They create dependence when abused.
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The number of Americans on food stamps, or the Supplemental Nutrition Assistance Program (SNAP), is at historic highs, but some on the left—like Paul Krugman—think that’s not such a bad thing because, as they argue, food stamps “stimulate” the economy:
We desperately needed (and still need) public policies to promote higher spending on a temporary basis.… [E]ach dollar spent on food stamps in a depressed economy raises G.D.P. [gross domestic product] by about $1.70—which means, by the way, that much of the money laid out to help families in need actually comes right back to the government in the form of higher revenue.
Others on the left have made similar statements about SNAP stimulus. What’s the problem with this argument?
First, food stamps are intended to serve as a temporary safety net for those who face economic hardship, not as an economic stimulus. To justify food stamps as a stimulus to raise government revenue ignores the long-term economic consequences of welfare spending.Continue reading on blog.heritage.org