More food stamps, unemployment aid
Thursday, January 31st, 2008
By Staff
RALEIGH - With the economy crumbling, the Bush administration and Congress are hastily assembling an economic stimulus package in hopes of fending off a recession. The House on Tuesday overwhelmingly approved a plan that centers on tax rebates, and the Senate is pulling together a slightly different plan.
Working North Carolinians desperately need timely relief to help ease the pressures of rising food costs, health insurance and gas prices, but the news from Washington is less than encouraging. The proposals fail to include both of the most economically effective stimulus measures — a short-term increase in food stamp benefits and a temporary extension of unemployment insurance.
These are the measures that would reach those who need extra cash in their pockets the most — the same folks most likely to spend that cash quickly, triggering higher demand and revitalizing the flagging economy.
Bottom line, an effective stimulus package is one that pumps money into the economy quickly. Previous recessions have proven that the biggest bang for the buck comes from temporarily increasing food stamp benefits and extending unemployment insurance.
The reason for this is straightforward: Both benefits result in quick spending that ripples into the rest of the economy. The two measures together stimulate about twice as much economic activity as they would cost. (more…)
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