Food Stamp Stimulus Felt Coast-to-Coast

(CBS)  Some lawmakers on Capitol Hill have begun talking about the idea of a second stimulus package to boost the economy. Meanwhile, the effects of the first one are being felt in places you might not expect.

CBS News correspondent Terrell Brown reports on one ripple effect stretching from coast to coast.

John Sweredoski is seeing the green shoots of economic recovery on his own farm in southern California

"I'm hiring people. I've never sold so many vegetables in my life," said Sweredoski, co-owner of Takahashi-Sweredoski Farms.

Sweredoski is reaping the early benefits of President Obama's economic stimulus program which gives poor families additional food stamp money to spend each month.

One Los Angeles market has had an 88 percent increase in food stamp purchases and that has given Sweredoski more money to spend on expansion.

"I recently bought a new John Deere tractor," he said, a purchase that hopefully added - or at least saved - American jobs in another part of the country.

Starting in April, a family of four on food stamps received an extra $80 a month - from $525 to $606.

The Department of Agriculture estimates that every $5 of food stamp spending results in $9.20 worth of economic activity.

That's why the food stamp boost is also helping this in New York City, where one supermarket manager says his sales are up 10 percent since the stimulus program started.

"We're actually thinking of hiring more people," said Jose Almonte, the manager of an Associated Supermarket.

"Food stamps have the biggest bang for the buck of any kind of stimulus," said Moodys.com economist Mark Zandi.

That's because food stamps put money into the hands of people who will spend it quickly.

It's estimated that a $1 increase in food stamps creates $1.73 in stimulus. Infrastructure, another high-impact stimulus creates $1.59 for every dollar spent. Compare that to tax cuts which generate only $1.03 for every dollar returned to taxpayers

The food stamp stimulus, while powerful, is temporary. But it's a spark that can ignite business - and put more food on the table during difficult times.

(CBS)

[debinok1]

Amazing comments, just amazing. People screaming because people WITHOUT jobs are needing help buying food. That $600 a month in food stamps is for a family with NO INCOME, for every dollar their income goes up, their food stamps go down. Why would people have NO INCOME, because JOBS are vanishing at a record rate. When their unemployment runs out and they still have NOT found a JOB, what are they supposed to do, STARVE? Current UNADJUSTED unemployment is around 20%, 60 Million people that have lost their jobs. The majority of these people collecting food stamps are the same people who lost their JOBS. Most of the remaining people receiving food stamps are elderly or disabled. The MYTH of only people on welfare use food stamps is a MYTH, the fact is only about 2% of the population or 1/150 are actually welfare cases.

[ibsteve2u]

Two things, the first of which is: Man, the righties are mean-spirited. But what's new?

The second is that the great truth in this story is: "That's because food stamps put money into the hands of people who will spend it quickly."

And therein lies the fallacy of "trickle-down" economics. Do you think the people who were suddenly taking home an extra million bucks a year because of Republican tax cuts went out and bought another million bucks worth of food? Or 1200 sets of washers and dryers? Or 400 cars?

Hell, no; quite the contrary. They either sat on it, or invested it where it would make the most money: In the emerging markets, where it ultimately built more factories to take more American jobs.

Landing us where we are today. Greed kills brain cells. And economies. And countries.

[ibsteve2u]

lolll...oh, wait, I forgot:

Some - too much - of that Republican-fueled liquidity sought fast money...faster even than could be had by exploiting the differences between America and the emerging markets in the cost of living and worker safety and environmental laws.

Some of that tax cut money started leveraging bad mortgages into even bigger money...and some of that tax cut money and the leveraged mortgage money (gee, thanks, banks) started speculating in oil...

Driving the price of energy up...and our idiot President said "We'll use corn!" and drove the price of food up...

And the escalating costs drove too many borderline mortgage holders over the cliff...

And the house of credit cards came a'tumblin' down.

[baicas]

My grandmother use to have a saying, You can't keep going to well without it running dry. This means if people keep expecting taxpayers to subsidize their lifestyles, and the government keeps expecting us to pay for everything one day there will be a reckoning, and I believe it will be soon. Taxpayers are getting fed up, and ready to revolt, and I don't blame them. No one in Washington is doing anything to help the middle class, who are the ones suffering the most in this situation, they can't afford to buy decent food, but their neighbor of aide can go and stock up on sirloin steaks, roast pork etc...One day something will have to give.

[Benton09]

It's a good thing that it does stimulate the economy for business. I don't think they are complaining. Some people on Food Stamps are lazy and looking for a free ride, some are not. Some Republicans would sell their mother to make a buck, some would not. See, it works both ways.

[tbbaot]

I detect by the tone of this article that some people actually think that food stamps "stimulating" the economy is a good thing. What a pathetic thing this is for America. Taking from hard working people and handing it over to someone else. This is not America this is a socialistic nightmare and will be the end of us if allowed to continue.
By the way, I have a family of four and never did I spend $600 a month on food. We are able to eat very well for less money.

[aChangeOfIdeas]

I was thinking the same thing, I have a family of four (with two hungry teenagers!) and I budget $700/month on my entire "grocery" bill - meaning everything at the store (dish soap, razors, plastic bags, laundry detergent, shampoo, etc) meaning our "food" bill is much less. Granted, I spend a lot of time figuring out how to keep costs down and we grow a lot of our own vegetables, but now I seriously can't see how anyone can claim to be "hungry" on Food Stamps now. Plus, no one in my family is overweight so there goes the "poverty leads to obesity" claim too. Food stamps obviously give you enough money to eat well if you're smart about it.

[SouthwestisBest]

What these Obama supporters think we're to stupid to realize is that not only are we providing ourselves with food, we are having to pay for these lazy bums who are on a constant diet of food stamps.

It's so funny to watch them shout out praiseeeeeeeeeeeeeeee Obama for the food stamps...they think they're FREE!!!! ROFL!

[SouthwestisBest]

ROFL! So instead of putting people back to work, let's just hand them food stamps instead. That makes more sense.

Vegetable farms! ROFL! If people weren't so lazy, and just a little smart they could grow enough vegables in pots on the patio to feed a family all summer, plus can the excess vegetables for the winter!

Instead of encouraging Americans to provide for themselves, Obama does the same thing he does with every problem, throws taxpayer dollar at it.

When they could have vegetables FREE if they weren't so lazy and dumb!

[aChangeOfIdeas]

"If people weren't so lazy, and just a little smart they could grow enough vegables in pots on the patio to feed a family all summer, plus can the excess vegetables for the winter!"

Wow, how big is your patio? We have a 50' x 200' garden and accomplish this but that's one big patio you would need.

[veritas_1212]

SouthwestisBest (aka Rowdy) writes: "If people weren't so lazy, and just a little smart they could grow enough vegables in pots on the patio to feed a family all summer"

Rowdy, food stamps protect children, who don't make the decisions about whether their parent(s) are inclined to grow vegetables. Many live in urban housing where it is not possible to grow food. Children can't "provide for themselves", so the govt. tries to help those at risk of not having food to eat.

[the_majesty]

The Obama government will soon control the food supply.

[the_majesty]

taebok ... Are all Canadians against Freedom Of Speech ?

[the_majesty]

taebok ... I'm sure many Honorable Canadians are ashamed of you.