[TheRealThing]

I received this in an email from one of my friends, and it reminded me of this thread. I'd read it back in January, but this email sort of simplifies it for some of us simple minded folk!!





One Hundred ($100) Dollars

$100 Bill

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.

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.

[B]And that, my friends, is how a "government stimulus package" works! [/B]

Well, like Occam's razor states, "The simplest answer tends to be the best." LOL, your post is a perfect example of the 'corrected' logic, behind present stimulus spending to be sure. But, to my way of thinking it is much more than that. It's the best example I've ever seen to explain why Keynesian Economics can never work. I have analogized KE as a conveyor belt of money coming from La-La land but, likely, a better characterization would be that it's more like a lazy-Susan.

I really appreciate your putting that up Granny. So, our newly perfected definition of stimulus spending, which is based totally on the fundamentally flawed concept of Keynesian Economics, might go something like this; KE, a magic money carousel.

I love it! Additionally by way of understanding, what the president's economic advisors have been screaming about since the trillion dollar spending stimulus failed to deliver the desired results is this. Their argument is that instead of the 100 dollar bill, Obama should have plunked down Trillions of dollars in stimulus. That way I guess, it would take much longer for the last of those 100 dollar bills to make it back to the hotel owner's counter. :biggrin:

Of course, we have been speaking about the Dem's adopted and flawed understanding of money. I mean, I know we went off the gold standard and now money is based on the concept of our combined national wealth, some refer to that as being based on theory, but, two and two still equals four, right? At any rate, to prop the Dems unlikely philosophy up, it is necessary for them to ' destroy the witness', by engaging in a campaign of character assassination. Laughing at and otherwise slamming Republicans who attempt to correct them for their Keynesian lunacy, every time they take to the microphone.