House Minority Whip Steny Hoyer (D: MD-5th) has been blasted by conservatives across the country, including congressional candidate and Maryland House Minority Leader Tony O’Donnell (R: District 29C) for remarks he made about the simulative effects of food stamp and unemployment programs.
 
“If you talk to economists, they will tell you there are two things that are the most simulative that you can do,” Hoyer said on Tuesday during a briefing with reporters. “One’s unemployment insurance, the other’s food stamps, okay? Why is that? Because those folks who receive those resources must spend them. And they’ll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that’s not the case.”
 
Hoyer made the remarks while speaking out in support of a plan by President Barack Obama (D) to extend the tax cuts on most Americans while allowing them to expire for Americans with incomes above $250,000/year. Hoyer has been criticized for those remarks by FOX News anchor Neil Cavuto and by prominent conservative blogs such as NewsBusters and TownHall. The O’Donnell campaign seized on the opportunity and sent out a fundraising email saying that it was time to “cancel Hoyer’s food stamp economics.”
 
“Steny Hoyer has finally broken with reality: as reported by the Capitol News Service,” the email sent by the campaign states. “Our economy is in a shambles, unemployment has doubled, and Hoyer thinks we just need more people on Food Stamps. That’s not the American dream, and that’s certainly not leadership. We need real leadership, focused on jobs, working every day on Maryland’s problems – not for his sixteenth re-election. Hoyer wants to re-distribute wealth to buy more votes, when we need a leader that will work to save our opportunities. It’s Time – today is the day – we need your help. If you think It’s Time to cancel Hoyer’s Food Stamp economics, donate $20 today!”
 
Despite the criticism that’s been lodged at Hoyer, some economists do believe that unemployment benefits and food stamp programs are the most simulative programs.
 
 
“Transfers to persons (for example, unemployment insurance and nutrition assistance) would also have a significant impact on Gross Domestic Product (GDP),” CBO Director Douglas Elmendorf said in testimony before House of Representatives&rsq

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