Monday, November 03, 2008

Food Stamps Offer an Effective Economic Boost, Say Economists

As Congress deliberates the future of a second economic stimulus package, economists have affirmed that food stamp increases offer a far greater sustained payoff for the economy as a whole than individual tax rebates. Recent data from Moody’s Economy shows that each dollar spent on food stamps boosts gross domestic product by $1.73, while the return on tax rebates is only $1.26 on the dollar. Other methods for improving the economic security of low- and middle-income Americans, including extending unemployment insurance, result in similarly high rates of return, while corporate tax cuts result in a net loss of 70 cents on the dollar.

The precipitous drop in retail sales in September made it clear that the first economic stimulus package earlier this year – which focused on individual tax rebates – was unable to effectively bolster the economy. As the economy continues to decline, lawmakers are looking for new means to increase low-income Americans’ spending power and – especially considering economists’ support – increasing the food stamps allotment has emerged as an important component of a possible second economic stimulus.

“Economists are quite in agreement that food stamps, unemployment insurance, and adjusting the paychecks of the bottom half of American workers would have a far greater effect,” said Oregon Representative Earl Blumenauer in a recent interview with Dow Jones.

Call your Senator today to encourage them to support increasing food stamps benefits as a part of the second economic stimulus package.

How do I contact my Congressional representatives?

- Use 1-800-473-6711* to call your Members of Congress.

- Call the Capitol Hill switchboard at: 202-224-3121 or 202-225-3121.

- Library of Congress website: http://thomas.loc.gov

3 comments:

cw3108 said...

this would rlly help me in my debate class but i was wondering who the author was...

cw3108 said...

whos the author?

NYCCAH said...

Hi there. Thanks for your response. To what are your referring?