How a stimulus package works

Found in the comments section of Gonzalo Lira’s blog:

It is a slow day in the small Colorado 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.

Thank you

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How a stimulus package works in the real world

Also from GL’s blog comments:

Three contractors are bidding to fix a broken fence at the White House.
One is from Chicago, another is from Tennessee, and the third is from Minnesota.
All three go with a White House official to examine the fence. The Minnesota contractor takes out a tape measure and does some measuring, then works some figures with a pencil.
"Well," he says, "I figure the job will run about $900 — $400 for materials, $400 for my crew and $100 profit for me."
The Tennessee contractor also does some measuring and figuring, then says, "I can do this job for $700: $300 for materials, $300 for my crew and $100 profit for me."
The Chicago contractor doesn’t measure or figure, but leans over to the White House official and whispers, "$2,700."
The official, incredulous, says, "You didn’t even measure like the other guys! How did you come up with such a high figure?"
The Chicago contractor whispers back, "$1,000 for me, $1,000 for you, and we hire the guy from Tennessee to fix the fence."
"Done!" replies the government official.
And that, my friends, is how the new stimulus plan will work.

 

Enjoy

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Mirrored from The Slamlander.

You can comment here or there. This is also mirrored on Dreamwidth and Facebook.
All rights are reserved under US copyright law. More detail may be found on my Disclaimers and Rights page.