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AN EXPLANATION ON HOW "STIMULUS" WORKS

 
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Gord Green
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Joined: 06 Oct 2014
Posts: 2985
Location: Buffalo, NY

PostPosted: Mon Apr 13, 2020 6:42 pm    Post subject: AN EXPLANATION ON HOW "STIMULUS" WORKS Reply with quote

It is a slow day in the small Western town of Pumphandle, and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit.

A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk, saying he wants to inspect the rooms upstairs to pick one for the night.

As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.

The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op.

The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.

The hooker rushes to the hotel and pays off her room bill with the hotel owner.

The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything.

At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves.

No one produced anything. No one earned anything... However, the whole town is now out of debt and now looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how a Stimulus package works.

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Bud Brewster
Galactic Fleet Admiral (site admin)


Joined: 14 Dec 2013
Posts: 17558
Location: North Carolina

PostPosted: Tue Apr 14, 2020 8:57 am    Post subject: Reply with quote

________________________________

Gord, that's a very clever way to explain the concept, and I scratched my head for a few minutes while I tried to figure out if anybody was actually helped out, of if they just thought they were! Shocked

I guess in the final analysis, "just thinking" they were helped is good enough in that situation. That's the point, right? Very Happy

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Is there no man on Earth who has the wisdom and innocence of a child?
~ The Space Children (1958)
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Gord Green
Galactic Ambassador


Joined: 06 Oct 2014
Posts: 2985
Location: Buffalo, NY

PostPosted: Tue Apr 14, 2020 3:05 pm    Post subject: Reply with quote

The only one who actually comes up short is the motel owner. He lost the value of the $100 he earned from the prostitute when it was taken back by the tourist. However, that $100 originally removed his obligation to the butcher and it "trickled down" through the system and he originally received it from the tourist with no strings..

Although he was not enriched by the $100, the motel owner came up debt free, whereas before he was in debt previously, therefore the stimulus had a positive effect on all and had no real cost to anyone including the tourist!

Economics is amazing! Is it a science or an art?


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There comes a time, thief, when gold loses its lustre, and the gems cease to sparkle, and the throne room becomes a prison; and all that is left is a father's love for his child.
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Gord Green
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Joined: 06 Oct 2014
Posts: 2985
Location: Buffalo, NY

PostPosted: Tue Apr 14, 2020 11:58 pm    Post subject: Reply with quote

And just WHY do I think it's important today?

We're being inundated with verbiage from the left and the right....TRUTH lies very much in a fog and it will take a lot of effort to discern what is REALLY true. Don't be distracted by either sides flash and bang. Look deeper into it before you drink the kool-aide! It is out there....Don't let ANYONE tell you what is right or wrong....Not even me!

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Eadie
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Joined: 14 Dec 2013
Posts: 1670

PostPosted: Wed Apr 15, 2020 2:11 am    Post subject: Reply with quote

Always use this philosophy:



The government seems to!

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Art Should Comfort the Disturbed and Disturb the Comfortable.
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