Food Stamps are the Best Economic Stimulus (Fox and Friends)

August 18, 2011


I’ll be wearing my economist hat on Fox and Friends as I will explain why food stamps are the best economic stimulus.

I suggest skeptics take a basic course in economics (specifically, macroeconomics). Or you can study conservative economists, like my thesis adviser, Harvard Professor Martin Feldstein who led Ronald Reagan’s Chairman of Economic Advisors.

 

If you want more current economists, check out Mark Zandi, the Chief Economist for Moody’s, one of the top two credit ratings agencies in the world (along with Standard & Poors, who testified that the food-stamp multiplier in 2009 was 1.73 or about 6 times more powerful than a dollar spent extending the Bush tax cuts (multiplier = 0.29).

 

In sum, for every $100 billion spent on food stamps, the economy grows a robust $173 billion.
For every $100 billion spent on the Bush tax cuts, the economy grows a paltry $29 billion.
And for every $100 billion spent on tax cuts for the rich, the Congressional Budget Office estimates the economy could grow as little as $10 billion.

 

Click here for full Zandi article. Click here for CBO Analysis.

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  • http://www.facebook.com/people/Anthony-Connelly/1001885479 Anthony Connelly

    I have had 3 strokes and am disabled. I never asked for assistance after college or all of the years I worked as an Electro-mechanical Technician. Food Stamps are the only assistance I have received in the last year and a half. I was a productive member of society who paid a lot of taxes and now I eat only because the Food Stamp program exists.

  • nitemare2

    Mark you like to cry about “no jobs available” Or is the problem no jobs that people think is worthy of them? There are jobs out there. You ask what I would do. Well sweep floors, wash dishes, deliver pizza, dig ditches, cut grass. Any and as many as it took to feed my family and keep a roof over their head. But hey that might not be as easy
     as collecting unempolyment and foodstamps. you say the illegals are doing jobs americans don’t want to do. Well guess what that ot me is part of the problem. Do the job. Don’t care if it’s pretty or hard. It’s pays for the food. That is the way people did things before welfare and food stamps. My Dad drilled it into my head. The govt. doesn’t owe you anything. as long as you can work. But you don’t believe in that way of life. You believe that the Govt. should cover everything. You don’t want anyone to take responsibility for anything. What would you do Mark if you lost your job? Deliver pizza or apply for a benefit check? I bet you’d be the first in line at the Unemployment office. Liberals have created a bunch of lazy I’m to good for that children. Who want the Govt. to be their mommy and daddy. Grow up cut the cord.

  • nitemare2

    Mark quit trying to change what I said. I said nothing about the need or the reason for food stamps. You again want to turn things to fit your liberal rant and miss the whole point. You and the Liberal talking heads are using the food stamp program as proof the stimulus program is a success. It was enacted in 1964. Obama can’t take credit for it. And saying 46 million people now receiving food stamps is a great economic plus. Is laughable. Jay Carney said the same about unemployment checks. “They are stimulus”. What? Bigger welfare checks do not create jobs. They in the end cost more than they create. Because if they were as you spout we would just have make the welfare rolls larger and all the economic problems would be fixed. Wait that’s how it is in Greece and Italy and Europe. How’s that working out? That’s the biggest problem with you because someone wants to change something or correct something. They must be trying to kill someone. Or a group of people. Ryan’s plan, .“Gonna kill old people“. Dislike of the Obama health plan. “Wanna kill people“. Change the way SS and Medicare are funded “gonna kill old people“. Cut funds to Planned parenthood will kill people. Actually it would save lives. I suppose cutting funding to NPR will kill people? Everything except your way will kill people. That’s one of the reasons I don’t call into your show You’ve got your head so far up your politics you don’t listen you just belittle and denigrate. You yell compromise. But only on your terms. It’s like it’s only your experts who are correct. You never acknowledge any other expert as maybe having a real fact. You feel Gore is a better expert than a conservative PhD. Because they must be paid off by the “Big evil rich” You said as much the other day on your Raucous Caucus. You agreed with Anthony that any Expert who had an opposing view to man made Global warming was a hack. Regardless of any facts they may have. You live in your own Wonderland. Just admit Welfare provides liberal votes. Give a Govt. Check and buy a vote.
    I gave you facts on how unemployment benefits creates a way for people to not look for jobs. Until forced to do so. Studies from your liberal nanny countries show this. And you denied them.
    I gave you studies from PhDs and others who say that man made global warming is false. You Denied them.
    Operation Fast and Furious. The DOJ and I believe Holder break the law to what end? Holder does the same as Clinton and uses the definition of a word as his defense. And guess what PEOPLE really died!!! But hey in your world it is because we need more gun laws on those who don’t break the law.

