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HAND: Food stamp stimulus?
![]() Food Stamps. (Submitted Photo)
Top Headlines Those who remember the Great Depression may also harken back to public works projects used to employ those without jobs. But, U.S. Rep. James McGovern, D-Worcester, is advocating a method beyond the most common ideas in Washington. McGovern wants to increase food stamp benefits. A long-time advocate for anti-hunger programs, McGovern said during a congressional hearing Thursday that food stamps also boost the economy. One of the concerns in Washington is that tax cuts or other benefits might end up in recipients bank accounts rather being spent, thereby negating the intended spur in economic activity. But, McGovern said food stamp recipients are poor and will spend their benefits. He cited a number of sources for his contention, including the U.S. Department of Agriculture. "The money goes to people who have trouble with their food and other bills," he said at the hearing. "More importantly, these people will spend this money and these funds go directly into the economy. Based on USDA research, we know that every federal Food Stamp dollar generates nearly twice that in economic activity." He said increased spending on food stamps is efficient and there would be little delay in getting the money into the economy. "According to the Congressional Budget Office, 'The vast majority of Food Stamp benefits are spent extremely rapidly. And because Food Stamp recipients have low income and few assets, most of any additional benefits would probably be spent quickly,' " he said. McGovern said an increase in food stamps should be considered along with other ideas to avoid a recession. There are all kinds of other proposals being made to inject life into the economy. One of the most popular is a tax rebate. Politicians like this approach because voters actually get a check as evidence Washington is acting. Some economists like it, too, because getting money back in bulk has more impact than a small decrease in weekly withholding taxes. In addition to tax cuts for consumers, some want reductions for small businesses so they will be more inclined to create jobs. U.S. Sen. Edward Kennedy, D-Mass., wants to extend unemployment benefits and increase heating fuel assistance. Republicans want to make President Bush's tax cuts permanent, saying it would lend certainty to businesses planning for the future. U.S. Sen. John McCain, R-Arizona, said the answer is to eliminate budget earmarks, which sounds more like a fiscal policy than an economic one. Tax and spend? On the presidential campaign trail, Massachusetts Republicans have been pushing for former Gov. Mitt Romney, saying he is a fiscal conservative who never raised taxes. But, back home, they are opposing Gov. Deval Patrick's proposal to eliminate corporate tax loopholes by saying businesses already had their taxes raised in 2003, 2004 and 2005. The funny thing is Mitt Romney was governor in 2003, 2004 and 2005. JIM HAND covers politics for The Sun Chronicle. His commentaries appear in this space on Saturdays. Contact him at 508-236-0399 or at jhand@thesunchronicle.com.
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