Food stamps offer best stimulus

[Pryderi]

Source: CNN

Moody's study suggests extending unemployment benefits, increasing food stamps fastest ways to stimulate economy.
January 29 2008: 1:57 PM EST
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.



Read more: http://money.cnn.com/2008/01/29/news/economy/stimulus_analysis/index.htm

---

My only hope is that people believe Moody, as they're one of the ones responsible for our currnet economic mess.

[zazen]

1. good, since I'll be applying for them in a few months n/t

[Lorien]

5. I wish that they would extend those benefits to those of us who are

self employed. I've been self employed as a freelance artist for 16 years. During the Clinton era I had a six figure income and employed an assistant, maids and lawn care professionals. The Bush II era slashed my salary by 75% -mostly due to outsourcing and the slowing economy- and I was forced to give up my assistant and everyone else (sorry neighbors, not much I can do about the dead lawn). Now that I've been completely unemployed for months I don't know what to do. I'm not eligible for unemployment because I was the employer...so what happens to all of us?

[madrchsod]

8. there are three or four post offices near here that have murals from the 30`s

roosevelt employed everyone who wanted to work

[zazen]

34. should we call our congressmen? I'm in same boat, and we're not acctd for in Stimulus at all

I really relate. I'm also on COBRA as a recently divorced mother of two. Wish I could get 65% paid on that too.

I thought about writing a friend in my congressmen's office, but I feel like it's pointless.

But subsidizing COBRA for recently divorced former homemakers, and/or providing some sort of relief to Schedule C sole proprietors who can't get work (many of whom handled the dot.bomb by going out on their own), ought to be part of the package too.

And, I was just going over this whole DU site. I don't see a support group for the unemployed (contractor or otherwise). There hasn't been any activity on the careers support group for a month at least, nor is this really discussed under labor.

Thoughts?

[zazen]

35. please note my letter to Sen Hagan re this--might be something you could do with your Sen too

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x55296

[liberal N proud]

2. The only reason the tax rebates and tax incentives for business are

in the Obama plan is to try and pacify the republican cry babies.

Cutting taxes is not going to do anything. The last 8 years of the bu$h tax cuts should prove that!

[jwirr]

3. Cutting taxes for small businesses might help them stay in business

for a little longer.

[liberal N proud]

4. Give them cash incentives instead

Cash to spend on upgrading the business or buying additional inventory.

Will tax cuts be immediate? Cash is!

[Lorien]

6. Or even cash incentives for hiring additional US employees

I don't know how that would be done, but it's about time that we penalized those who outsource and rewarded those how keep jobs here.

[OhioChick]

12. Agreed. n/t

[jwirr]

33. In the 70-80s we had a program called CETA which paid businesses

to hire individuals with the idea that they would possibly keep them on after the benefit stopped in say 5 months. What happened was that they would hire you for 5 months and then find a reason to fire you so they could hire the next guy with a subsidy. What the worker got out of this was a 5 month job and a ruined reputation when he/she was fired. There were very few jobs really created that way. If they can find a way to avoid the mess of the past it would be a good idea - if not then it is not workable.

[JDPriestly]

32. That's true, but most people who get tax cuts invest it in get rich schemes.

not in jobs that pay wages to ordinary people who spend money.

That's how we got the bubbles that have caused this catastrophe. Lots of investors with too much money and no place to put it -- other than derivatives, gambling on sub-prime mortgages, gambling on commodities (ups and downs) and oh, of course, off-shoring jobs.

The best way to get the economy moving is to stop out-sourcing and cut imports, get Americans back to work and, until Americans can get back to work, keep the farm economy going by providing food stamps and paying unemployment.

You can just eat on food stamps and unemployment. Most people don't get enough even with that combination to actually buy more than just food -- and maybe pay rent.

Tax cuts are great provided they are carefully targeted to reward employers who hire people. Cuts in the taxes that employers pay per employee would be great.

Also, we need universal health care to replace the numerous ways that we cover health care in this country. Perhaps the most important relief that, if given to employers, could increase their ability to provide jobs would be to remove the need to pay the medicals on Worker's Compensation claims to employees. Even if not one of an employer's employees is ever injured, the insurance premiums are very high. Worker's Compensation is supposed to be no-fault insurance anyway, so removing that burden from employers would help a lot. And the way to do that is to have single-payer, universal health care.

[DiehardLiberal]

7. Yes, I'm also a small business owner in fear of going under

I had employed 4 people, plus help at home and now I'm down to 1 employee and hanging by a thread. I need INCOME, not tax breaks! If I lose my business, I have no chance of bouncing back as I'm a 60 year old widow (although I don't seem that old). I'm willing to work hard to keep my business and home, but even that isn't getting results right now. The stimulus needs to get people spending and keep people from losing their homes and livelihoods.

OK now back to work...

[KamaAina]

9. Minor quibble: They're no longer called "food stamps"

It's now "SNAP", the Supplemental Nutrition Assistance Program.