    Jobs are also created when someone has an idea. And believes they can make a lot of money with that idea. Yes that’s right when they can believe they can become that evil rich person. Companies cannot grow when you want them to pay for EVERYTHING. You know “their fair share. Higher taxes and more regulations cause for slower job growth. That is a fact. And Yet you still don’t believe those receiving tax returns of more then they paid in as unfair. You want fair and equal. But not really fair and equal. Your definition of fair and equal.

    Buffet runs his mouth. And yet he pays probably millions of dollars to keep from paying higher taxes. Hey Mr. Buffet write a frigging check. Hey Mr. Soros and Peter Lewis same thing write your check to the Govt. Stop funding anti conservative sites. And then you can preach. About fair and equal. Hypocrites!Are those higher taxes going to reduce the debt? Or are the liberals going to find new welfare pockets to fill? Use them for deficit reduction and you would have a lot less people opposing them. But Washington if you want more to throw down your favorite money pit. F-no.

    Balanced budget. Close the loop holes. CUT spending.

    82 percent!-of Bush tax relief goes to households earning below $250,000, benefiting the middle class, and poor families who got dropped from tax rolls altogether. (Fact check) So why do you and Obama keep saying it only goes to the rich? Remember you keep saying you can’t change FACTS. But you seem to try.

    Real economic growth averaged 3.2 percent during the Reagan years versus 2.1 percent during the Clinton years.
    Interest rates, inflation, and unemployment fell faster under Reagan than they did immediately before or after his presidency.

    From 1981 through 1989 the U.S. economy produced 17 million new jobs, or roughly 2 million new jobs each year. Contrary to the Clinton administration’s claims of vast job gains in the 1990s, the United States averaged only 1.3 million new jobs per year in the Clinton years.

    Charles Schultze, an economist at the Brookings Institution who worked in the Johnson and Carter administrations. Saysthe Kennedy/Johnson tax cut helped the economy continue to grow in 1965 and 1966.
     Median family income grew by an average of $4000 under Reagan. And do you really want to go into the FACTS of the Obama and Democrat controlled Congress. And what gains they have made? You know like the money for shovel ready jobs. As Obama laughed and stated. “Well I guess they weren’t so ready“. So you can keep saying cuts don’t work But the facts show different. Even if you go in the Bush years and the liberal figures of 0 net jobs for Bush. But the facts actually say jobs were created. We didn’t come out negative. How has the policies of Obama worked out. Down to only 9.1% unemployment. Want to take that as another great thing Obama did? The only job creation he can brag about are new Federal jobs. But of course you will say how Obama inherited such a bad economy. Reagan did also.unemployment at 11% and high inflation. From Fact check “By the time he (Clinton) left office, the economy was slowing rapidly, and it slipped into recession in March 2001, just weeks after George W. Bush was sworn in”And Obama got the job he asked for. He had the Congress and a filibuster proof Senate. Did Reagan or Bush? And what did Obama do? Pushed his healthcare bill through instead of creating jobs. He has been campaigning since he was sworn in. Instead of creating jobs. He has shown a total lack of experience. And leadership. He takes no responsibility for ANYTHING that has gone wrong. And damn little has gone right.Now he makes a back door ruling to help get his Latino voters back in line. He makes LAW now instead of going through Congress. Wait that’s something else you believe in isn’t it. Go around the law. Like the use of the 14th amendment. Just dictate what the liberals want. Of course you will be like all the liberal/progressive whiners and say he was just doing the right thing. I saw a Immigration lawyer last night. Who made the statement that those that come here illegally are not breaking the law. Well, could have fooled me. I guess those who rob are not breaking the law either. Looters are not criminals. They need those big screen TV’s to survive. But let’s be fair it gives them something the rich had to work for. So that’s ok then it must be fair and equal. You bring up the rule of law quite often. Whose definition are you using? A Clinton book of definitions or the dictionary?

