Showing posts with label the Multiplier Effect. Show all posts
Showing posts with label the Multiplier Effect. Show all posts

May 16, 2017

The multipler effect, the SNAP food stamp program, and the TEA Party's mask of religion in condemning food stamps.


In September 2013, a well-fed
and highly paid Republican U.S.
House members voted to cut the
SNAP allotments of the disabled,
the elderly, the working poor, and
children by $39 billion/10yrs, all
the while doing nothing to lower
food prices or to create jobs.

Having the poor endure the George
Bush II economy wasn't enough
suffering for them, apparently.
The present state of affairs show that the only effective thing that TEA Party Re-
publicans are doing is turning the lower economic strata of America into an out-
casted population of Acceptable Loss.  Yet, all that they have to do is end the on-
going rise in the Trade Balance Deficit that has been rising to the tune of a half
trillion dollars per year for decades.  It's done by bringing back to America or its
territories the lost 5 million jobs and 60,000 lost manufacturing enterprises that
vanished at the hands of Newt Gingrich, George Bush, and other Republicans
who served the very rich at the expense of the very poor, the working poor, and
those one step from poverty.

None the less, macro-economic behavior is such that a food stamp program takes
zero dollars out of any national economy.  Rather, such a system serves as a stim-
ulus program, on account of a mathematical phenomenon known as the Multiplier
Effect.  It's one of the first things taught to college economics students. 

November 1, 2013:  An automatic decrease of $5 billion in food stamp allotments
went into effect.  It was the result of a 2009 stimulus feature expiring.  Therefore,
it was a matter of reducing a percentage of the SNAP food stamp budget to the tune
of 5%.   Now, this decrease is in addition to the $39 billion SNAP budget reduction
which still needs to be passed by the US Senate and signed into law by the president.

U.S. House Republicans failed to cooperate with the Senate in passing any jobs bill,
and they simultaneously neglected to do what is needed to trigger a decrease in food
prices that rose during the Great Recession and remain hovering at a level too high
for the present American Economy.  Yet, in keeping with their economic incompe-
tence, as if to be purposely sabotaging the U.S. economy for the sake of those who
fund their re-election campaigns, House members succeeded in getting food stamp
benefits cut, as if no one really needs food for survival.  All the while, the reduction
will reduce grocery retail incomes.

An Illustrated Version of the Multiplier Effect
The multiplier effect involves the dominoes effect of spending the same one
dollar and how much that dollar travels in a string of consecutive purchases.
It is the flow of money in a society, resulting from spending.  It's measured in
relation to a change income and a responding change in what is known as the
multiple propensity to consume; the MPS.  Translated into English, the MPS
is the repeated likelihood of a certain percentage of your income being spent,
as opposed to being saved.

The formulas involving  this are reminiscent of hieroglyphics, at first look.
But, the concept is simple logic and it permeates throughout economic math.

The multiplier effect of the food stamp program is such that, for every food
stamp dollar spent, $1.74 in economic activity is generated.  This translates
into business income being generated.   Thus, businesses throughout Ameri-
ca will lose approximately $8.5 billion in income, on account of the Novem-
ber 1 food stamp allotment cut.  Grocery stores lose out when food stamp al-
lotments are reduced.  Thus, food stamp cuts reduce a nation's GDP.

http://www.cbsnews.com/8301-505145_162-57609936/millions-on-food-stamps-facing-benefits-cuts/

Now, former Reagan budget director, David Stockman, pointed out that the
congress appropriated far too much money on military spending, even to the
point of saying on-air that America can defend itself on $400 billion a year,
instead of the $689 and $633 billion plus CIA, NSA, & HLS costs of recent
years.  This $400 billion mark was the usual budget during the Clinton years.

During the Bush and TEA Party years, however, the military price tag became
obscenely high, equaling the accumulative military budgets of the next 22 high-
est military spender nations, as I illustrated in 2011 research on military spend-
ing.  In as much, the proper compromise between TEA Party spending and
economic expert David Stockman's recommendation would be $500 billion.

Incidentally, all that you need to know is entry-level economics, in order to see
how erroneous the Republican Party platform on economics is.  Only when it
comes to derivatives, juxtaposing ratios, and advanced Cost Accounting do you
need an advanced prowess in econ.  None the less, you don't have to be an eco-
nomics expert to understand the overall picture of a nation's economy.  He only
have to be a man of goodwill, a person with a sense of decency, someone in
possession of a conscience.