Hey, they could've called it "FIT", for Food Insecurity Transfer! :eyes:

[carlyhippy]

10. Here it's called EBT

Carly

[KamaAina]

13. EBT, Electronic Benefits Transfer, is a means to deliver benefits

it can be used for SNAP (food stamps), TANF (The Program Formerly Known As Welfare), or other types of benefits. The idea was supposed to be to keep those pesky recipients from trading cash (or actual food stamps) for booze or drugs, which of course they're all hooked on, or they wouldn't be on benefits in the first place. :sarcasm:

Major drawback: Not all stores, particularly small neighborhood markets in the kinds of neighborhoods with the most recipients, are equipped to take EBT, which works like a debit card. Recipients are thus forced to take the bus miles away to shop.

[acmavm]

15. And what is the 'cutesy' term they have for the hungry? Food challenged?

I think that's it. I mean, clean up the language and you can diminish the severity of the condition. Hungry is hungry.

[KamaAina]

16. You mean "people who are experiencing food insecurity?"

Seriesly.

Maybe we need a Department of Food Security. :eyes:

[acmavm]

17. Yep. The soften or obsfucate the terms and they can pretend that it just

ain't that bad. I mean, if my kid told me he was food challenged I'd tell him that he just has to be smarter than his breakfast (or lunch or dinner).

[Gormy Cuss]

36. I know it sounds like obfuscation to some, but the term "food insecurity" is good because

because USDA and others find it difficult to quantify hunger except for the most destitute people. Using a food security measure means that more people are identified as having difficulty maintaining a steady supply of healthful food and there's a chance in a non-Bush world that funding will be made available to help all who have food security issues rather than pretending that only the most destitute people need any help.

How Are Food Security and Insecurity Measured?

The food security status of each household lies somewhere along a continuum extending from high food security to very low food security. This continuum is divided into four ranges, characterized as follows:

1.High food security—Households had no problems, or anxiety about, consistently accessing adequate food.

2. Marginal food security—Households had problems at times, or anxiety about, accessing adequate food, but the quality, variety, and quantity of their food intake were not substantially reduced.

3. Low food security—Households reduced the quality, variety, and desirability of their diets, but the quantity of food intake and normal eating patterns were not substantially disrupted.

4. Very low food security—At times during the year, eating patterns of one or more household members were disrupted and food intake reduced because the household lacked money and other resources for food.

[Evoman]

11. Duh! How is this not fucking common sense?

Poor people spend cash, rich people send it to offshore banks. Give poor people money, your economy grows. Give rich people money, offshore banks grow.

The fact that their even THINKING of giving more tax breaks makes me wanna put some corrupt heads on spikes.

[Zynx]

14. Unemployment benefits are critical. I think if you increased the size of the benefits

temporarily that would also be good. It prevents consumer spending from just falling off a cliff. You'd get huge bang for your buck.

[DesertFlower]

18. here in arizona the maximum

unemployment benefit is $240 a week. my sister who lives in vermont is getting $380.

[closeupready]

21. oops, sorry, $628 in MA - not sure where I saw $1,000

$560 in NJ. But only $405 in NY. Go figure

[DesertFlower]

23. doesn't make sense, does it? nt

[Zynx]

24. Arizona has dreadful social services.

I was pretty astonished that Arizona, a state with more people than Wisconsin, has a considerably smaller state budget. I see why now.

[DesertFlower]

25. the cost of living has gone up

a lot here too. i looked at a 1 bedroom apartment for my mom. the rent was $758 plus electric.

[kestrel91316]

19. I wish we could make it so food stamps could only be used on US-origin

foods, though........

Or at least that they couldn't be used on anything from China......

[happyslug]

30. Use to be the rule, could NOT, in the early 1970s you could NOT buy Argentina beef with food Stamps

In the early 1970s a person on Food Stamps could NOT buy foreign raised (mostly Argentinean) beef with food Stamps. Could buy more expensive US Beef, but NOT foreign raised beef. I can not remember when the rule changed, but it was a firm rule in the early 1970s.

[varelse]

20. That's good news

I wonder if our Congresscritters will act on it.

[happygoluckytoyou]

22. DAMN STRAIGHT ! ! ! Welcome to Class Warfare and NEW Trickle UP Economics 101

[Capt. America]

26. "Welfare moms" could save the republic...hmm...somewhere a Rethug's head explodes.

[Zhade]

27. Doesn't help me -- food insecure some weeks, yet I "make too much".

Of course, I still want them increased for those who can get them!

[damntexdem]

28. A general issue highlighted by 'tax cuts aren't good stimulus' rhetoric.

It depends on who gets the tax cuts. When poor, or even middle-income, people get tax cuts, they tend to spend them, so stimulate the economy. If that were not true, then creating more jobs wouldn't work either. On the other hand, tax cuts to the rich tend to be spent on anti-stimulus activities, such as buying up existing businesses, outsourcing, and other pathological activities.

[THUNDER HANDS]

29. i've said for a while now the best way to give money out

is to give every american worker a $1,000 gift card (like a Visa or AMEX card) to shop whereever they want. That would cost, what? $200,000,000,000, which is a quarter of the stimulus. You can use the other $600 billion for infrastructure and food stamps and unemployment.

[Zhade]

31. You and your logic!

: )