Gregoire’s address: When $1 is more than $1

In her inaugural address, Gov. Chris Gregoire repeated a theme that Sen. Joe Zarelli, a Republican budget-writer, told me before session started: Sometimes $1 is more than $1.

Here’s where Gregoire mentioned it:

“Unemployment benefits are a uniquely powerful tool to benefit our economy. Benefits go directly to folks who need help and they are spent locally to boost business. Every dollar of benefits results in another $1.64 of buying power in our economy. And the tax break will help businesses weather the downturn.”

And:

“Last fall, we greatly expanded eligibility for food stamps, which brings to our state $825 million in federal funding this year. Every $5 spent in food stamps ultimately means $9.20 circulating through our economy.”

With the state expected to cut $5.7 billion — or more — from its budget over the next two years and the state’s economy in bad shape, there will likely be more talk this session about how much every dollar of spending will be worth in the end.

Even the Obama administration is discussing it.

From the New York Times:

Tax breaks, for example, usually produce less than $1 of stimulus for every dollar they cost, economists say. Spending on public construction projects, like highways and bridges, produces the most economic activity — but there is a limit to how many projects are “shovel-ready,” and even those take time to generate jobs and ripple through the economy.

Tags: Budget, economic stimulus, Gregoire