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CaliforniaPeggy

(149,595 posts)
Wed Apr 15, 2020, 11:15 PM Apr 2020

Just got this from a friend..........

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.





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Just got this from a friend.......... (Original Post) CaliforniaPeggy Apr 2020 OP
Perfect. That's about it. But, what happens when no "tourists" show up? Hoyt Apr 2020 #1
I guess no "tourists" means the whole town goes broke. CaliforniaPeggy Apr 2020 #2
Yeah but you got 28 recs so far! Solomon Apr 2020 #3
Now it's 33 and I'm amazed! CaliforniaPeggy Apr 2020 #5
Liked it. oasis Apr 2020 #4
I'm glad you did, my dear oasis! CaliforniaPeggy Apr 2020 #6
I am SO looking forward to MY $100 Trump signed stimulus payment. FailureToCommunicate Apr 2020 #7
Did you see where DENVERPOPS Apr 2020 #25
Economists used to refer to this as the payments value chain sandensea Apr 2020 #8
Note that stimulus is pumping in $$$ at the bottom rung of consumer not PufPuf23 Apr 2020 #9
I did wonder if this is really how stimulus packages work. CaliforniaPeggy Apr 2020 #10
Simple example of how Keynesian economics works. nt PufPuf23 Apr 2020 #14
+1 sandensea Apr 2020 #11
I wish this were true. If it were true, it would work. But the tax provision in the bill Bernardo de La Paz Apr 2020 #44
My post was not clear, the stimulus I refered to is the PufPuf23 Apr 2020 #50
Cool. Thanks for showing us to be on the same page. . . . nt Bernardo de La Paz Apr 2020 #51
Sounds like Dog River, FoxNewsSucks Apr 2020 #12
That was really funny! Baked Potato Apr 2020 #13
On further review... Roy Rolling Apr 2020 #15
Indeed, he did not get to keep it. That's the flaw of logic. Thanks for bringing that up! CaliforniaPeggy Apr 2020 #16
I was unsure Roy Rolling Apr 2020 #18
+1 n/t Tommymac Apr 2020 #24
Yes but he did pay off his debt ... Kablooie Apr 2020 #30
That's what I think. He benefited by discharging a debt as did all the others. Alwaysna Apr 2020 #31
The story also says "nothing was produced," which obviously isn't true as there were debts coti Apr 2020 #57
Brilliant, CaliforniaPeggy! nt Heartstrings Apr 2020 #17
Thank you, but I didn't write it! Not that smart, nope! n/t CaliforniaPeggy Apr 2020 #21
I shall pass around, If you don't mind,, benld74 Apr 2020 #19
Please do share it around! After all, I stole it from my friend. CaliforniaPeggy Apr 2020 #20
K&R stonecutter357 Apr 2020 #22
ROFL Joinfortmill Apr 2020 #23
Perfect! Talitha Apr 2020 #26
I'm so glad you like it, my dear Talitha! CaliforniaPeggy Apr 2020 #27
Ok, will do - and give your Friend our thanks, ok? Talitha Apr 2020 #28
I told her where I'd posted it and that it was a hit. CaliforniaPeggy Apr 2020 #29
LOL! nt pengillian101 Apr 2020 #62
A missing element intrepidity Apr 2020 #32
Great - as long as there's a continuous string of tourists, jmg257 Apr 2020 #33
Great example! kentuck Apr 2020 #34
I get how this shows how a stimulus works... logosoco Apr 2020 #35
Let's look at this microculture through a different lens. KY_EnviroGuy Apr 2020 #36
That is wonderful, my dear KY! CaliforniaPeggy Apr 2020 #40
You're welcome CP and I thank you for seeding my thoughts..... KY_EnviroGuy Apr 2020 #41
You turned everybody in town into a scumbag and that's your idealized version? smh n/t mathematic Apr 2020 #52
Bwaaaaaaaaaaaaaaaaaaaaaah1 malaise Apr 2020 #37
the 100 dollar bill was simply a clearing mechanism, and only as a medium of exchange that could Celerity Apr 2020 #38
Now do one on debt forgiveness. WhiskeyGrinder Apr 2020 #39
What a delightful analogy! Thank you! . . . . nt Bernardo de La Paz Apr 2020 #42
Stealing for FB. 😄 nolabear Apr 2020 #43
Can I copy this? pandr32 Apr 2020 #45
You can certainly copy it. And you can say "I got this from a friend." CaliforniaPeggy Apr 2020 #55
Where is the tax break for the billionaire so it can trickle down? keithbvadu2 Apr 2020 #46
What if the $100 never gets back to the Hotel? ThoughtCriminal Apr 2020 #47
may steal and pass around rurallib Apr 2020 #48
re: stimulus marieo1 Apr 2020 #49
I was stealing myself for the punchline to end with... Pluvious Apr 2020 #53
Old! First saw it in 2009, a slap at Obama's stimulus Grins Apr 2020 #54
Yeah, judging from what I've heard, I knew it was old. CaliforniaPeggy Apr 2020 #56
This is why Keynesian Economics is the best economics. Sloumeau Apr 2020 #58
Ok Peggy, once more from the top and slower this time! marble falls Apr 2020 #59
You mean Mnuchin and Powell are going to reposses my $1200? bucolic_frolic Apr 2020 #60
Brilliant! BobTheSubgenius Apr 2020 #61
i have think that out Demovictory9 Apr 2020 #63
 

