General Discussion
In reply to the discussion: Dear American Tax Payer: I am grateful for the meals you provide. Thank you. [View all]handmade34
(23,966 posts)"...We know that every dollar spent in food stamps actually generates $1.50 spent in the community. In other words, as families use their food stamps they spent more in the community and help the economy..."
"...What are automatic stabilizers? Automatic stabilizers are taxes and transfers such as unemployment compensation and food stamps that automatically change with changes in economic conditions in a way that dampens economic cycles. For example, when the economy turns downward, the amount spent on food stamps automatically goes up as more people apply or eligibility rules are eased. The extra spending the food stamps generates helps to soften the downturn for the individuals receiving the help, and also benefits the businesses and employees where the money is spent (and the multiplier process spreads the benefits more widely). Similarly, unemployment compensation, which obviously rises as jobs are eliminated, goes up when conditions deteriorate and this also provides a boost to demand..."
also...
http://www.cbsnews.com/8301-505123_162-39740408/the-importance-of-automatic-stabilizers-to-the-economy/
http://business380.com/2012/03/11/spending-and-the-local-economy/