None the less, the Southern congressman who went on national TV and claimed
to have been an economics expert on account of having raised a family was en-
tirely asinine.  This is because there are different phases and categories of eco-
nomics, such as Macro-economics, Micro-economics, and International Eco-
nomics.  Running a household in micro-economics.

Economics expert, David Stockman, knows economics efficiently and he under-
stands the mechanism of the multiplier effect on an economy. The SNAP food
stamp program increases the multiplier effect.  Meanwhile, tax cuts given to the
greed-stricken wealthy takes money out of the circular flow of currency such
that the money which ended up in overseas tax havens and foreign sweatshop
investments cost America 5 million jobs and 60,000 manufacturing outlets.

In memory of the Pittsburgh steel industry which dissolved in the smelter of Reaganomics.
The obvious on-air liars of the Right Wing, such as Sean Hannity, Bill O'Reilly,
and the Glen Beck who admitted that he does ZERO FACT CHECKING, kept
stating that food stamps go to lazy able-bodied people who have large TV sets,
autos, cell phones, etc.  Well, the vast majority of recipients are children, the
elderly, and the disabled, as well as those who do work but are underpaid.  In
fact, 5,000 active-duty military personnel were reported as being food stamp
recipients.

Concerning children on food stamps, there are red state regions where the per-
centage of them are high ... according to PBS.    This is especially the case in
Rush Limbaugh's native state of Missouri.  In as much, red state TEA Party
voters are sabotaging their own businesses, especially their grocery stores.
There are simultaneously being vicious to children, the elderly, & disabled.
Below is a very partial list from the pertinent PBS publication found at:

http://www.pbs.org/newshour/interactive/patchworknation/stats/food-stamps/percent-children-food-stamps/

              Percentage of children dependent upon food stamps

The $39 billion food stamp reduction vote:

The vote of September 19 was very close; 217 to 210.  The House of Reps voted to
delete $39 billion from the food stamp budget for the next ten years.  Ironically, the
farm subsidies which yearly range from $15 to $35 million will be kept in tact.  The
hypocrisy is that the Republican Party did ZERO to reduce the cost of food which
started elevating during the Bush Recession.

The estimate is that approximately 3 million Americans will become ineligible for
any food stamp allotment, and 850,000 will have their allotments reduced.  Furth-
ermore fifteen Republicans actually voted against the cuts.   Due to the sequester,
the Meals on Wheels program already was reduced. 

Ignoring the Multiplier Effect:  The TEA Party Way

Despite the existence of the Multiplier Effect in the universe of mathematics, Ted
Cruz, Michelle Bachmann, the overpaid & airheaded Sarah Palin, Stephen Fincher
and other TEA Party politicians ignore it.  Interestingly enough,  the aforementioned
persons all adhere to the "Evangelical," "Born-Again," "Fundamentalist," "Southern
Baptist," "Neo-Confederate," "Tent Revivalist," "Saved" religion of the extremely
backward, crass, isolated, segregationist, anti-federal, and rural culture of White
Anglicized America.

In this religion, its adherents believe that each one has the power to interpret the
Bible on his/her own.  So, they decided to take out of context one sentence of the
Bible, as an excuse to take away needed food from the needy, while not reducing
their own congressional pay checks and/or speech fees by even a penny.

As if to be establishing a religion ... namely the religion of Southern slave owners,
cross burners, lynch mob coordinators, and segregationists ...  they also made sure
to keep active the subsidies that gained for Southern Congressman Stephen Finch-
er $3.48 million.

The quote Fincher and Bachmann blasphemously used out of context came from
Saint Paul.  He was writing to a community whose members included people who
believed that the End of World was a few days to a few months away.  This belief
was erroneous, because it contradicted the prophecy that the Faith spread by Peter
and the apostles would first be spread throughout the entire world, before the world
would come to an end.  So, Paul wrote that he did not advise that anyone who was
unwilling to work should be a part of the dining tables ... until they stopped believ-
ing that the world was soon to come to an end.

Concerning the true Christian religion, and NOT the one disfigured through the
centuries by those who broke away from original Christianity, the following is
what the Son of Man will say to those consigned to eternal damnation at the end
of the world, after the Resurrection of the Dead. It directly hits at the heart of the
miserly mindset of the TEA Party Republican:

Then he will say to those on his left, ‘Depart from me, you accursed, into the
eternal fire prepared for the devil and his angels.  For I was hungry and you
gave me no food, I was thirsty and you gave me no drink, a stranger and you
gave me no welcome, naked and you gave me no clothing, ill and in prison, 
and you did not care for me.’

