The Stimulus Package... From another Forum

[PeterInSa]

Was going to Change the Town to Marlborough and the Valiant Mechanic to The Detector Store and then the Pick Maker, but the store owner and his Dad who are friends would not be happy.

“The Stimulus Package”....

It is a slow day in the small NSW town of Bathurst, the streets are deserted....

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

A tourist visiting the area drives his Charger into town, stops at the local 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 his local Valiant mechanic....

The Valiant mechanic takes the $100 and runs down the street to retire his debt to the Auto Parts Store....

The Auto Parts Store Owner takes the $100 and heads off to pay his bill to his Parts Distributor....

The Parts Distributor 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, in his Charger....

No one produced anything....

No one earned anything....

However, the whole town, of Bathurst, is out of debt and now looks to the future with a lot more optimism....

“Stimulus Package Works"

This proves the hooker is considered at the time of the event to be a female.

First version.........

In the outback town of Lingalonga things are tough, most people are out of work because of the virus and just about everyone is living on credit.

A government official is driving through town, stops at the hotel-motel and says he wants to inspect the rooms as he was planning to stay for the night. He put a $100 deposit on the counter and heads upstairs to check out the rooms.

As soon as he is out of sight, the motel-hotel owner grabs the $100 and runs next door to pay off his debt to the butcher.

The butcher takes the $100 and heads off to pay his debt to the pig farmer.

The pig farmers takes the $100, runs across the street to pay off his feed bill with the local Co-op.

The manager of the Co-op takes the $100 runs down the back lane and pays off the local prostitute.

The hooker rushes to the hotel and pays off her room bill with motel owner.

The owner the places the $100 back on the counter just as the government official returns and picks up the $100, telling the owner that none of the rooms were satisfactory and he would stay somewhere else.

Now, no one produced anything, no one earned anything, however the motel owner, the butcher, the farmer, the owner of the Co-op and the prostitute are now out of debt and looking forward to the future with a great more optimism.

And that, ladies and gentlemen, is how a "Stimulus Package" works.


Another Version............
But then there's the economist's view............ of the multiplying effect of an injection of cash:

In the outback town of Lingalonga things are tough, most people are out of work because of the virus and just about everyone is living on credit.

A government official is driving through town, stops at the hotel-motel and says he wants to inspect the rooms as he was planning to stay for the night. He put a $100 deposit on the counter and heads upstairs to check out the rooms.

As soon as he is out of sight, the motel-hotel owner grabs the $100 and runs next door to pay off his debt to the butcher.
The bill from the butcher was for a month's worth of meat ...
The butcher takes the $100 and heads off to pay his debt to the pig farmer.
.........Thereby paying for only one of the 20 hogs the farmer sold last month.
The pig farmers takes the $100, runs across the street to pay off his feed bill with the local Co-op.
..........Thereby paying for enough feed for 20 hogs.
The manager of the Co-op takes the $100 runs down the back lane and pays off the local prostitute.
..........Thereby paying for only one or two hours...
The hooker rushes to the hotel and pays off her room bill with motel owner.
...........Thereby paying for 3 nights (at least: she gets bulk rates)
The owner the places the $100 back on the counter just as the government official returns and picks up the $100, telling the owner that none of the rooms were satisfactory and he would stay somewhere else.
...........Recouping the "original investment" via taxation (without receiving a direct benefit from the motel).
...........Now, no one produced anything, no one earned anything, however the motel owner, the butcher, the farmer, the owner of the Co-op and the prostitute are now out of debt and looking forward to the future with a great more optimism.
At each stage the $100 was only a portion of the whole story ... similar to the oil in your engine.
You put 10 liters in, you dispose of 10 liters a few months later ... but without it, the engine wouldn't run.

If the farmer had only charged the butcher $100 for a hog that cost $100 to raise, it's the farmer's stupidity.
If the butcher had charged the motel owner $100 for a hog that cost him $100, it's the butcher's stupidity.
None of those players were that stupid.
And that, ladies and gentlemen, is how a "Stimulus Package" works.
Yes ... when you know the whole story...

The "real world" ain't a zero-sum game.
--dick
p.s. you could consider the $100 to be the interest the people did NOT have to pay to the banker to inject enough cash to operate the cycle.

[Kon61gold]

Good one Pete. Hence the saying, "what goes round, comes round"

Cheers Kon.