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CONTEST TIME! "How a stimulus package works"


Adam Montana
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This was sent to me via email. I get a LOT of these, obviously... I mean, over 35,000 people have my email address. :blink:

I almost responded... but then I thought it would be better if the level headed, intelligent members of DV took a crack at it!

I mean, let's be honest. I can say a lot, but as a group you can all say MUCH MORE. (That's the premise of VIP and getting a better rate to cash in, but I digress...)

So, let's have some fun with this!

Please read the following... and I implore you to find the one serious flaw in this email.

What's at stake?

A FREE VIP MEMBERSHIP FOR TWO PEOPLE.

Yep, that's right! FREE VIP.

I am going to sponsor a 3 month VIP membership to two people:

  1. The highest rated response
  2. The first person to point out what I personally think is the biggest flaw in this "theory".

(Yes, this is a completely biased contest that could be considered rigged... whoever plays their cards right the fastest could end up with a HUGE benefit from a free VIP membership!).

On the other hand, you also have a chance to blast a tank sized hole in the logic of whomever wrote this piece of garbage... I think we ALL win here!

WARNING!!!! This is a "Thinking Person's" contest! Ignorant, blind, bleating sheep need not apply!

Here's the email:

It is a slow day in the small North Dakota town of Pumphandle, and the streets are deserted. Times are tough, everybody is in debt, and everyone is living on credit.

A tourist visiting the area drives through town, stops at the hotel, 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 looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how a stimulus package works

Have fun, and may the best and highest rated answer win!

Contest ends in 48 hours.

:tiphat:

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The flaw is, no one made any profit, they are still as poor as they were before the traveler arrived, because he took his $100. with him. Therefore there is no capitol gain, no money for investment, no liquidity, and everyone is right back on the credit system. It is a no win scenario.

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The problem is ... the problem remains the same. No one has any money because money is not coming into the community. THE TOUREST LEFT and took his money with him. In order for a stimulus package to work, a product must be produced and purchased.

The flaw is, no one made any profit, they are still as poor as they were before the traveler arrived, because he took his $100. with him. Therefore there is no capitol gain, no money for investment, no liquidity, and everyone is right back on the credit system. It is a no win scenario.

Dangit Dflake - you beat me! lol

Edited by LazySusan
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The money is bordered from a person that is not involved in the circle of debt, further more the only way this works is because the hotel keeper that received the initial 100 dollars is the same person in line to get paid a debt owed.....that is why this works. The circle is complete.

Typical stimulas monies are paid back to the provider and the receiver of the funds does not have a credit balance from the entity providing the stimulus monies.

Just my thoughts!

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Currently North Dakota has a 100% employment rate, but thats splitting hairs. The hotel owner is out $100 and that money is no longer being circulated in the economy, ie. depts are somwhat taken care of, but the root problem remains, lack of money to continue commerce.

Edited by mrbadwrench
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In a sense everyone did get something for nothing. Although the Hotel guy lost the money owed him buy the hooker he relinquished a debt to the butcher. He borrowed money with zero interest! That to me is a win, win. But... this was no stimulus package, no mention of IRS, welfare or Government it was just a simple case of hometown business.

As I am thinking more into this The hotel propritor did pay interest on his "borrowed money" equal to that of what he lost from the hooker. So, yep I am thinking the Government was involved and this is how a stimulus package works.

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First of all, the PIG FARMER?? REALLY?? Seriously though the nice traveler created a taxable transaction to the other recipients except for the hooker since her pay is unreported cash income. The hotel owner was not unable to keep the $100 so in reality he is still down $100 but like our government he used someone elses money to pay his debt.

In reality though it would most likely goes as follows;

The hotel owner took the money next door to pay the butcher and the butcher sent it off the his Swiss Savings account where the rest of his million are thanks to the revaluation of his Iraq dinar investment back in 2010. The rest of the town is still screwed.... :blink:

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Well so far nobody has paid any taxes on the $100.00 so the IRS would have a field day with all the back taxes owed. And being from such a small town is it possible they are all related? smile.gif Just sayin....

