow hungry people to go invisible.

They are everywhere.

They are your neighbors.

They are in your church.

There are in class woodford told in -- with your children.

Boots fit -- food stamp enrollment numbers are going down.

How does that deck disposed -- juxtapose with the employment rate?

Finding other ways to get cash in the hands of more new yorkers.

Some people have been able to take advantage.

Numbers are going up even know the unlimited rate is going down.

Absolutely.

It is never all black or white.

This is about hunger.

At the end of the day, no one should be hungry in america.

Thank you.

Coming up, we tell you how the debate over a military strike in syria is affecting global perception about the u.s. stay with us.

You are watching "bottom line" on bloomberg tv.

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