It does in fact stimulate the economy, but food stamps isn't some kind of genie that will singlehandedly save the economy.
No, It does not stimulate the economy by any stretch of the imagination. If it did, then why doesn't EVERYONE get on food stamps??? If it stimulates the economy, the president should send $1,000 in food stamps to every American in order to stimulate the economy. The fact is that we are seeing record numbers of people on food stamps and we are seeing no direct or indirect benefit to the economy as a result. We have 47 million people on food stamps. That's like 15% of our population and there is absolutely NO economic stimulus occurring. No jobs are being created and unemployment is the same. Stimulating the economy isn't just about spending. it is about how you get the money to spend in the first place.
But that doesn't stimulate the economy and you can throw around numbers all you want. The bottom line is that for Billion being spent on food stamps, we are not better off for it. In fact, the number of food stamp recipients is growing. That is not a good sign at all. The difference here is that you can't get away with your liberal numbers games any longer. We can see the results. We now have four years of failed liberal policies. We have four years of record unemployment. We have four years of record numbers of people on gov't assistance. Reality shows us that leftists are completely wrong.
America's GDP is $15.09 Trillion or so, food stamps is $80 Billion or so. Assuming that every dollar in that budget goes towards purchasing food and there is no waste whatsoever, that's makes about a half a percent difference in GDP. A good economy grow more than that per quarter. Considering that it helps 47 Million people, $80 Billion dollars goes a long way for feeding people.
Because Food Stamps (and Unemployment benefits) are spent immediately by people with virtually no money, that provides much greater economic stimulus than tax cuts, or giving tax breaks for equipment purchases by businesses, for example.
If that were true, the numbers on the ground would reflect such a claim. The problem is that the numbers don't reflect any kind of stimulus at all, In fact, things are getting worse, not better. Tax cuts, reductions in regulations, and other such measures that create an environment for businesses to grow, thrive and allow businesses to start more new business, increate far more revenue in the long haul because it puts more people back to work. More people working means more people paying taxes and less people living off of other's taxes. It means that business owners have to pay more taxes. When you create an environment that promotes job growth, you create more tax renvenue because the tax base is larger. A larger tax bases creates more revenue meaning that there is no need to raise taxes on anyone. The tax burdern is borne by more people thus creating more revenue than having a more narrow tax base that you end up having to tax to death.
The problem with liberals, though, is that after they raise the reveneu, then what??? Liberals don't want more revenue so that we can pay down our debt. Liberals want more money so they can spend it. "Tax and spend," is the liberal mantra and it is why liberals are bad for the economy and bad for America.
Third, your 50% waste figure is completely made up.
According to this report, food stamp waste is at it's lowest in years, at about 3.5%, or $770 Million.
Except that he didn't say anything about 50% waste.
The point is that food stamp revenue comes from money that has already been earned by someone else. It is tax money that someone earned and then paid to the government. So it is money that was already there and now is being spent by someone else. That is not economic stimulus. Economic stimulus occurs when NEW money is injected into the economy. When the government simply takes money that is already in the econonomy and essentially recycles it, that is not going to produce economic growth. When people get new jobs that pay more and they are able to earn and spend more, THAT is new money that is being injected into the economy and that produced job growth and consumer confidence. Sorry but you liberals are a backwards bunch.