Food stamps offer best stimulus [View All]

[Pryderi]

Source: CNN

Moody's study suggests extending unemployment benefits, increasing food stamps fastest ways to stimulate economy.
January 29 2008: 1:57 PM EST
WASHINGTON (CNN) -- As Congress and the White House consider a $150 billion stimulus package that includes tax rebates and tax incentives for business, a report released Tuesday suggests that other methods would do a better job of infusing money into the flagging economy and doing it fast.

The industry research firm Moody's Economy.com tracked the potential impact of each stimulus dollar, looking at tax rebates, tax incentives for business, food stamps and expanding unemployment benefits.

The report found that "some provide a lot of bang for the buck to the economy. Others ... don't," said economist Mark Zandi.

In findings echoed by other economists and studies, he said 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, he said.



Read more: http://money.cnn.com/2008/01/29/news/economy/stimulus_analysis/index.htm

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My only hope is that people believe Moody, as they're one of the ones responsible for our currnet economic mess.