Government Spending Multiplier Effect
Minnesota Governor Tim Walz claims that “every $1 invested in SNAP generates $1.80 in economic activity.”
IN FACT, the Congressional Budget Office explains that the economic “impacts” of such government handouts are “very uncertain,” and short-term benefits come at a long-term cost. Economic output boils down to hours worked × labor productivity, and welfare programs provide a means and incentive to work less.
