The Amazing Stimulation of a $1 Check

Via Drudge and the TriCity Herald:

The state of Washington sent out $1 checks to the 250,000 food stamp recipients in the state.

The director of the Community Services Division for the Department of Social and Health Services, Leo Ribas, says the checks mailed Feb. 17 trigger an additional $43 million in federal food benefits. They also connect recipients to an energy assistance program.

Ribas says the $1 check is a one-time move to leverage the federal money. He says next year the state will be able to trigger the federal assistance through a routine deposit in food stamp accounts.

More here.

Comments

[Other Matt]

I wonder what percentage inefficiency was generated with a $1 check sent using $0.30+ postage?

[Warren Buffet]

A $43 million return on a $250,000 investment is pretty good.They ought to try it with their pension funds.

[Joe_D]

As a bonus, this program was a nice stimulus for the post office... generating/saving jobs there. And those administrators who did the grunt work of sending the checks, they were stimulated too! I love "economics".

[P Brooks]

Eat up!

suckers

[Bingo]

Dollar Menu Millionaires!

[Reinmoose]

Awesome

[doubled]

Remember, entities that make profit and create wealth = BAD (think oil companies); entities that waste capital and destroy wealth = GOOD(think government).

[Episiarch]

How much stupid stuff do states do to get various federal funding? From the drinking age (thanks Reagan!) to this, the whole federal money thing is so fucked up.

[stuartl]

Digging holes, filling them in.

[Michael P.]

The director of the Community Services Division for the Department of Social and Health Services, Leo Ribas, says the checks mailed Feb. 17 trigger an additional $43 million in federal food benefits.

This reminds me of the '73 Torino my friend had in high school and the ridiculously complicated procedure required to get it to start each time we wanted to drive somewhere.

[creech]

And how many of the recipients have checking a accounts? What was the fee after taking $1 checks to a check cashing agency?

I once got a $.03 dividend check and several followup letters asking me to please cash it.
Must have cost $40 total for me to receive three cents.

[LarryA]

I wonder what percentage inefficiency was generated with a $1 check sent using $0.30+ postage?

Miniscule when compared with the $20 or so it cost to write and account for each check.

[P Brooks]

Multiplier!

Multiplier!Multiplier!Multiplier!Multiplier!

We MADE money on this!

[Voros McCracken]

I wanted to send this along, but the link is dead.

[John Andrusiak]

Does anyone have any detail on how the $1 checks trigger the federal funding? I would think that would be some interesting reading.

John

[Mike Laursen]

You gotta spend money to make money!

[Invisible Finger]

They ought to try it with their pension funds.

I was thinking replacing government pension plans with food stamps. I'm sure it'll be the other way - I'll be forced to go on food stamps so govt retirees get full benefits.

[mike]

Here in Ohio, we can apparently ratchet up the federal funding by cracking down more on seatbelt laws. The Guv is promising to make seat belt infractions a primary violation and start enforcing it this year to trigger our free money.