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A $100 Bill (e-mail philosophy)
Email | 2/16/14

Posted on 02/16/2014 3:31:12 PM PST by workerbee

Stay with this one. It is good (makes sense).

It's a slow day in the small town of Pumphandle and the 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.

(Stay with this..... and pay attention)

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 now thinks that they are out of debt and there is a false atmosphere of optimism and glee.

And that, my friends, is how a "government stimulus package" works!


TOPICS: Business/Economy; Humor; Miscellaneous; Society
KEYWORDS:

1 posted on 02/16/2014 3:31:12 PM PST by workerbee
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To: workerbee

Good one!


2 posted on 02/16/2014 3:35:32 PM PST by Yaelle
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To: workerbee

Cute, but it is not how government stimulus works, and anyone who has taken accounting 101 would know that each of those individuals had $100 credit and $100 debit on their books, with a net asset of zero before the stranger came ito town. After the stranger left, everyone had zero credit and zero debit, with the same zero net asset.


3 posted on 02/16/2014 3:40:01 PM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: workerbee

bttt


4 posted on 02/16/2014 3:42:08 PM PST by metmom (...fixing our eyes on Jesus, the Author and Perfecter of our faith....)
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To: Yo-Yo

True. Now everyone is now debt free, have established credit worthiness, and they are all still broke.


5 posted on 02/16/2014 3:47:17 PM PST by Proud2BeRight
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To: workerbee

Assuming all these tax payers are in the 25% tax bracket

The butchet, pig farmer, co op owner, prostitute and hotel owner each owe $25 now to the IRS

the government just made $125 for doing nothing


6 posted on 02/16/2014 3:50:30 PM PST by jcon40
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To: workerbee
And that, my friends, is how a "government stimulus package" works!

Wrong. With the "government stimulus package", the $100.00 bill is taken from the taxpayer and laid on the hotel desk. And the taxpayer never sees it again.

7 posted on 02/16/2014 3:51:43 PM PST by smoothsailing
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To: workerbee

The only problem is that all of those transactions, with the possible exception of the prostitute, would have been taxed by local, state and federal governments reducing the $100 each time the bill changed hands.
The government would then borrow $17 trillion more dollars and everyone is still in debt!


8 posted on 02/16/2014 3:56:16 PM PST by outofsalt (If history teaches us anything it's that history rarely teaches us anything.)
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To: smoothsailing

“And the taxpayer never sees it again.”

the taxpayer will see it another form called pork’


9 posted on 02/16/2014 4:00:02 PM PST by max americana (fired liberals in our company last election, and I laughed while they cried (true story))
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To: workerbee

Well, that’s just great...

except -

The hotel owner is now $100 poorer because he suddenly has neither the cash, nor the outstanding receivable.


10 posted on 02/16/2014 4:13:10 PM PST by Hegemony Cricket (The emperor < still > has no pedigree.)
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To: workerbee

Great one. I got to remember that.


11 posted on 02/16/2014 4:17:03 PM PST by ExCTCitizen (2014: The Year of DEAD RINOS)
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To: workerbee

Another problem: if anyone in town owes $100 to China, that $100 bill is GONE.


12 posted on 02/16/2014 4:17:28 PM PST by AZLiberty (No tag today.)
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To: max americana
the taxpayer will see it another form called pork’

No, he will not see his $100.00 again, it's gone.

As for pork barrel spending, even in it's hay day, it represented no more than 1-1.5% of total tax revenues. The taxpayer was seeing a penny in pork for every dollar the government took from him.

13 posted on 02/16/2014 4:19:03 PM PST by smoothsailing
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To: Hegemony Cricket

Winner


14 posted on 02/16/2014 4:30:06 PM PST by ImaGraftedBranch (...By reading this, you've collapsed my wave function. Thanks.)
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To: Hegemony Cricket
I caught that too. Once the hotel owner was "paid back" his $100, the would-be guest snatched HIS original $100 from him and left the hotel.

There's no free lunch everybody. In this case, the hotel owner got screwed and he didn't even get to enjoy the services of the prostitute.

15 posted on 02/16/2014 4:36:39 PM PST by SamAdams76
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To: Yo-Yo

Thank you. I was about to say something similar.


16 posted on 02/16/2014 4:40:48 PM PST by DBCJR (What would you expect?)
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To: workerbee

Emailed it on. Thanx!!


17 posted on 02/16/2014 4:45:42 PM PST by wizr (We are "one Nation, under God " or "one nation, trod under ". Keep the Faith.)
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To: workerbee

Really no different than Bob owing Bill $100, and Bill owing Bob $100. They swap notes and presto, no debt. The $100 in this scenario serves the same function, but so too would a reversal of order in services provided.


18 posted on 02/16/2014 4:48:12 PM PST by SampleMan (Feral Humans are the refuse of socialism.)
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To: SamAdams76; Hegemony Cricket

The hotel owner is not $100.00 poorer. Remember, he settled his debt to the butcher.


19 posted on 02/16/2014 4:49:19 PM PST by smoothsailing
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To: jcon40

Not eally. In most cases that $100 revenues was offset by an accounts payable - meaning that it produced zero taxable income.


20 posted on 02/16/2014 4:49:54 PM PST by DBCJR (What would you expect?)
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To: Yo-Yo

But the local liquidity jumped for a moment!


21 posted on 02/16/2014 5:18:55 PM PST by freeandfreezing
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To: DBCJR

totally agree even the prostitute had some expenses

my point was the only one that got to sit and do nothing but wait for their check was the IRS and they produced nothing

every one of the others was producing something then running around to cover each other


22 posted on 02/16/2014 5:25:25 PM PST by jcon40
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Comment #23 Removed by Moderator

Comment #24 Removed by Moderator

To: workerbee

25 posted on 02/16/2014 6:12:59 PM PST by GraceG
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To: Yo-Yo

I would have the tourist be the federal tax collector that takes 20 bucks from everyone under threat of imprisonment and after a long day of stealing from the citizens decides to go to the hotel...


26 posted on 02/16/2014 6:18:22 PM PST by GraceG
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To: Hegemony Cricket

Well, done sir.


27 posted on 02/17/2014 8:31:36 AM PST by pilipo (GOP=Gutless Old Party)
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To: workerbee
bttt

An American Expat in Southeast Asia

28 posted on 02/17/2014 8:36:05 AM PST by expatguy (Donate to "An American Expat in SE Asia")
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To: Yo-Yo

Well...why don’t you explain to us rubes how government stimulus works, then?


29 posted on 02/17/2014 9:30:54 AM PST by gogeo (If you are Tea Party, the Republican Party does not want you.)
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To: gogeo

Sure. Give me a hundred bucks.


30 posted on 02/17/2014 9:50:48 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: Yo-Yo

Whether it’s worth $100 depends upon the answer, of course...I guess there is a limit to your pro bono know-it-allism.


31 posted on 02/17/2014 10:06:50 AM PST by gogeo (If you are Tea Party, the Republican Party does not want you.)
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To: gogeo

Another possibility, hopefully more likely, is a limit to one’s “rubeness.”


32 posted on 02/17/2014 11:06:33 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: workerbee

The analogy I always use is a swimming pool. The stimulus is like pumping water out of the deep end into the shallow end, and expecting to fill the pool. Of course, along the way, water spills and evaporates—that would be the petty bureaucrats pocketing their share along the way.

Since originally posting this analogy on FR several years ago, I have heard Rush use it. Great minds think alike!


33 posted on 02/20/2014 4:22:59 AM PST by exDemMom (Current visual of the hole the US continues to dig itself into: http://www.usdebtclock.org/)
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