No. of Recommendations: 2
I have no idea if this is true.

However, setting aside the the political caterwalling [which is, nevertheless, sure to come], there is one economic fact that should be considered: The marginal propensity to consume is greater in the lowest income quantiles than it is in the highest quantiles. Give poorer people more to spend and they will spend it. The rich will not spend nearly as much of the same amount of money, if retained. If someone doesn't have sufficient food, clothing or other staples of life, the extra funds will go toward acquiring those commodities. Such expendiiures are inherently stimulative economically.

Schvitz
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