Yes she's a stupid cunt but it's not her fault - the system itself is broken. If she's "entitled" to it, why wouldn't she take it? It's the same as say getting laid off from your job and collecting EI, yet you've still got $500k in the bank. I'll best most people would do it.
I am not sure exactly what the deal is with food stamps but there needs to be a way to take into account any and all income earned during that period to determine eligibility. Seems to me like they are only looking at wages earned and/or job status.
You have a couple of photos that are great... you must be very good at photoshop!