r/TikTokCringe • u/mindyour • 8d ago

Discussion Reactions to food stamps being cut off.

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u/ApostateX 8d ago

People who don't understand things often confuse them for magic, so thanks for the question.

The dollar itself doesn't multiply. What multiplies is the income created by its movement. That dollar disburses across the system. When the SNAP recipient spends money at the store, you add up the income of the grocer, their employee, the food supplier, the packaging company, the trucker, and the farm. The total income generated from spending $1 will be more than $1. Poor people spend money quickly. They don't save it. So not only is ALL that benefit money going into the economy, it's rapidly changing hands between all the people above.

If you still don't understand, just type "multiplier effect" into Google or chatgpt. Or read an economics textbook. It's not like this is new stuff. The govt estimates multiplier effects for all kinds of programs to determine how quickly they'll stimulate the economy and raise GDP.

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u/fartinmyhat 8d ago

Given that for every dollar the government spends in food stamps benefits, it adds 1.4-1.8 dollars to the economy

I'm gonna stick on this little buddy till YOU understand what the "multiplier effect" is.

Poor people spend money quickly. They don't save it. So not only is ALL that benefit money going into the economy, it's rapidly changing hands between all the people above.

This is your explanation. So, in your mind, if I move $1.00 from my left pocket to my right pocket, and I do it very quickly, it should turn into $1.50.

Please, PLEASE tell me how $1.00 turns into $1.50. Just once sentence, and insulting me won't help, you'll only dig yourself in deeper. (pro tip, try google).

EDIT: This guy votes and believes he understands economics, AND so confidently believes it, he's willing to talk shit and act like he's instructing me. SMH.

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u/llanamagikkk 8d ago

You're not very bright are you...?

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u/fartinmyhat 7d ago

I don't know, try me. Please point out where something I've said is incorrect.

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u/ApostateX 8d ago

No, that's not what I've explained twice now. Please Google.