Research Says Food Stamps Effective at Stimulating Economy

WASHINGTON, DC – Researchers at USDA’s Economic Research Service (ERS) figure one of the best ways to stimulate the economy, especially in rural communities, is to increase food stamp benefits. The Supplemental Nutrition Assistance Program (SNAP) fed an average of 40.3 million people in 2018 and issued almost $61 billion in benefits. Research shows that during economic downturns, when more individuals become eligible, the impact of the additional money multiplies through the local economy. For every $1 billion of additional SNAP benefits during a slowing economy, researchers say it increases Gross Domestic Product (GDP) by $1.54 billion. In addition, the added investment trickles down to the agricultural economy to the tune of $32 billion. As of January, and before the COVID-19 outbreak, SNAP benefits were available to 37 million American’s – a decrease of more than 8 percent – at an average of $120.24 per person.