The feds issue $1,000 worth of food stamps....I buy them from people for $.50 on the dollar....they buy cigs. and drugs with their $.50.....I have $.50 to spend on anything I want...that's $500.00....They spend their $500.00, I spend my $500, the gov't is out the original $1,000.....it makes no difference at all where it was spent.
So the store owner pays $500 to get $1,000.
And the person selling the card for $500 loses $500 in buying power
but gains the ability to use the $500 to buy things he can’t with the original card.
So I see a gain of $500 for the store owner
and a loss of of $500 for the card holder
AFTER the government has dispensed the money.