January 26, 2011

State of our Union

My friend Nemo sent me this funny little story regarding the "stimulus package":

It is a slow day in the small Saskatchewan 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.

1 comment:

  1. The $100 in the tourist pocket was borrowed at at a 19% vig from Won, a Hong Kong loan shark. The tourist didn't rent the room because he knew there were serious consequences if the Won didn't receive a payment the following day. So the tourist slept in his car outside of town. The townsfolk cancelled the debt they owed to themselves by transferring their hotel revenue to Won. Nothing was produced, nothing was earned, the townsfolk still have nothing, and nobody has the money to stay at the hotel because everyone owes Won. This is how the stimulus works.