I feel stimulated

It is a slow day in the small Pennsylvania town of New Castle and streets are deserted.

Times are tough, everybody is in debt and living on credit.

A tourist visiting the area drives through town, stops at the New Penn Hotel, 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 hotel 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 looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how a “stimulus package” works.

  • pimathman

    Wow, that’s the way our economy works. I don’t know if Jack is going to appreciate his town’s role in this story. :)

    • http://1nvestor.wordpress.com 1nvestor

      Someone noted that the Co-Op was left out, didn’t have to pay the distributor. Must be reference to the Fed. LOL

  • squizz

    lets keep kicking the can down the road…

  • Kris

    About 8 years ago my boss at the time was waxing philosophical about sovereign debt. In his words “every country owes every other country more than they can ever pay. Sooner or later we are going to call the whole thing a wash.” While it’s doubtful this will happen willingly because of the relative amounts each country owes we might all just rip the $100 bill up into little pieces, haggle about the size of the piece that our countries deserve, gripe about the compromise, then move on down the road licking our wounds or touting the strength and resilience of our nation’s economy depending on the size of the $100 bill shred we emerge with.

    • http://1nvestor.wordpress.com 1nvestor

      Nice comment, thanks for leaving it. This must be one tough can we are kicking down the road. Goodness.