Food Stamps Will Stimulate the Economy More than Tax Cuts,

[OldNewby 27]

Rest easy everyone. Government is here to save the day. Now, go back to sleep.

Food Stamps Will Stimulate the Economy More than Tax Cuts, Pelosi Says

Wednesday, January 28, 2009

By Ryan Byrnes

(CNSNews.com) – Food stamps and unemployment insurance will provide more economic stimulus than tax cuts, House Speaker Nancy Pelosi said Tuesday during a telephone press conference.

“(F)ood stamps and unemployment insurance, which affect the people in the states, are necessary at this time when funds are short and the economy is down, (and) actually have the most stimulative effect on the economy,” Pelosi said. “Food stamps first, unemployment insurance next, infrastructure after that, and it goes on from there.”

During the press conference, Pelosi laid out the contents of the American Recovery and Reinvestment Act, which is expected to be passed in the House Wednesday. employment insurance “have the most stimulative effect on the economy,” and as a result are given the greatest priority in the stimulus package.

“Actually, those investments bring a bigger return than the tax cuts,” she said, adding: “but tax cuts where we have them – to the middle class – we think will give us our biggest return.”

The 20-minute news conference also included Govs. Edward Rendell (D-Pa.) and Jim Douglas (R-Vt.).

The American Recovery and Reinvestment Act will devote $20 billion to “provide nutrition assistance to modest-income families and to lift restrictions that limit the amount of time individuals can receive food stamps,” according to a summary of the plan released last week by the House Appropriations Committee.

“It’s about jobs, tax cuts and accountability,” Pelosi said of the legislation.

Economists said Pelosi’s remark regarding food stamps is accurate if it is assessed in the right context.

“I think the statement is correct, as far as it goes,” said Alan Viard, resident scholar at the American Enterprise Institute for Public Policy Research.

“It’s important to realize that it is a statement about how food stamps vary over the business cycle instead of what the overall level should be,” Viard said. “It’s also important to realize you are never going to get a large amount of stimulus from food stamps, just because it’s not a very large program.”

Traditionally, governments raise interest rates and cut spending to stop inflation -- cutting down on “demand” – but they cut interest rates and raise spending to reduce unemployment – or “boost demand.”

“The only purpose to boosting demand is to stabilize the economy,” he said. “When you boost demand, what you get is an upfront economic gain. But later you will have a payback once output goes down.” Viard said this is why a stimulus needs to be timed as well as possible.

“You can’t really boost food stamps all that much,” he said. “There are only so many dollars you can put into that.”

A vote in the House on the president’s economic stimulus bill is expected Wednesday.

link: http://www.cnsnews.com/public/content/arti...px?RsrcID=42620

[autigeremt 7,543]

This woman is an absolute IDIOT! "IF" the Dems were smart, they would replace her. But, she is a part of the Trifecta.

[OldNewby 27]

[TigerHeat 9]

Rest easy everyone. Government is here to save the day. Now, go back to sleep.

Food Stamps Will Stimulate the Economy More than Tax Cuts, Pelosi Says

Wednesday, January 28, 2009

By Ryan Byrnes

(CNSNews.com) – Food stamps and unemployment insurance will provide more economic stimulus than tax cuts, House Speaker Nancy Pelosi said Tuesday during a telephone press conference.

“(F)ood stamps and unemployment insurance, which affect the people in the states, are necessary at this time when funds are short and the economy is down, (and) actually have the most stimulative effect on the economy,” Pelosi said. “Food stamps first, unemployment insurance next, infrastructure after that, and it goes on from there.”

During the press conference, Pelosi laid out the contents of the American Recovery and Reinvestment Act, which is expected to be passed in the House Wednesday. employment insurance “have the most stimulative effect on the economy,” and as a result are given the greatest priority in the stimulus package.

“Actually, those investments bring a bigger return than the tax cuts,” she said, adding: “but tax cuts where we have them – to the middle class – we think will give us our biggest return.”

The 20-minute news conference also included Govs. Edward Rendell (D-Pa.) and Jim Douglas (R-Vt.).

The American Recovery and Reinvestment Act will devote $20 billion to “provide nutrition assistance to modest-income families and to lift restrictions that limit the amount of time individuals can receive food stamps,” according to a summary of the plan released last week by the House Appropriations Committee.

“It’s about jobs, tax cuts and accountability,” Pelosi said of the legislation.

Economists said Pelosi’s remark regarding food stamps is accurate if it is assessed in the right context.

“I think the statement is correct, as far as it goes,” said Alan Viard, resident scholar at the American Enterprise Institute for Public Policy Research.

“It’s important to realize that it is a statement about how food stamps vary over the business cycle instead of what the overall level should be,” Viard said. “It’s also important to realize you are never going to get a large amount of stimulus from food stamps, just because it’s not a very large program.”

Traditionally, governments raise interest rates and cut spending to stop inflation -- cutting down on “demand” – but they cut interest rates and raise spending to reduce unemployment – or “boost demand.”

“The only purpose to boosting demand is to stabilize the economy,” he said. “When you boost demand, what you get is an upfront economic gain. But later you will have a payback once output goes down.” Viard said this is why a stimulus needs to be timed as well as possible.

“You can’t really boost food stamps all that much,” he said. “There are only so many dollars you can put into that.”

A vote in the House on the president’s economic stimulus bill is expected Wednesday.

link: http://www.cnsnews.com/public/content/arti...px?RsrcID=42620

I just hope there's money in the stimulus package to pay for an extra season of American Idol and Dancing with the Stars.

[au2004ece 30]

I thought Obama said poor people were already too fat and that was costing us money. Now, she wants to make them fatter?

Pelosi and Obama need to get on the same page.

[OldNewby 27]

I thought Obama said poor people were already too fat and that was costing us money. Now, she wants to make them fatter?

Pelosi and Obama need to get on the same page.

No ménage à trois allowed, please.

[Tigermike 4,246]

"Food stamps and unemployment insurance will provide more economic stimulus than tax cuts, House Speaker Nancy Pelosi said Tuesday during a telephone press conference."

Hey Nancy, I hate to point out the obvious but if these people were working there would be no need for food stamps and unemployment insurance.

Try doing something that creates jobs in the private sector rather than further bloating the federal government.

While you are at it you f_ _ _ ing hypocrite, why don't you let the employees at your families businesses form unions?

[Tigermike 4,246]

If you need just one reason to oppose the so-called "stimulus package" being offered by Democrats, the fact that economic geniuses such as Nancy Pelosi are writing it should be enough.

The best way to battle unemployment is to provide jobs, not subsidize it. And the engine of job creation? Well naturally that engine would benefit immensely from tax cuts and certainly have an incentive, then, to create jobs. But the dims want to increase government. Increase government and spend, spend and increase government.

But Pelosi would much rather spend first. And specifically spend on government programs which subsidize unemployment and poverty.

Food stamps and unemployment insurance - the Democratic version of "trickle down" economics.