Hoyt

(54,770 posts)
1. Perfect. That's about it. But, what happens when no "tourists" show up?
Wed Apr 15, 2020, 11:33 PM
Apr 2020

On positive side, what if several tourists arrive? More questions arise, but the likely answers are depressing.

My lady friend today said that not only will she tell medical people to take no heroic efforts to save me, but she will tell them to make no effort at all. . . . . . .

CaliforniaPeggy

(149,595 posts)
2. I guess no "tourists" means the whole town goes broke.
Wed Apr 15, 2020, 11:36 PM
Apr 2020

Glad you enjoyed!

I think you should have every effort made in order to save you.

After all, you saved my thread from the ignominious fate of no responses...........

DENVERPOPS

(8,817 posts)
25. Did you see where
Thu Apr 16, 2020, 12:47 AM
Apr 2020

if it is sent to your bank, like most will be, Trump is allowing the Bank to take the money and apply it towards any debt you owe them.....I would hope I didn't have a car loan or mortgage with that bank if that bank wants to interpret it that way......

PufPuf23

(8,769 posts)
9. Note that stimulus is pumping in $$$ at the bottom rung of consumer not
Wed Apr 15, 2020, 11:51 PM
Apr 2020

putting $$$ into corporations.

Granted there is the modest stimulus check many get.

CaliforniaPeggy

(149,595 posts)
10. I did wonder if this is really how stimulus packages work.
Wed Apr 15, 2020, 11:54 PM
Apr 2020

My friend is a Republican and I sometimes wonder if she's making a right-wing comment with the way the joke ends.

sandensea

(21,625 posts)
11. +1
Wed Apr 15, 2020, 11:55 PM
Apr 2020

To say nothing of putting taxpayer dollars right into Cheeto and Price Jared's pockets (the depreciation and pass-through cap eliminations Cheeto had the GOP sneak into the bill at the last minute).

His ransom, really.

Bernardo de La Paz

(49,000 posts)
44. I wish this were true. If it were true, it would work. But the tax provision in the bill
Thu Apr 16, 2020, 12:33 PM
Apr 2020

... has benefits 85% of which go to millionaires by taking away a restriction in the 2017 tax giveaway. This affects their 2018 and 2019 tax returns.

The economy runs when money is in motion. Injecting it into bottom rung of consumers put it immediately into motion. Giving it to the 1% means it gets parked in real estate and investment art.

PufPuf23

(8,769 posts)
50. My post was not clear, the stimulus I refered to is the
Thu Apr 16, 2020, 01:31 PM
Apr 2020

stimulus in CAPeggy's scenario not the Trump stimulus you mention. As you state, the Trump stimulus stimulates the top and not the bottom (consumers).

