Moody's: Food stamps best for stimulus recovery

[Punk Freud]

Food stamps offer best stimulus

Moody's study suggests extending unemployment benefits,
increasing food stamps fastest ways to stimulate economy.

WASHINGTON (CNN) --
As Congress and the White House consider a $150 billion stimulus package
that includes tax rebates and tax incentives for business, a report released
Tuesday suggests that other methods would do a better job of infusing
money into the flagging economy and doing it fast.

The industry research firm Moody's Economy.com tracked the potential
impact of each stimulus dollar, looking at tax rebates, tax incentives for
business, food stamps and expanding unemployment benefits.

The report found that "some provide a lot of bang for the buck to the
economy. Others ... don't," said economist Mark Zandi.

In findings echoed by other economists and studies, he said the study
shows the fastest way to infuse money into the economy is through
expanding the food-stamp program. For every dollar spent on that
program $1.73 is generated throughout the economy, he said.

"If someone who is literally living paycheck to paycheck gets an extra
dollar, it's very likely that they will spend that dollar immediately on
whatever they need - groceries, to pay the telephone bill, to pay the
electric bill," he said.

Tracking that single dollar spent through the economic chain shows what
economists call the ripple effect, Zandi said. For example, that dollar
spent at the grocery store in turn helps to pay the salaries of the
grocery clerks, pays the truckers who haul the food and produce
cross-country, and finally goes to the farmer who grows the crops.

The report pointed to expanding unemployment benefits as the
program that gets the next biggest bang for the buck. That's because,
although the unemployed are already getting checks, they need to spend
the money.

For every dollar spent here, the economy would see a return of $1.64,
Zandi said.

http://money.cnn.com/2008/01/29/news...ysis/index.htm

[Rustyjigz]

Well thanks for that, if I wasn't sick enough before, you have succeeded in making me even sicker and hoping Obama jumps off the nearest bridge...

[Slacker]

Sounds OK to me; I'm happy to have some of my tax $$'s go to help put food on someones table.

I also think that anybody pulling an unemployment check should be doing 8 hours a week of documented community service. Would like to see that proviso make its' way into this stimulus bill.

[Mick2360]

Originally Posted by Slacker

Sounds OK to me; I'm happy to have some of my tax $$'s go to help put food on someones table.

I also think that anybody pulling an unemployment check should be doing 8 hours a week of documented community service. Would like to see that proviso make its' way into this stimulus bill.

Well said.

[Punk Freud]

Originally Posted by Slacker

Sounds OK to me; I'm happy to have some of my tax $$'s go to help put food on someones table.

I also think that anybody pulling an unemployment check should be doing 8 hours a week of documented community service. Would like to see that proviso make its' way into this stimulus bill.

I'm all for community service as a condition of government assistance...
FOR ALL RECIPIENTS.

So what should the CEOs and Wall Street beggars do...?
Besides complain that they can't live on 500 grand a year

But really.
There is NO proof that tax cuts brings any discernible stimulus to the economy.
It's a right-wing millionaire talking point.

But here IS proof that when working poor people have money
THEY SPEND IT, thus growing the economy... 1$ in, yields $1.73 in economic activity.

SOOOO anyone going to argue about the facts
or just throw crap around and pretend it's meaningful?

[Rustyjigz]

Originally Posted by Punk Freud

I'm all for community service as a condition of government assistance...
FOR ALL RECIPIENTS.

So what should the CEOs and Wall Street beggars do...?
Besides complain that they can't live on 500 grand a year

But really.
There is NO proof that tax cuts brings any discernible stimulus to the economy.
It's a right-wing millionaire talking point.

But here IS proof that when working poor people have money
THEY SPEND IT, thus growing the economy... 1$ in, yields $1.73 in economic activity.

SOOOO anyone going to argue about the facts
or just throw crap around and pretend it's meaningful?

Nope I am all for it. Now who is going to show this to Congress?

[Slacker]

Originally Posted by Punk Freud

I'm all for community service as a condition of government assistance...
FOR ALL RECIPIENTS.

So what should the CEOs and Wall Street beggars do...?
Besides complain that they can't live on 500 grand a year

On this topic we agree.

