Doubling down on his fallacious argument that food stamps do not stimulate the economy, Newt Gingrich told National Review Online: “With regards to her comment that food stamps are actually an effective way to stimulate the economy, well, I don't know any economist who would agree with that. It shows you how inaccurate they are about the very nature of the American economy.”

In fact, economists from across the spectrum have said that food stamps do stimulate a weak economy including Martin Feldstein -- a Reagan administration economist cited in Gingrich's book Winning the Future. In January 2008 testimony, Feldstein stated that, in the context of a very weak economy, he favored “increasing federal government payments for food stamps” in order to stimulate the economy.

From Feldstein's January 24, 2008, testimony before the Senate Finance Committee:

The fiscal package should be designed to stimulate economic activity and not to achieve other policy goals.

Its purpose is to increase household and business spending in order to raise total GDP. It should not be taken as an occasion to rebuild infrastructure, to reduce poverty, or to strengthen economic incentives. It should not be taken as an occasion to redistribute the burden of taxes.

That leads me to favor a flat tax rebate to all who paid taxes plus an increased cash transfer to low income groups who are not taxpayers. This could be done by increasing federal government payments for food stamps, TANF (Temporary Assistance of Needy Families) and Supplemental Security Income. The key is to use those transfer payments that can be achieved quickly. [emphasis added]

In addition, as we've noted, other economists also say that food stamps are an effective way to stimulate a weak economy:

• Douglas Elmendorf, director of the Congressional Budget Office, an economics Ph.D. and a former economics professor, said that "[t]ransfers to persons (for example, unemployment insurance and nutrition assistance) would ... have a significant impact on GDP." He added: “Because a large amount of such spending can occur quickly, transfers would have a significant impact on GDP by early 2010. Transfers also include refundable tax credits, which have an impact similar to that of a temporary tax cut.”

• Mark Zandi, an economics Ph.D. and chief economist of Moody's Analytics and an advisor to John McCain's 2008 presidential campaign, stated that “extending food stamps are [sic] the most effective ways to prime the economy's pump.” Zandi further explained: “People who receive these benefits are very hard-pressed and will spend any financial aid they receive within a few weeks. These programs are also already operating, and a benefit increase can be quickly delivered to recipients.” Zandi included with his testimony a table stating that a “Temporary Increase in Food Stamps” had the highest “Fiscal Economic Bank for the Buck” of any other potential stimulus provision he analyzed, providing a $1.73 increase in real GDP for every dollar spent.