    Yeah mark I have a very good idea. And according to my Bible Jesus would agree GET THEM JOBS. Quit with the B/S. Remember teach them to fish and they can feed themselves and others for life.

    And thats not buying a $1.5 million dollar bus made in Canada. For 1 weeks use.

    Or telling everyone we must cut down on exhaust emmisions and having a 40 vechicle caravan of buses and SUVs. to CAMPAIGN at the tax payers expense.

  • http://twitter.com/randomrants2 RandomRants

    Amazing how you just overlook the stimulative effect to the economy. It’s almost like you would rather crash the economy then benefit it by helping the poor. No one is suggesting everyone gets put on food stamps. What people are suggesting is that you provide a safety net so that people can recover, get a job, and get back to contributing to the economy, and the people that need help. Look at J.K Rowling, probably the biggest welfare success story around. If you don’t provide a safety net then you end up as a third world country. Obamas quote was never suggesting that its better to be on food stamps than working, its saying its better to be on food stamps then starving. If you don’t want to look at it morally, just look at it fiscally, the poor bleeding us dry is a republican myth used to justify tax cuts for millionaires and billionaires. Jobs are not created when companies get tax cuts, they create jobs when there is a demand for their product, and there won’t be a demand for their product as long as there is this enormous gap in income equality. Where do we rank on the world list? 64th, friggin embarrassing.

  • http://www.radioinsidescoop.com Mark Levine

    Everyone?  Certainly not.  Food stamps only go to people with very limited income, often under $10,000 a year.  What is the alternative to pay very limited food costs ($6 a day for people with NO income and NO assets and NO help from family or Church) and basic health costs for poor people who cannot get a job today’s economy?

    The alternative is 45 million diseased, starving people in the USA.  Even if you have no compassion whatsoever for 1/7 of the American People — and if you do, you certainly cannot call yourself a Christian (or Jew or Muslim) — do you not think that 45 million starving, diseased people would be a health risk?  Would that not lead to a crime wave, riots, and violence?  

    What would you do if you were starving and there were no jobs available?  What do you think millions would do?  Look at what’s happening in Great Britain.

    Food stamps are necessary not just because they are moral and because they are very strong stimulus to the economy. The reason is, even if you are totally selfish and don’t give a damn about your fellow American, you have to recognize that having 45 million extremely unhappy starving and dying people around you harms your own safety.

    It also hurts rich incomes to deny the poor food stamps.  Who do you think buys the products that make corporate America rich?  The people that work for grocery stores and packing plants and food processing plants, all of whom are hired to provide food for all Americans.

    Although I guess if we just shot the 45 million, we could increase burial jobs. Is that your solution?  What would you do for the poor and disabled and aged and sick?  My solution is education, jobs, and a very very basic safety net.  What’s your solution?  Fatten them up and feed them to the rich?  (Jonathan Swift’s Modest Proposal.)  Seriously, what’s your solution?  Do you have one other than “let them die”?

    What would Jesus do?

  • nitemare2

    So following your economic theory we should just give everyone foodstamps and it will correct the poor economy. And if we pay for all the healthcare it will drive the cost so far down the Dr.s will statrt paying the govt. to get patients. A welfare check in every house will drive the economy so high we will be able to no longer need jobs. With Liberal energy plans will we will no longer need untility companies or oil or anything. Mark it is a real sad state of things when you and the Democratic pundents are using the 46 million now on foodstamps as a how great the stimilius has done. But as you want a complete nanny state that would seem understandable. So the unemployment numbers are also a great indicator of the greatness of the stimiulis.  If those things are what you use Obama is doing a great job. So we should hope for more unemployment and more on food stamps. Yup Mark your economist hat is to tight. Why don’t you reply any more?