I like your thoughts on this. I thought about adding something like this to my answer. Gotta love the IRS. I think the traveler was an undercover IRS agent who watched the entire circle from the window upstairs and documented it all for a stimulus package later to be introduced called the "Government Always Gets Theirs".

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the hotel owner actually 'misappropriated' (stole, embezzled even if he did repay later) the $100 that wasn't his to pay his debt, thereby qualifying himself as a 'politician', whereby he could call any transaction that benefits himself a 'stimulus package'.....................and he will probably win his bid as mayor.................GO RV!!!!!!!!

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The Most Serious Flaw is that everyone knows there are no Tourists to North Dakota smile.gif

On another note, I simply can't help noticing the pun that the "prostitute is facing 'hard times' " smile.gif

Adam should give you free membership for your witty humor. laugh.gif that was funny.

Edited by newest member
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The traveller first off goes into a MOTEL

At the end of the whole town running around paying everyone else the $100 bill ends up being placed on the counter by a Hotel PROPRIETOR

The Hotel Proprietor has gone in to the MOTEL to pay his DEBT to the MOTEL Proprietor but the traveller believes that the $100 bill is what he placed on the counter in the first place.

It’s all about the juggling of words

Same as maths

3 blokes have a steak, bill comes to $30.

Each man pays $10, waitress rings in the amount finds they have been charged $5 more than should be.

She sticks $2 in her pocket goes back gives each man $1 each

Each man has paid $9

Waitress has $2

3 x $9 is $27 plus the $2 in her pocket equals $29

Where is the other dollar gone?

Now Adam give me that VIP mate

Edited by zantac
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Quote

It is a slow day in the small North Dakota town of Pumphandle, and the streets are deserted. Times are tough, everybody is in debt, and everyone is living on credit.

A tourist visiting the area drives through town, stops at the hotel, 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 looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how a stimulus package works

---

Thanks Adam :)

Here is my simple take on this. First things first.

This is not at all how the "stimulus" package worked. In regards to what has been called

"stimulus" among a few other names that we have seen for the last 2 years, this has nothing to do with how it has

actually been done. In this email, it is assumed this temporary visitor who came to inspect the hotel room

would have paid or laid anything on the desk, just to inspect a room. You do not pay anything to inspect

the room. The hotel owner took the 100$ bill that was NOT yet earned. First thing that caught my eye.

Having said that, the serious flaw in this email is 1 simple fact *IF* this is supposed to describe or simplify how "stimulus" works.

In reality, the stimulus mission that the federal treasury implemented, NEVER ended up within main street

USA or the hotel owners desk. The program has stimulated nothing other than for the specific group that it was crafted for....the banking system

and ultimately wall street USA, in addition to other countries banks. The banks that received TARP funds were bailed out, some

expecting they would lend this new found liquidity into their communities, etc., but that has never happened. This "free" money was pumped

into bond markets and more worthless paper assets, enriching the players without stimulating anyone BUT banks and wall street, (the players).

The stimulus funds were borrowed money from taxpayers (future tax revenues), and instead of one town being in debt, the whole

country is now in debt for generations to come while those who received the funds used them to build their own

balance sheet.

No town or municipality or state has become debt free and looking to the future with any optimism. In fact, the situation

has worsened. No jobs, no growth, states facing bankruptcy. The serious flaw is the money that belonged to the tourist

who laid it on the hotel/motel owners desk was NOT the hotel owners ( the bank) at all. Neither was the monies spent by the treasury. The last

state of the borrower is worse than the first. ALL borrowed funds, ALL still credit. It is not possible to pay back debt via "credit" and call it truly "paid".

Someone still has to hold the original debt. It just changed hands. That someone is taxpayers as a whole....pumphandle USA. That my simple take. :D

All my best! :)

Jim

---

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