Page "Supplemental Nutrition Assistance Program" Paragraph 124

According to Keynesian economic theory, like other forms of government spending, SNAP, by putting money into people's hands, increases aggregate demand and stimulates the economy.

In congressional testimony given in July 2008, Mark Zandi, chief economist for Moody's Economy. com, provided estimates of the one-year fiscal multiplier effect for several fiscal policy options, and found that a temporary increase in SNAP was the most effective, with an estimated multiplier of 1. 73.

In 2011, Secretary of Agriculture Tom Vilsack gave a slightly higher estimate: " Every dollar of SNAP benefits generates $ 1. 84 in the economy in terms of economic activity.

" Vilsack's estimate was based on a 2002 George W. Bush-era USDA study which found that " Ultimately, the additional $ 5 billion of FSP ( Food Stamp Program ) expenditures triggered an increase in total economic activity ( production, sales, and value of shipments ) of $ 9. 2 billion and an increase in jobs of 82, 100 ," or $ 1. 84 stimulus for every dollar spent.