I think the CEO's and Wall Street beggars should also be doing some community service. Weekly work at a soup kitchen or homeless shelter would do them some good.

[Little]

Originally Posted by Slacker

Sounds OK to me; I'm happy to have some of my tax $$'s go to help put food on someones table.

I also think that anybody pulling an unemployment check should be doing 8 hours a week of documented community service. Would like to see that proviso make its' way into this stimulus bill.

I agree.
If you're on food stamps, maybe you can come by and shovel my driveway and wash my clothes. I'm down with that

[DMacLeod]

Originally Posted by Slacker

Sounds OK to me; I'm happy to have some of my tax $$'s go to help put food on someones table.

I also think that anybody pulling an unemployment check should be doing 8 hours a week of documented community service. Would like to see that proviso make its' way into this stimulus bill.

Uh, first off unemployment insurance is paid for by the employer through each state. It is not the same as a welfare program. Next who would oversee this 8 hours of community service? Who would pay for the overseeing of same?


I don't want to hear that the unemployment division of each state would be responsible. It cost to implement and enforce would far exceed the benefit. The unemployment divisions of the states are working at close to their limits now. So lets give them some more work. (oh and stay in budget as well)

[Rustyjigz]

Originally Posted by DMacLeod

The unemployment divisions of the states are working at close to their limits now. So lets give them some more work. (oh and stay in budget as well)

Tell the companies that are paying unemployment insurance to stop laying off people...

Because if companies start to hire again then we can climb out of this mess. See the problem is people are lemmings, they will do and follow everything the government and media tell them to do.

I want to see a company have some balls and start hiring people again to bring some momentum back to our economy.

Let the media say wow things are looking up and companies are starting to hire again then you eill see people start to spend...

[JimW]

Originally Posted by Rustyjigz

Tell the companies that are paying unemployment insurance to stop laying off people...

Because if companies start to hire again then we can climb out of this mess. See the problem is people are lemmings, they will do and follow everything the government and media tell them to do.

I want to see a company have some balls and start hiring people again to bring some momentum back to our economy.

Let the media say wow things are looking up and companies are starting to hire again then you eill see people start to spend...

Good idea. Then we will have a bigger pile of failed companies.

[DMacLeod]

Originally Posted by Rustyjigz

Tell the companies that are paying unemployment insurance to stop laying off people...

Because if companies start to hire again then we can climb out of this mess. See the problem is people are lemmings, they will do and follow everything the government and media tell them to do.

I want to see a company have some balls and start hiring people again to bring some momentum back to our economy.

Let the media say wow things are looking up and companies are starting to hire again then you eill see people start to spend...

That actually used to be beneficial to employers here. Companies with few to no lay offs paid a lesser rate than a company who had higher rates of lay offs. That went out the window though and now each company pays a standardized rate based on payroll.

[Al Sears]

Originally Posted by johnwade

I agree.
If you're on food stamps, maybe you can come by and shovel my driveway and wash my clothes. I'm down with that

With all due respect John, not every one drawing food stamps can get over and give you some help, for you see many are on Active Duty in one Branch or another. The Military Commissaries take in Several millions of Dollars of Food stamps Yearly. You Didnt know that did you???

I will bet that any one of them given the chance would rush right over when they get home from an Overseas assignment to assist you , I mean hell after all you pay part of their salary right.

Pretty Picture, Young Lady with Small Child in check out line at grocery store about to cry for having to use Food stamps, and then she is scorned by those in line behind her, never knowing that her husband is deployed ,nor caring.

Hope bad tidings never stop at your door.

Personally I find it Totally deplorable that ANY Memeber of US Military is qualified & forced to use Food Stamps so their family may EAT

[Paul_M]

Food stamps makes a hell of a lot more sense than $250 million for furniture at DHS or propping up a failing business.

[lichum]

Originally Posted by Rustyjigz

Well thanks for that, if I wasn't sick enough before, you have succeeded in making me even sicker and hoping Obama jumps off the nearest bridge...

People with little or no money HAVE to spend money when they get some.
The term Economists use to describe this behavior is "High Propensity To Consume."
Cashed unemployment checks and food stamps which are quickly spent are stimulative as those initially spent monies are received and spent again.
Economists call this ripple effect the velocity of money.