Issues in Food Assistance. Effects of Changes in Food Stamp Expenditures Across the U.S. Economy

摘要

The Food Stamp Program (FSP) is one of the Federal Government's primary countercyclic assistance programs, providing assistance to more households during a recession and to fewer households during an economic expansion. These countercyclical changes in FSP expenditures can also have beneficial stabilizing effects on the economy, stimulating economic activity during a recession and slowing demand during an expansion. The extent of the program's economywide stabilizing effect depends on how the program is financed. The Budget Enforcement Act of 1990 requires that all Federal programs be funded through budget-neutral means (balanced budget) except in emergencies as determined by Congress. The Food Stamp Program provides an economic stimulus during a recession only if emergency-type financing is used.