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Started By
Message
So how does a Stimulus Plan work?
Posted on 4/12/20 at 6:31 pm
Posted on 4/12/20 at 6:31 pm
Sorry if germans, but needed to be alone.
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.
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.
This post was edited on 4/12/20 at 6:35 pm
11
Posted on 4/12/20 at 6:32 pm to tigernnola
(no message)
This post was edited on 2/5/25 at 9:28 am
Posted on 4/12/20 at 6:33 pm to tigernnola
It's the broken window fallacy
Posted on 4/12/20 at 6:33 pm to tigernnola
Did your grandmother post this or send it to you in an email?
Posted on 4/12/20 at 6:34 pm to tigernnola
the government gives money to business which they have shadowed investments in so that they don't lose money, then gives themselves a raise and a bonus
Posted on 4/12/20 at 6:35 pm to tigernnola
quote:
imes are tough, everybody is in debt, and everybody is living on credit
No not really. Lots of people out of debt.
Posted on 4/12/20 at 6:35 pm to tigernnola
Bump
Posted on 4/12/20 at 6:36 pm to tigernnola
Why would a town full of just 5 people need a hotel?
Posted on 4/12/20 at 6:41 pm to tigernnola
quote:
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.
You forgot this:
When tax times rolls around, each of the above named people have to pay $150 for the original $100 given out. To pay that debt, they raise prices on their goods and services.
Posted on 4/12/20 at 6:42 pm to tigernnola
quote:And works quite well...
And that, ladies and gentlemen, is how a Stimulus package works.
The hotel owner "borrowed" the $100, used it to pay off his debt, thus allowing a subsequent series of businesses to pay off their debts and then he pays back the $100 he borrowed when the tourist came back down and retrieved his hundred dollar bill.
I bet you thought you were proving how bad a stimulus plan works when what you did is describe how successful it can be.
This post was edited on 4/12/20 at 6:55 pm
Posted on 4/12/20 at 11:12 pm to LSURussian
And to build on this, since there are no longer debts to be paid, the next time a businessman stops at the Motel and stays the night for $100:
The guest gets a place to sleep so they can conduct business in the morning
The Motel owner keeps $20 and give $80 to the butcher for processed meats
The butcher keeps $20 and gives $60 to the pig farmer for the animal
The pig farmer keeps $20 and gives $40 to the co-op for services provides
The guy at the co-op keeps $20 and buys a $20 hooker
And the town of 5 becomes a little bit wealthier
The guest gets a place to sleep so they can conduct business in the morning
The Motel owner keeps $20 and give $80 to the butcher for processed meats
The butcher keeps $20 and gives $60 to the pig farmer for the animal
The pig farmer keeps $20 and gives $40 to the co-op for services provides
The guy at the co-op keeps $20 and buys a $20 hooker
And the town of 5 becomes a little bit wealthier
Posted on 4/12/20 at 11:15 pm to tigernnola
Is everyone giving back their stimulus check in a month?
Posted on 4/12/20 at 11:17 pm to Skinner
quote:
The Motel owner keeps $20 and give $80 to the butcher for processed meats
The butcher keeps $20 and gives $60 to the pig farmer for the animal
The pig farmer keeps $20 and gives $40 to the co-op for services provides
The guy at the co-op keeps $20 and buys a $20 hooker
And the town of 5 becomes a little bit wealthier
From the looks of it, the hooker is going to make $80 in this mythical town.
Posted on 4/12/20 at 11:20 pm to tigernnola
quote:
Sorry if germans, but needed to be alone. 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.
Everybody walk the dinosaur?
Posted on 4/12/20 at 11:22 pm to noonan
If she was a little more business savvy she would had never incurred debts in the first place
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