I was watching CNBC and a union thug official stated that every $1 of food stamps generates $1.74 of economic activity. I would be interested in everyone’s response to his claim and how his claim should be delt with.
I think they should therefore print up infinite foodstamps
That $1.74 is how much it costs to repair the damage the government has caused. The Keynesian multiplier tells you how much it costs to break even. It can cost $1 to break a window but $10 to build a new one. You’ve generated $10 in “economic activity”, but you aren’t any richer.
When someone makes a claim such as that, it shouldn’t be up to anyone who disagrees to come up with a response to prove it wrong. That would be equal to coming up with a rebuttle to an individual who wants to argue that unicorns and leprechauns exist. If they want to believe in fantasy, it should be they who waste their time and efforts with such bullsh*t.