Wednesday, January 30, 2008

More Stimulus

If the Congress is going to try and stimulate the economy which I am seriously questioning the need for BTW, then they really need to rethink how they are going to go about it. This study shows that extending unemployment benefits and food stamps are the most effective way to immediately produce additional spending and really is a good value when you are already deficit spending.

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.

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