The federal food stamp program is being beefed up in hopes that it will help jolt the sagging economy back to life. However, economists are conflicted over how big an impact this increase will ultimately have.
The government is spending $20 billion to expand the Supplemental Nutrition Assistance Program... Amid the recession, 4.8 million additional people have sought out food stamp assistance. In February 2008, 27.7 million people nationwide were receiving food stamps, compared to 32.5 million people 12 months later.
The idea of the stimulus plan is simple. The concept assumes people who get extra money will spend it — and that increased spending will bolster the economy.
"This injection of funds ends up being spent on food, and that has a multiplier effect through the economy."
The government is spending $20 billion to expand the Supplemental Nutrition Assistance Program... Amid the recession, 4.8 million additional people have sought out food stamp assistance. In February 2008, 27.7 million people nationwide were receiving food stamps, compared to 32.5 million people 12 months later.
The idea of the stimulus plan is simple. The concept assumes people who get extra money will spend it — and that increased spending will bolster the economy.
"This injection of funds ends up being spent on food, and that has a multiplier effect through the economy."
Source: NPR Online, by Kathy Lohr, JUly 7, 2009
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