I 100% agree with you.

Roy Rolling

(6,915 posts)
15. On further review...
Thu Apr 16, 2020, 12:04 AM
Apr 2020

I’m a math nut, and natural skeptic.

Everyone feels better except the hotel owner—the $100 eventually paid to him by the hooker was snatched by the tourist. He didn’t get to keep it.

Great story, though. And stories are how to give hope, sometimes false hope. The cuteness of the story hid a fatal flaw of logic. It’s the same way Trump deceives people by saying China pays the U.S. billions in tariffs—it’s intuitively true but mathematically flawed. And because he can’t tell the difference he has multiple bankruptcies from deluding himself.



CaliforniaPeggy

(149,595 posts)
16. Indeed, he did not get to keep it. That's the flaw of logic. Thanks for bringing that up!
Thu Apr 16, 2020, 12:09 AM
Apr 2020


That flaw made me put the last sentence in bold. I wasn't sure it really worked.

Roy Rolling

(6,915 posts)
18. I was unsure
Thu Apr 16, 2020, 12:20 AM
Apr 2020

I didn’t want to be a smart ass. But if you agree, Then I know my math is correct.

But a bigger point evolved—how things that seem so correct intuitively can be at odds with reality. It’s one of Trump’s favorite propaganda tricks.

My current rant: we need to stop saying “open” and “reopen”, that is Trump framing. States don’t open or close like an amusement park or jar of mayonnaise.

The words “open” or “close” make the event seem precise and simple, when in fact it is staged and messy. That bastadization of the language is another Trump propaganda weapon.

Kablooie

(18,628 posts)
30. Yes but he did pay off his debt ...
Thu Apr 16, 2020, 01:59 AM
Apr 2020

Which is what he would have done with it if the tourist didn't show up and the Hooker had paid her bill herself.
So it works out.

coti

(4,612 posts)
57. The story also says "nothing was produced," which obviously isn't true as there were debts
Thu Apr 16, 2020, 03:26 PM
Apr 2020

over services or goods that had been provided.

Talitha

(6,582 posts)
26. Perfect!
Thu Apr 16, 2020, 01:25 AM
Apr 2020

Thanks Peggy, this is pure gold.

Ok if I spread it around a bit?

There's a few people I know who would love it!

CaliforniaPeggy

(149,595 posts)
27. I'm so glad you like it, my dear Talitha!
Thu Apr 16, 2020, 01:44 AM
Apr 2020

Of course you may spread it around! After all, I took it from my girlfriend so all of you could see it!

intrepidity

(7,294 posts)
32. A missing element
Thu Apr 16, 2020, 04:32 AM
Apr 2020

For each of those transactions, the government expects to be paid income tax

That $100 will have been taxed multiple times on the way back to where it started. That just seems wrong. But then, I'm no economist.

jmg257

(11,996 posts)
33. Great - as long as there's a continuous string of tourists,
Thu Apr 16, 2020, 05:20 AM
Apr 2020

And no one owes more then $100.

Imagine if the hooker wanted to eat too.
And the hotel guy needed food AND electric.
And the butcher’s freezer broke down.
And the pig farmer needed...whatever pig farmers needed.

logosoco

(3,208 posts)
35. I get how this shows how a stimulus works...
Thu Apr 16, 2020, 06:01 AM
Apr 2020

and I am certainly not a germaphobe, but I kept picturing germs spreading on that $100 bill!

KY_EnviroGuy

(14,490 posts)
36. Let's look at this microculture through a different lens.
Thu Apr 16, 2020, 06:03 AM
Apr 2020

Suddenly one sunny day, a hooker in the small Saskatchewan town of Pumphandle has an epiphany caused by watching Little House re-runs on TV and decides to take a humanist view of life.

She runs to the guy at the Co-op and tells him because she misrepresented her abilities numerous times, she's forgiving his $100 debt and he can consider her past services a gift of love.

The Co-op man takes this moment to heart, runs to the pig farmer and admits he's overcharged him for years for low-grade feed and forgives his $100 debt.

