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Food-Stamp Funding Boost Gives Economy Quick Lift

Money gets spent fast; $5 in stamps yields $9.20 in activity

By Matt Cantor,  Newser Staff

Posted Jul 7, 2009 11:07 AM CDT
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(Newser) – The boost in food-stamp funding included in President Obama’s stimulus bill is pumping cash into the economy, the Wall Street Journal reports. In April, families of four on food stamps started getting about an extra $80 a month. Every $5 spent in food-stamp money means a quick $9.20 of total economic activity, the Department of Agriculture figures.

Some 80% of food-stamp funds are redeemed within two weeks of receipt, whereas money given to banks, automakers, and government branches often trickles down slowly. And while the program has been criticized for inefficiency in the past, applying has become easier and fresh food more available. Food-stamp spending will likely increase by $10 billion to $12 billion this year, a report found.

Store owner Don Kitchens rings up items at his store, April 2, 2009 in Gibson, Ga.
Store owner Don Kitchens rings up items at his store, April 2, 2009 in Gibson, Ga.   (AP Photo)
Lynda Wheeler holds her Link card, Illinois' version of food stamps, before paying for groceries shortly at One Stop Food & Liquors in Chicago, May, 1, 2008.
Lynda Wheeler holds her Link card, Illinois' version of food stamps, before paying for groceries shortly at One Stop Food & Liquors in Chicago, May, 1, 2008.   (AP Photo)
Shoppers use the check out lines shortly after midnight at One Stop Food & Liquors in Chicago, May, 1, 2008.
Shoppers use the check out lines shortly after midnight at One Stop Food & Liquors in Chicago, May, 1, 2008.   (AP Photo)
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COMMENTS
Showing 3 of 11 comments
freethemall
Jul 8, 2009 12:03 PM CDT
I wouldn't be adverse to tweaking the food stamps program to address some of the concerns you relate, as long as it's not an excuse to gut the program.
armywife
Jul 8, 2009 2:07 AM CDT
poor people "dont know any better"? really? is that where you want to go? that poor = stupid?
armywife
Jul 8, 2009 2:05 AM CDT
i'm a pretty liberal democrat, but i totally agree with this. if we're funding someone's grocery purchases, then we should get a say in what they can spend those food stamp dollars on. the food stamp program could take a few cues from the army's WIC program.

 
welfare • economic stimulus package • food stamps • President Obama • stimulus funds

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