House Democrat: Welfare Stimulates Economy

House Minority Whip Steny Hoyer (D-MD) obviously did not take economics and has no idea how economics work. That isn’t surprising. Many in Congress don’t know either. On Tuesday the congressman claimed that food stamps and unemployment insurance are the two “most stimulative” things you can do for the economy.

Mr. Hoyer must be one of the Democrats that believe in the American/Mexico alliance to get more people on food stamps, including Mexican nationals, because it’s such a great idea for stimulating the economy.

In a response to questions asked by reporters as to whether or not Democrats are “reconsidering the wisdom” of letting Bush tax cuts expire at the end of the year, Hoyer said,

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“I haven’t talked to any who are of that mind. If you talk to economists, they will tell you there are two things that are the most stimulative that you can do — one’s unemployment insurance, the other’s food stamps, okay?”

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“Why is that?” he continued. “Because those folks who receive those resources must spend them. And they’ll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that’s not the case.”

Most economists, Mr. Hoyer? Pray tell could he name them for us? Frankly any economist must understand that taking money from some people and giving it to other people will not stimulate the economy. Now, if the people that the money was taken from were allowed to keep that money and spend it as they like, that is a different story. What Hoyer is advocating is not stimulus, it’s legalized theft. It ends up growing government and government dependency by those who are the recipients of their representatives stealing other people’s property.

While the GOP seems to be caving to the political pressure being put on them by the Democrats, they need to look beyond their own political careers and do what is right for all of the American people.

The Democrats are wanting to extend the Bush tax cuts to only those making under $250,000, while the Republicans are wanting the tax cuts extended across the board. The vast majority of Americans are on the side of the Republicans and want tax cuts in place for everyone.

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