Actually providing an "unlimited" stream of capital, does cause inflation. That's global fact: e.g. New Zealand real estate has started becoming unaffordable [g

Actually providing an "unlimited" stream of capital, does cause inflation. That's global fact: e.g. New Zealand real estate has started becoming unaffordable [google -- it was in the news these days] due to U.S. and other millionaires pouring in cash. I am not going to make the analysis for food stamps. Maybe some stores would have lower prices, no idea, as I don't know the model of issuing food stamps. Think it like this: Alice comes to your store and says I am going to pay 50% of whatever Bob buys. Bob has spending power x. Now Bob, suddenly can buy 2x. However, Bob can buy that many stereos costing x (wlog) and is probably going to just spend x/2 and let Alice pay the other x/2. Or you can say, well I am the only store in town selling stereos, so now stereos cost 2x, as I know you can afford them. Bob, as he has to buy the stereo, is going to pay x and the store owner is going to pocket an extra x, as it is a monopoly (or oligopoly) and thus can keep the prices high. So, if you substitute Bob with an average student and Alice with the government, you will see that the student kept paying the same (at best -- you have to account for market pressures here, general currency inflation etc which cause more inflation) and the government has to keep paying now (or you know break the oligopoly; set different rules).