- The Winners Of The 2015 Boston Marathon Are…Posted 13 hours ago
- 2015 ACM Awards: Miranda Lambert, Luke Bryan Win BigPosted 21 hours ago
- AFMW: Carly Fiorina, Former CEO of Hewlett PackardPosted 22 hours ago
- AFMW: David Ensor, Head of the Voice of AmericaPosted 7 days ago
- VIRAL VIDEOS: Watch Ryan Gosling Dancing As A Kid!Posted 1 month ago
- Jeb Bush To “Actively Explore The Possibility Of Running For President”Posted 4 months ago
- Insurance Industry Giving Affordable Care Act Customers More Time To Pay PremiumsPosted 4 months ago
- Boehner Responds To President Obama’s Immigration Plan [VIDEO]Posted 5 months ago
- AFMW: Comedian Sebastian ManiscalcoPosted 5 months ago
- FOX in the Fast Lane: Kicking Off The ChasePosted 7 months ago
Newt Gingrich Believes Food Stamps Stimlulating The Economy Is “Liberal Math”
Newt Gingrich has been busy trying to brand the Democratic Party as “the party of food stamps.” He disagrees with House Speaker Nancy Pelosi, who points out that for every dollar in food stamps. $1.79 is put back into the economy. (via Think Progress)
At a press conference in her home town of San Francisco, Pelosi explained that the program’s multiplier effect –the amount of money generated in the local economy as the result of the subsidy– far exceeds the nearly $60 billion spent this year by the federal government and is a sure-fire way to stimulate the economy. For every dollar a person receives in food stamps, Pelosi said that $1.79 is put back into the economy. The U.S. Department of Agriculture cites an even higher figure of $1.84.
The Wall Street Journal explains how this works.
Money from the program — officially known as the Supplemental Nutrition Assistance Program — percolates quickly through the economy. The U.S. Department of Agriculture calculates that for every $5 of food-stamp spending, there is $9.20 of total economic activity, as grocers and farmers pay their employees and suppliers, who in turn shop and pay their bills.
While other stimulus money has been slow to circulate, the food-stamp boost is almost immediate, with 80% of the benefits being redeemed within two weeks of receipt and 97% within a month, the USDA says.
Newt Gingrich, however, refers to this as “liberal math.”
GINGRICH: Well, you know, I carry around a bumper sticker that says 2 plus 2 equals 4. So I’d be very curious how a dollar given to somebody becomes a $1.79. And I think if we could get that to work with the U.S. Treasuries, so if people gave the Treasury $1,000, it became $1,790, we could pay off the federal debt and never worry about spending or anything. I mean, I — you know, somehow, I don’t understand how liberal math turns $1 into $1.79.