But many recipients sell their Food Stamps for a lesser amount in cash (say, $100 stamps for $80 cash), then use the cash to buy alcohol, cigarettes, or whatever else they like.
>> cash to buy alcohol, cigarettes, or whatever else<<
What else is there?
Having had experience in the underworld, way back when I was in active addiction, your estimate is way high. The going rate is 2-for-1. $100 food stamps = $50 cash (or more likely, $50 drugs).