SNAP: Lifeline for Families, Support for the Economy

Posted by on December 11, 2011

Lifeline for Families, Support for the Economy:
The Supplemental Nutrition Assistance Program

Millions of Americans remain unemployed in the aftermath of the Great Recession and wage growth has lagged behind inflation, straining the budgets of millions more. The Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, provides critical support to individuals and families during hard economic times. SNAP is one of only a few sources of public support for those who have exhausted their unemployment benefits and yet still cannot find work. SNAP benefits, while modest, work to guard against malnutrition and other negative outcomes resulting from food insecurity. SNAP also provides substantial spillover benefits to the broader economy, as cash-strapped recipients quickly pump the money they receive back into the economy. This works to stabilize demand and promote job retention and growth during cyclical downturns in the economy. One dollar of spending on SNAP is estimated to increase GDP by as much as $1.79 – a significant “bang for the buck.” In other words, spending on SNAP not only provides much-needed support for vulnerable Americans, it also gives a significant boost to the economy.

REPORT BY THE U.S. CONGRESS JOINT ECONOMIC COMMITTEE CHAIRMAN’S STAFF
Senator Bob Casey, Chairman
Prepared by the Chairman’s Staff of the Joint Economic Committee

http://jec.senate.gov/public/index.cfm?a=Files.Serve&File_id=e11b6de8-b245-43e6-82c1-eb22258b96f6