Steny Hoyer: Food Stamps, Unemployment Insurance are the Two Most ‘Stimulative’ Things You Can Do

Posted: Jul 18, 2012 5:40 PM

Some Dems never learn. House Minority Whip Steny Hoyer recently pushed the tired argument that federal handouts are a great way of stimulating the economy. Via CNSNews:

House Minority Whip Steny Hoyer (D-Md.) said Tuesday that food stamps and unemployment insurance are the two "most stimulative" things you can do for the economy.

During a pen and pad briefing with reporters on Capitol Hill, Hoyer was asked if any Democrats are “reconsidering the wisdom” of letting the Bush tax cuts expire at year’s end for the top income earners given the still struggling U.S. economy.


"I haven’t talked to any who are of that mind," said Hoyer. "If you talk to economists, they will tell you there are two things that are the most stimulative that you can do -- one’s unemployment insurance, the other’s food stamps, okay?”


“Why is that?” he said. “Because those folks who receive those resources must spend them. And they’ll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that’s not the case.”


Hoyer’s view on food stamps is likely shared by the President, which helps explain record high food stamp participation. This liberal definition of stimulus helps explain why we are not hearing panic from the left about more people going on disability insurance than finding jobs. Clearly, the liberal establishment considers government handouts part of the solution, and not a safety net. If fostering dependence on government was the best way to stimulate our economy, wouldn’t we be out this recession by now?

This post was authored by editorial intern Kyle Bonnell.