Donkey Punch

January 29, 2008

Some Stimulus Facts

Filed under: Food Stamps, Politics, Subsidies — t4toby @ 3:25 pm

foodstamps.jpg

Via Principal Blackman

From CNNMoney.com:

…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…

The report pointed to expanding unemployment benefits as the program that gets the next biggest bang for the buck… For every dollar spent here, the economy would see a return of $1.64

…business incentives such as tax breaks for buying new equipment – so-called accelerated depreciation – would give the least bang for the buck and potentially provide the slowest infusion of money. A dollar spent there would generate only 33 cents in the economy because…it takes longer for businesses to implement any benefit received.

What can I add to that?

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2 Comments »

  1. These stimulus tactics do the complete opposite of stimulating the economy because it completely ignores the true root of the problem – inflation and the devaulation of the dollar. The government and the Federal Reserve have been ignoring basic and sound economic principles for over 60 years, and it is policy such as this that just keeps making things worse. Where do people think this stimulus money is coming from anyways??? It is coming out of each of our pockets one way or another and even when you get it back, it will be worth less then when you gave it due to the inflation. If you want to understand more about just how bad this “stiumulus” tactic is, take a look at this easy to read educational book called “Economics in One Lesson” by Henry Hazlitt. Promise me you will read it because once you do, you will be scared for your economic future after you clearly see just how messed up our warped economic thought process (and fixes) are. Feel free to email me with any questions about the book – I have been doing a lot more research on economics and let me tell you – if things don’t change, my generation (I am 30 yrs old) is royally screwed.

    Comment by LLG — January 29, 2008 @ 3:39 pm

  2. i’m no economist but dismantling the corporate war machine and investing in social programs and education seems like the obvious way for us to go. remember the current popular addage about the country that educates its women is the most likely to thrive? Well educate and house the poor and it’s kind of the same thing.

    Comment by grindchopblend — January 29, 2008 @ 10:32 pm


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