If we want to mitigate hardship and help the economy get back on its feet when that happens, the prudent move would be to strengthen the “automatic stabilizers” in the federal budget — programs like unemployment insurance, the Supplemental Nutrition Assistance Program, or SNAP (food stamps) and Medicaid — that, without the need for congressional action, expand when the economy is weak and contract when the economy is on its way to recovery. Such programs put money in the pockets of those who suffer most during recessions, money that will be quickly spent back into the economy, and they have an efficient administrative infrastructure in place that can be leveraged to disburse funds rapidly when the need strikes.
.. Consider SNAP. The 2009 Recovery Act temporarily increased the maximum monthly food benefit by about $63 a month for a family of three.
.. So before a recession hits, Congress should enhance SNAP to ensure that such an expansion kicks in automatically when certain economic indicators are breached. Its size should be tied to the severity of the downturn, and the increase would phase out once things improved.