Understanding The Government - Stimulus 101

[fez440]

It's a slow day in the small town of Pumphandle and the 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.

(Stay with this.....and pay attention)

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.

(Almost done...keep reading)

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 now thinks that they are out of debt and there is a false atmosphere of optimism and glee.

And that, my friends, is how a "stimulus package" works!

 

[HotLines]

So I guess that is how the republican governors brought their states into the blue. The only thing I didn't understand is why they been against it after they took it, used it, had photos taken with it, done good for their state than said it didn't work..

 

[clhyer]

No one produced anything. No one earned anything. However, the whole town now thinks that they are out of debt and there is a false atmosphere of optimism and glee.

And that's the flaw here.
The butcher was paid, he had produced and provided on credit.
The farmer was paid, he had also produced on credit.
The Co-op was paid, they had earlier provided goods and services, on credit.
The prostitute was paid, she had also provided an earlier "service".
And, the hotel keeper had likewise provided an earlier service.

So, in retrospect, spending $100 here satisfied $500 of debt. A pretty good deal!

And Hotlines, you are spot on with most of the criticism of the stimulus package. You left out the part about them congress critters voting for it, then using it, photos with it and then poor-mouthing it...
C

I expect this to be headed to the political forum shortly!