Max Baucus: “I am surprised he made that statement, because I think it is inaccurate. Let me explain why. First, money in the hands…”

“I am surprised he made that statement, because I think it is inaccurate. Let me explain why. First, money in the hands of low-income families--and Pell grant recipients are low-income families--is money that will be injected into the economy quickly. Low-income people who receive money spend it. They have to spend it. They have to spend it to make ends meet. They have to pay the bills. They have to pay a mortgage. They have health care. You name it. It is very difficult--very difficult. So to say that money spent on Pell Grants is not a good idea, implying it is not stimulative, is highly incorrect. Low-income people spend the money they receive. And this legislation does increase Pell grants. Again, Pell grants are the grants that go to low-income students to go to college. That is what Pell grants are. He was suggesting that is a bad thing, it is not good to increase Pell grants. I am pointing out that the money in the hands of low-income families, such as Pell grant recipients, is money that is spent in the economy very quickly. It is highly stimulative.”