CONTEST TIME! "How a stimulus package works"

[iceburgpens]

Very nice folks! Over 170 posts and only 1 (-1)! Funny answers also. I truely hope that DV will have more posts in a positive atmosphere and do away with all the negative? I hope the positive vibes continue.

[Jetta]

The tourist drove thru town so how could he even go to the hotel?

[cbs71]

The biggest flaw in the story is that no one paid taxes!

OR better yet, how will they pay taxes!

Edited January 28, 2011 by cbs71

[coldanna]

The town of Pumphandle is in Saskatchewan, Canada and not North Dakota in the US.

[teryone2010]

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

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:

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

Contest ends in 48 hours.

[Dinarious Dinar]

The coop is a retail outlet and is not paying the wholesaler. He spent his money on "entertainment" and his supplier is without payment

The payment cycle is incomplete

[Booyaa]

Last guy never gets paid in a ponzi scheme. Motel owner still out 100 bucks.

[DollarBill]

To start with, the first $100 -- if this is real stimulus money-- came from the government, which got it through taxation. So the money was taken from us to begin with, then is "given" back to some of us...

Then, each person in the chain who receives a payment should report it as income, which will be taxed in turn. So the $100, ultimately, could be taxed into oblivion. In other words, it would be worth less and less before the payment to the next debtor is made. In addition, this assumes that none of the debts in the chain accrue interest over time (like credit cards)...Debts tend to grow, they don't remain static....Another point is that it's a straight line chain and not a chain that splits into branches the further down it goes. So the affects of the "stimulus" will become diluted.

This is a one-time payment for everyone, as well. Everyone in the chain will wind up back in debt, again, without ongoing income. So stimulus money would need to continue to be paid to keep this contrived example going.

It also assumes that everyone in the chain owes someone that is linked back to the first person in the chain that will flow back to the top of the chain. Certainly, some of it will flow back to Uncle Sam as taxes on income, but how much? Stimulus truly is fueled by business innovation and services that add value to people's lives and create revenues for themselves as well as ongoing paychecks for their employees-- who then spend (and can be taxed for government services).

So, this example truly is over-simplified and ignores the way the economy really works.

[mrbigglesworth]

EVERYONE HAD THIER DEBT PAID OFF,NO GAINS,NO PROFIT,NO LOSSES,THE ONLY WAY I CAN SEE IT THE TRAVELER IS STILL 100.00 BUCKS AHEAD-HE OWED NO ONE ANYTHING

Actually, he ended up facilitating the hooker's "business" for free. He's lost $100.. And still has to clean up.

[discipletoo]

So why would a tourist put $100 on the counter? He would just ask to see the room before he decides to put up the money. No money...no stimulus

[dwells92250]

One of the flaws I see is the indebtedness was supposedly the same. Using this analogy, no one profits. There is nothing left over. They are just as broke as they were before this guy came into town. All debts were equal?? Interesting concept but someone is marketing their wares way below the market value thereby actually selling their "product" at a loss. As the story continues in this town someone is going to eventually go out of business which will in effect them all in a snowball effect. Nothing left over to reinvest to generate more profits is a no win situation.

[txsrooster]

The guy at the CO-OP needs to find a cheaper prostitute, and the 100 is no longer in the local economy, thus the town still suffers.

[christ4a11]

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

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:

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

Contest ends in 48 hours.

27 January 2011 - 05:02 PM' timestamp='1296169345' post='362529']

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

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:

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

Contest ends in 48 hours.

[teryone2010]

I am a newbie, but here goes anyway. Someone once said, IT IS WISER TO DAZZLE THEM WITH BRILLIANCE THAN TO BAFFLE THEM WITH BULL$#!+. The idea that money is ever free is a major flaw in my thoughts. Guess the other flaw has to be the optimism. People are so blind by the idea of stimulus they actually believe things will be better if stimulated. I get stimulated from lots of things. A cold beer, a good meal, a good woman, a win on a sports bet, and most of all seeing the stupidity out there. Nothing from nothing leaves nothing, you gotta have something if you want be with me. Like in the song, optimism is a hope, a desire, and yes needed. What we believe in is our choice, surely we will not fall for all this STUFF.

[bwsi45]

I don’t believe anyone would have left a $100 bill with the clerk in the first place. No money was left in the town. The Tourist took it with him. Everyone DID get something if you read carefully but at the same time no one MADE anything either. Isn’t a stimulus package suppose to create income?

[christ4a11]

No one invested the 100.00 to make more money to pay off dedts so they could then have more money in their pockets.

Christ4a11

[havasumom]

Nothing was stimulated , or increased, so the use of the word stimulus to describe what occurred is , to me, not accurate.Just a few people "robbing Peter to pay Paul". It is actually a "stagnant package".

[slinger]

you do not put your money down anywhere till you see the product .

[frostynine]

Because the traveler took the money with him no money actually entered the economy so the debt was forgiven, not paid. The Co-Op guys debt was forgiven by the Prostitute. Because the Hotel Owner forgave the Prostitutes debt it's safe to assume he wasn't trading board for sex. On the other hand, the Butcher and the Pig Farmer still owe her. Hookers can't help being screwed.

[Richguy]

Not sure about the flaw, but I am sure the prostitute represents Barack Obama.

[faithkeeper]

the flaw is that in real life the government (aka the traveler ) takes taxes from everyone who touches the $100 bill. so by the end we are still in debt and there is less and less money with each transaction to return to the lender.

[JShipp74]

1. The tourist drove through the town not into the town meaning he didn't stop in that town.

2. The stimulus is coming from Adam.....he is giving a VIP membership for 2 people (I don't understand how the first person to answer correctly ends up winning one VIP membership for 2 people)

[frogfp]

So what you're sayin is that the tourist is like all us working folk who pay for the stimulus package by paying taxes. But in this case the "rich" tourist (aka working class) got to keep his money.....that's not even close to how a stimulus package works.

[sassytexan]

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

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:

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

Contest ends in 48 hours.

[JShipp74]

1. The tourist drove through the town not into the town meaning he didn't stop in that town.

2. The stimulus is coming from Adam.....he is giving a VIP membership for 2 people (I don't understand how the first person to answer correctly ends up winning one VIP membership for 2 people)

Well this is not a free VIP membership when you have to work this hard for it. .................... STIMULUS