Then they will answer and say, ‘Lord, when did we see you hungry or thirsty
or a stranger or naked or ill or in prison, and not minister to your needs?'
He will answer then, "I tell you solemnly, what you did NOT do for one of
these least ones, you did not do for me."  And these will go off to eternal
punishment, but the righteous to eternal life.” 

According to the Bible, therefore, Stephen Fincher, Michelle Bachmann, and oth-
er TEA Party Republicans are on the road Hell.  At this point, keep one more thing
in mind:  The Bible, the Fathers of the Church, the Doctors of the Church, and the
Papal teachings always refer to Jesus the Nazarene as Christ the King and NOT as
Christ the Republican.  That's King and NOT Republican.  In fact, Christ is surely
not referred to as Christ the TEA Party Republican.  Thus, the TEA Party claim
that Christ was the quintessential TEA Party Republican is literally blasphemy,
according to true Christianity, and NOT the grotesque caricature of it that accom-
panied Cross Burnings, Lynch Mobs, and the 2013 shutting down of the United
States government.

Bill O'Reily and his Doctrine of Hatred

Bill O'Reilly was wrong in his audacious assessment of Christ.  In fact, he claim-
ed that Jesus never said, "Father, forgive them, for they know not what they do."
Well, contrary to non-physician O'Reilly's assessment, crucifixion does not cause
suffocation.  Roman crucifixion results in hypovolemic shock and the complica-
tions involved with it.  If it involved suffocation, then Roman convicts wouldn't
have lasted days on their crosses, at times.  O'Reilly, filled with the hated with
which he is, denies that Christ has mercy.   So, he called the Gospel authors liars,
as if he is now the true voice of truth.

O'Reilly calls himself Catholic, but the center of Catholicism is the Mercy of God.

Thus, in denying that Christ ever said, "Father forgive them," O'Reilly lies. He
lies, due to the hatred that consumes him.  In addition, Bachmann and Fincher
misinterpreted one Biblical sentence, as a ploy to intimidate the public into think-
ing that giving Stephen Fincher $3.48 million is the will of a God who will crush
you, if you don't give Fincher $3.48 million taxpayer dollars.

Concerning this, a FoxNews regular went on air, and as a propaganda ploy, he
asked if food stamp recipients feel shame for using food stamps.  This ploy sug-
gested that food stamp allotments are a disgrace.

ANS:  Food stamp recipients feel a number of things.  They feel hungry and/or
wracked and/or drained and/or burdened and/or one step away from destitution
and/or relief.  Food stamp recipients also feel the cancer and/or the aging and/or
the severe-level asthma attacks and/or the muscle weakness and/or the back pain,
and/or other physical pains.  Yet other food stamp recipients feel their tininess and
frailty, concerning those in the childhood age group.  The children felt hunger too.

One thing is for certain:  The FoxNews people,  morbidly obese Limbaugh, the
admitted alcoholic Glenn Beck who equally admitted to having done ZERO fact
checking all feel no one's pain.  Let it be repeated.  They feel no one's pain.  They
are the ones in the state of delusion.

Of course, the Republicans, dating back to Ronald "Rust Belt" Reagan, stereotype
food stamp recipients as blacks driving Cadillacs.  The truth is that 36% of the food
stamp recipients of America are white.  One point to make at this point is that food
stamp money goes back into the American economy.  Romney's money went to the
Cayman Islands and Switzerland.  Thus, what Romney did damaged America in its
time of need.  What food stamp recipients did was spread money amongst the groc-
er industry.  Incidentally, over 60% of Republicans were indifferent to the idea of
the United States defaulting on its debts.

A couple weeks of the TEA Party way cost America $24 billion.  They should, by
law, be required to reimburse America.  This is because what they did was intention-
al blackmail.  One would state that they are immune.  However, in the presence of
malice, there is no immunity.  What they did was malicious ... or so stupid that they
have the moral duty to resign from their posts, being that they proved that they do
not do what they are doing.

http://www.usatoday.com/story/news/politics/2013/09/19/house-gop-food-stamp-cuts/2839343/