Hi all, I just have a quick question.
A lot of people have been saying that unemployment benefits help stimulate the economy. Mark Zandi, Chief Economist of Moody's, has gone on record as saying that $1.00 spent on food stamps actually adds $1.73 to GDP. As far as I can tell from what I've read, the claim that unemployment benefits and food stamps adds to the GDP is uncontroversial.
My question is where does that extra wealth come from? How does government spending, targeted toward the unemployed, actually create this extra $0.73?
Thanks in advance.
A lot of people have been saying that unemployment benefits help stimulate the economy. Mark Zandi, Chief Economist of Moody's, has gone on record as saying that $1.00 spent on food stamps actually adds $1.73 to GDP. As far as I can tell from what I've read, the claim that unemployment benefits and food stamps adds to the GDP is uncontroversial.
My question is where does that extra wealth come from? How does government spending, targeted toward the unemployed, actually create this extra $0.73?
Thanks in advance.