Social spending lifts economy

Some Illinois Congressmen have claimed that President Obama's Jobs & Economic Recovery legislation contains too much social spending, which won't stimulate the economy. But the logic is flat wrong.

Putting money in the hands of those hit hardest by this recession is the best way to keep the economy moving - this includes social spending like food stamps and unemployment benefits.

Conservative economist Mark Zandi (Moody's Economy) knows his numbers. In testimony before the House, Zandi stated that for every dollar spent on a temporary increase in food stamps, $1.73 is generated for the economy. Other social spending has the same positive return on investment: $1.64 for every dollar spent in extending unemployment benefits; and $1.36 returned for general aid to state governments.

Those who think the best economic stimulus is cutting taxes should note: according to Zandi, dividend and capital gains tax cuts only provide $0.37 to the economy.

Our dire economic situation calls not for ideology but for putting money where it will work best. Economists acknowledge these programs are the best way to "give the economy a quick lift."

Marianne Amann

Ingleside