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>it's not like these people are buying new flatscreens with welfare checks

this is a very good point. I wonder if there is data around that examines how welfare checks are spent.

What do you mean by "welfare". Food stamps are accepted at certain locations for certain items. Unemployment insurance is a general check - but that isn't exactly welfare.

I meant welfare to mean cash payments to the poor as provided for in the Welfare Reform act of 1996. [1]

You brought up a good point to differentiate this from food stamps and unemployment.

[1] http://en.wikipedia.org/wiki/Welfare_Reform_Act_of_1996

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