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Gov. Janet Mills is standing up for the middle class and businesses when she proposes using the budget surplus to provide $850 checks to about 800,000 Mainers. I think the effect on Maine’s economy will be much more than that original $680 million boost, calculated using an economic multiplier effect model.
Under this proposal, Mills sends that $680 million into the economy where the original recipients spend that money at Maine businesses. Then those businesses spend that money at other Maine businesses, and presto, that $680 million has been spent twice in the economy, for an economic boost of $1.36 billion. But! But! Our clever little governor doesn’t stop there. Then that $680 billion is spent again, and taxed again, for an economic expansion of more than $2 billion.
Mills is a hero to middle-class entrepreneurs. She’s saving Maine businesses one $850 check at a time.