Wes Moore: “Mr. Secretary, good morning. Many people don’t know that actually food stamps fall under the Department of Agriculture. And a report was just released that nearly 1 in 7 Americans now are currently on food stamps. What strategies — what’s being done right now and being done going forward that is really addressing poverty and the poor within the country and bringing some alleviation to those kinds of numbers?”
Secretary of Agriculture Tom Vilsack: “Well, obviously, it’s putting people to work, which is why we’re going to propose some interesting things during the course of the forum this morning. Later this morning, we’re going to have a press conference with myself and Secretary Mavis and Secretary Chu to announce something that’s never happened in this country which we think is exciting in terms of job growth. But I should point out that when you talk about the snap program or the food stamp program, you have to recognize that it’s also an economic stimulus. Every dollar of snap benefits generates $1.84 in the economy in terms of economic activity. If people are able to buy a little more in the grocery store, then someone has to stock it, shelve it, process it, package it, ship it. All of those are jobs. It’s the most direct stimulus you can get in the economy during these tough times. The reason why these numbers have gone up is we’ve done a pretty good job of working with states that have done a poor job in the past about the getting word out about this program. States like California and Texas and Florida underperformed and we’re now working with them to make sure that people who are eligible get the benefits and therefore help stimulate their local economy.” – MSNBC’s “Morning Joe,” 8/16/11.
Mr. Secretary, I most humbly observe that you do not understand the definitions of “benefit,” and “stimulus,” nor what exactly is entailed in “economic activity,” and how $1.84 is actually generated in the economy.
{ 23 comments }
If 1$ in foodstamps generated 1.84$ in the economy, wouldn´t it make economic sense to just hand out foodstamps to everyone all the time? Put all americans on foodstamps!
184% ROI on the spot sounds like too good of an investment opportunity to pass by.
Indeed, you’d think that grocery stores would have realized by now that giving away groceries for free results in a nice profit.
This sounds great. What about beer stamps? Wine Stamps? Crappy electric cars stamps? Does any one know what stamps give you the best bang for the buck?
Walt D
Beer. Definately beer.
Sione
It s stamp – stamps, see ? Thus you already create 3,68…. in the first round. Now if you give out more stamps, ergo stamps -stamp stamps, it creates even sooo much more, really – believe me…Plus it doesn t matter wether it muliplies or …uh..this other thing…like axponanshol or so….evvything becomes – Tataaa: more – and we have done a PRETTY good job…See it now – -that was easy – what next ?
I cannot wait for the IPO, Per!
Sadly they are actually willing to provide grants of up to $75,000 for outreach activities to those who work to sign up even more people for the program. So you are not very far off at all when discussing their mindset.
http://www.fns.usda.gov/snap/outreach/grants.htm
I guess the only thing to be grateful for is that this time around they’re not burning crops and killing livestock
yet
The fact that someone at the highest level of government can publicly proclaim the utter stupidity of $1.00 in welfare –> $1.84 in profit is downright depressing. Anyone who thinks that a dollar in welfare spontaneously generates $1.84 in overall economic gain is so wrong, it’s hard to know where to start.
I swear, reading this crap is like being a scientist stuck in the Middle Ages. People used to think that disease, rats and other forms of life spontaneously generated out of non-living things. In terms of economics, humanity is still stuck at the Spontaneous Generation level of intellectual development.
Most economists don’t know anything about economics, so it’s not surprising that a bureaucrat is also illiterate when it comes to the subject.
Actually you will find most economists are familiar with the basic tenets of economics, but in order to maintain stature and tenure they are willing to sign on to such things as “living wage” petitions.
While others do understand it.
http://www.economics.harvard.edu/files/faculty/40_bglobejune01.html
Love his comment about how it puts people to work. Yeah, handing out free food will do that.
What they really mean to say is that every dollar in snap benefits is $1.84 sucked out of the private sector redirected elsewhere. Because “the economy” only counts when the government is controlling it.
“Poof, money appears and now we can throw it into a program and look at all the activity!
I do not ask what happens before the poof – where the money comes from. That is someone else’s department! Any more questions before I go to a meeting to talk with others to see what else we can do with the money that appeared with a poof!” says Tom Vilsak.
Government money only stimulates the economy when it is given to bankers and stock brokers, right?
Are you being cynical and clever or just dense and ignorant (as usual)?
Only partially right Bill – Government money also stimulates the economy when it is given to boondoggle Green Energy Companies, cash for clunkers, crappy electric car subsidies, and defense contractors.
To paraphrase Shakespeare “A government handout by any other name would stink just as bad”.
Exactly, Bill. Says so right here on the handy State-approved inflation list:
Wage inflation: bad, means the economy is “overheating” so we’d better jack interest rates and crash it
Gold price inflation: pure evil and must be crushed by any means legal or otherwise
Food/energy cost inflation: bad, but fortunately does not exist
Health care cost inflation: bad and therefore requires State intervention so it can get worse
Education cost inflation: “bad” but useful for roping people into inescapable debt
CEO pay inflation: an unalloyed good for society
Bankster bonus inflation: they’re doing God’s work, after all.
+1
What kind of inflation has the several trillion created last year caused? Not wage inflation for the working class! Fuel inflation? Oil is an international commodity and the price of gas is low. Food cost inflation? Weather/climate related? Turning food into fuel inflation?
Money creation doesn’t cause price inflation unless it is spent into the economy.
Yes, if you exclude the items most viciously affected by inflation, there is none.
“Oil is an international commodity”
And? Credit has been expanded globally. Not just in the US. Which is, after all, the reserve currency on a global level.
“Food cost inflation? ”
“Weather/climate related?”
Blame it on the weatherman. Again, apologetics. This is partially a factor but to suggest monetary inflation has nothing to do with it is, sincerely, bullshit.
“Money creation doesn’t cause price inflation unless it is spent into the economy.”
True. However…
It is seeping in. Not from current rounds of credit expansion but previous ones.
GOP moves forward on bill to halt welfare payments at strip clubs, casinos
http://www.usnews.com/news/articles/2012/01/31/house-set-to-ban-welfare-payments-at-strip-clubs
We don’t want people getting over-stimulated!
Looks like I’m eating crow.
http://www.nbcnewyork.com/news/local/Welfare-Human-Resources-Administration-Food-Stamp-Rent-Assistance-New-York-City-138471289.html?dr
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