The Winkest Link

By Wink

Economists agree, and it is scientifically proven: When an economy stagnates, the two most effective ways to stimulate the economy are to provide (1) unemployment compensation (between 70% and 190% goes back into the economy) and (2) food stamps (between 173% and 184% according to article).

Talk about two unpopular programs!

I am guessing these are most popular among about 10% of our population, the 10% that are currently unemployed.

Among those who HAVE jobs, the approval percent drops pretty dramatically.

This isn’t necessarily party-related either. Many Democrats feel unemployment and food stamps are a waste of taxpayer money.

This doesn’t require any upper-level thought. The poor will spend their money to keep a roof over their heads, and to feed their kids. They SPEND the money.

Spent money creates jobs. Not ‘maybe someday’ jobs. NOW jobs. These jobs create more taxable income, so each dollar is actually worth more than one dollar invested.

The LEAST effective economic stimulant?  Tax cuts for the wealthy. These go right into estates and just sit there.

Additional money will not cause Daddy Warbucks(1) to change his spending habits.  He will just throw his tax cut on top of the pile of money he already has, not stimulating anything. (Only between 10% and 40% goes back to the economy, from first link).

Of course, if you don’t believe in science, you won’t believe in economics either. But I thought it was worth a shot….

(1) A “Little Orphan Annie” reference!

(1 votes, average: 5.00 out of 5)

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