The pig farmer takes this moment to heart, visits the butcher and admits he's been in cahoots with the weigh scale man for years so he received less pork than he thought and forgives his $100 debt.

This event bring forth an epiphany in the butcher that he's been watching too much Fox-Canada and should make amends with the motel owner, to whom he's sold inferior cuts of meat for decades.

The butcher visits the motel owner, apologizes for his corruption and forgives his $100 debt. This shakes the motel man to his very core.

A tourist visiting the area stops at the motel and to his surprise the motel owner offers him two free rooms for the night if he will cater to the other businesses in town. The visitor whole-heartedly agrees and brings his extended family in from his van.

The visiting family loves the town and stays for a full week, spending their entire vacation budget of $1,000 within the town, including big meals at the motel's restaurant, sausage to take home from the butcher, big bags of chicken feed from the Co-op and the family's lonely uncle sneaks in two late-night visits to the hooker.

The town is now out of debt and $1,000 more wealthy. The vacationing family is happy and will return next year.

That, ladies and gentlemen, is how humility, honesty, and a healthy community works.


KY...............

KY_EnviroGuy

(14,490 posts)
41. You're welcome CP and I thank you for seeding my thoughts.....
Thu Apr 16, 2020, 11:29 AM
Apr 2020

which gave me chance for a good dose of humanist thinking and emotional release in writing it.

Excellent way to gain a little peace in this age of tremendous turmoil.


KY.............

Celerity

(43,333 posts)
38. the 100 dollar bill was simply a clearing mechanism, and only as a medium of exchange that could
Thu Apr 16, 2020, 07:35 AM
Apr 2020

have been completely dispensed with (not needed at all) if the parties in the exchange circle simply got together and agreed to cancel out their debts to each other.

There was no net economic activity as each person had a 100 USD debt and a 100 USD asset (the debt owed to them.)

It is a bad example of macroeconomics as there are no explanations for the pre-existing state of the system, either from exogenous or endogenous forces. It implies that town is closed loop internal system, which is impossible, as the town cannot consume more than it produces under a system of purely internal debt.

keithbvadu2

(36,784 posts)
46. Where is the tax break for the billionaire so it can trickle down?
Thu Apr 16, 2020, 12:41 PM
Apr 2020

Where is the tax break for the billionaire so it can trickle down?

Don't eat the yellow snow.

ThoughtCriminal

(14,047 posts)
47. What if the $100 never gets back to the Hotel?
Thu Apr 16, 2020, 12:51 PM
Apr 2020

Apparently this is why every town needs a prostitute.

But in that case, the hotel owner has to come up with $100 but really is no worse off than when he owed it to the butcher.

Pluvious

(4,310 posts)
53. I was stealing myself for the punchline to end with...
Thu Apr 16, 2020, 02:26 PM
Apr 2020

... The bill being contaminated with C19 and infecting the whole town.

( I read too many fiction stories heh )

Grins

(7,217 posts)
54. Old! First saw it in 2009, a slap at Obama's stimulus
Thu Apr 16, 2020, 03:08 PM
Apr 2020

As usual it was “simple answers to simple people on complex problems”.

CaliforniaPeggy

(149,595 posts)
56. Yeah, judging from what I've heard, I knew it was old.
Thu Apr 16, 2020, 03:23 PM
Apr 2020

I'm sorry to hear it was used against Obama.

Sloumeau

(2,657 posts)
58. This is why Keynesian Economics is the best economics.
Thu Apr 16, 2020, 04:21 PM
Apr 2020

Keynes believed that economics largely revolved around demand. Now demand is not just people wanting stuff. It is also about people having the ability to buy or barter for stuff. It is why FDR created the WPA and the CCC so that regular people would have jobs, get important stuff done, and then have money to buy things like food and clothing. It is why Bill Clinton created a massive infrastructure program. It is why Obama created a $787 billion stimulus package. It is always why Trump singed a stimulus package worth over $2 Trillion. When the economy crashes, only Keynesian Demand-Side Economics makes the economy move again, and you can tell Supply Side Economic Republicans to go pound sand!

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