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I'm sure you've heard the Keynesian claim that food-stamp spending generates far more income than the money dished out for them. This smoking-gun article explains why.

Near the end of it: "[A] Baltimore grocery store owner who was ordered to pay $1.3 million in fines after EBT tracking revealed that he had illegally trafficked in food stamps to the tune of $400,000. Investigators determined that the store was taking in far more revenue from EBT cards than its inventory made possible. They said 10 EBT card-holders confessed to selling benefits for cash on 203 occasions." (Underlining added.)

How do you think that store's revenue would show up in the national-account statistics?

The article claims that EBT makes fraud far more difficult, but I have my doubts. This article shows that any 'stimulative' effect of food stamps is, prima facie, due to food-stamp fraud.

I hope you enjoy, or are at least enlightened by, this "FR Archive Dive." I found it early this morning because I couldn't access FR and I was curious about the old days. The original poster was BobS.

1 posted on 08/26/2011 4:26:29 PM PDT by danielmryan
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To: danielmryan

Just another reason for why they got rid of food stamps.


2 posted on 08/26/2011 4:28:33 PM PDT by muawiyah
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To: danielmryan

Now I just need to find out where in Florida I can buy food stamps at less than half face value so I can cut my grocery bill in half.

How about we start giving out FOOD instead of food stamps from now on? This along with required drug testing for those getting assistance would collapse every blighted section of society nearly overnight.


3 posted on 08/26/2011 4:38:25 PM PDT by Teflonic
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To: danielmryan

Some months ago, as I was heading into Giant Eagle, a “minority” woman asked if I had a grocery list. She said she would buy my groceries, if I would pay her 75% of the tab. I said no, and she immediately dropped her fee to 50%. I told her to get lost. She screamed every name in the book at me as I went into the store!


5 posted on 08/26/2011 4:43:03 PM PDT by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
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To: danielmryan

It’s the reason they got rid of food stamps and went to debit type cards.


6 posted on 08/26/2011 4:43:54 PM PDT by Retired Chemist
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To: danielmryan

http://www.youtube.com/watch?v=fOZ-Etb0k0Q


7 posted on 08/26/2011 4:45:37 PM PDT by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: danielmryan

This article is so bogus! There is no such thing as “food stamp books” anymore. At one time food stamps were paper coupons that were the same as cash. Not only could you sell them on the street for fifty cents on the dollar, but every little bodega and mom & pop store in America were buying them for cash, too. It was very corrupt, and very wasteful. About ten years ago they wised up and changed the system. Now food “stamps” come on a card with a PIN. It’s gaudy and has a big American flag on it. So when you’re standing at the checkout counter at the grocery store, everybody can see that you’re swiping a food stamp card. And if some loser gets desperate enough to sell it, then he has to sell his PIN, too.


13 posted on 08/26/2011 5:08:49 PM PDT by jespasinthru (Proud member of the Vast Right-Wing Conspiracy.)
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To: danielmryan
D.C. police say stamps are such common currency in the drug world that heroin and crack cocaine dealers routinely operate in the shadows of the food stamp office on H street.

Obama's Stash!

18 posted on 08/26/2011 5:12:31 PM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: danielmryan
DEFUND socialist collectives, foreign and domestic. All of this fraud goes away. It's the socialism, stupid. It's destroying The United States of America.
19 posted on 08/26/2011 5:19:54 PM PDT by PGalt
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To: danielmryan

This article is so bogus! There is no such thing as “food stamp books” anymore. At one time food stamps were paper coupons that were the same as cash. Not only could you sell them on the street for fifty cents on the dollar, but every little bodega and mom & pop store in America were buying them for cash, too. It was very corrupt, and very wasteful. About ten years ago they wised up and changed the system. Now food “stamps” come on a card with a PIN. It’s gaudy and has a big American flag on it. So when you’re standing at the checkout counter at the grocery store, everybody can see that you’re swiping a food stamp card. And if some loser gets desperate enough to sell it, then he has to sell his PIN, too.


23 posted on 08/26/2011 5:30:36 PM PDT by jespasinthru (Proud member of the Vast Right-Wing Conspiracy.)
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To: danielmryan

This “news” is 3-1/2 years old.


32 posted on 08/26/2011 6:11:43 PM PDT by JoeGar
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To: danielmryan; BobS
The original poster was BobS

. Why not ping him to his own thread? He's still here.

35 posted on 08/26/2011 6:31:14 PM PDT by Graybeard58
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To: danielmryan

Obama voters.


38 posted on 08/26/2011 6:40:23 PM PDT by Venturer
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To: danielmryan

They haven’t used food stamp books in years. It’s on a debit card now.


49 posted on 08/27/2011 4:39:56 AM PDT by autumnraine (America how long will you be so deaf and dumb to the chariot wheels carrying you to the guillotine?)
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To: Admin Moderator
Thanks for adding the year of publication to the title.
50 posted on 08/27/2011 4:54:40 AM PDT by danielmryan
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To: danielmryan
THE GREAT OBAMA DEPRESSION

THE GREAT OBAMA DEPRESSION, where the soup lines have been replaced with food stamps, 99 weeks of Unemployment, and having your mortgage paid by the few tax serfs still working.

Politicians are like dirty diapers should be changed often.

51 posted on 08/27/2011 6:32:45 AM PDT by GailA (Any congress critter who fails to keep faith with the Military, will NOT keep faith with YOU!)
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