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Response to Sympthsical (Original post)

Mon Aug 16, 2021, 08:45 AM

7. Beside the obvious health and humanitarian benefits, food stamps are an effective economic stimulus.

But SNAP also serves as an automatic stabilizer for the economy. For example, during an economic downturn, when unemployment increases and wages fall, more individuals become eligible for SNAP and enroll in the program. As SNAP participants spend this increased Federal assistance, income is generated for those involved in producing, transporting, and marketing the food and other goods purchased by SNAP recipients. The impact of this increased spending by SNAP households “multiplies” throughout the economy as the businesses supplying the food and other goods—and their employees—have additional funds to make purchases of their own. This multiplier effect on the economy may extend well beyond the initial money provided to SNAP participants.

Although the multiplier theory is well known, the size of the multiplier from increased SNAP benefits is less clear. A recent ERS study examined the multiplier impact of a hypothetical $1 billion increase in SNAP benefits and found that this expansion of benefits during a slowing economy would increase Gross Domestic Product (GDP) by $1.54 billion and support 13,560 jobs, including nearly 500 agricultural jobs (farming, forestry, fishing, and hunting). The expanded benefits would also boost income in the agriculture industries by $32 million.

https://www.ers.usda.gov/amber-waves/2019/july/quantifying-the-impact-of-snap-benefits-on-the-us-economy-and-jobs/

By some estimates, it's the most effective government program to stimulating the economy. Far more effective than corporate tax breaks.

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Sympthsical Aug 2021 OP
Johnny2X2X Aug 2021 #1
NurseJackie Aug 2021 #2
Sympthsical Aug 2021 #5
Haggard Celine Aug 2021 #6
New Breed Leader Aug 2021 #3
bullwinkle428 Aug 2021 #4
LineNew Reply Beside the obvious health and humanitarian benefits, food stamps are an effective economic stimulus.
Beastly Boy Aug 2021 #7
Claire Oh Nette Aug 2021 #8
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