This is Part 2 of the Stimulus Bill Debate between the two Haysayers . You may reference Part One , for the first half of the discussion.
Food Stamps are great; I think it’s a useful program but placing money for in a stimulus bill is ridiculous! If I were to follow your logic, you would have me to believe that those on food stamps only shop for food periodically. I’m sure people are not eating only once a week. The people who are eligible for the stamps under the stimulus will be the same people who are on food stamps now. To say that this will jolt the economy is not accurate, this money should not be apart of a stimulus, it should be funded with all the other entitlement programs during the normal appropriation process. Lastly, if you think that this money will help additional people get on food stamps, that would be unfortunate because this money is a one time disbursement, so if indeed more people are given food stamps, they would eventually have to be cut from the program or receive less assistance because this money is limited.
As for the tax credit, I’m amused how you view poor people as those who waste money on frivolous items. “If you want to see money go back into the economy the quickest, give it to the poorest person. It will go right into a Big-Mac and not in their pocket”. You sure have a good idea of what poor people think…I don’t know what makes you think that a person who is struggling to make ends meet isn’t going to save money either, just because they are poorer and don’t fit your example of a middle class household who owns a home, I’m sure they will save or pay debt with the $30 or $40 a month they get under this tax credit. Either way, that will not stimulate the economy. However, tax cuts probably are the best way to get money directly in the hands of Americans. I would suggest that a bigger amount of relief is given to the middle class since the economy hinges on their financial condition. It would be a stretch to say that giving $1K to a poor family over the span of a year will help the economy. Most people aren’t poor so their spending won’t help achieve the desired outcome.
Food Stamps are great, and placing them in the bill is the exact opposite of ridiculous (wise? I don’t know, I couldn’t think of a good word for ‘opposite of ridiculous’). I might even go as far as to say it is the whole point of the bill! You are right. Most people who use food stamps are already buying food, but they are buying food at the expense of NOT buying something else. Maybe it is clothes, maybe they are getting behind on rent, whatever it is, by having stamps to buy discounted food, they can use that extra money to stimulate the economy elsewhere.
When it comes to the tax credit, you have twisted my words all up. By saying, “It will go right into a Big-Mac and not in their pocket,” I am in no way saying they will blow it on “frivolous items.” I’m saying they will use it immediately because they will have an immediate need for the cash. They will use it on food (Big-Mac), or they will use it on gas to get to work (if they are lucky enough to have a job, in an economy that is currently without stimulus). You said, “I don’t know what makes you think that a person who is struggling to make ends meet isn’t going to save money either.” That is the whole point. If they are struggling to make ends meet, that means that they don’t have the ability to save!