How our economy works.

[markw]

This makes it perfectly clear for those of us who never quite understand how the economy works.

It's a slow day in a little East Texas town. The sun is beating down. And the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit.

On this particular day a rich tourist from back east is driving through. He stops at the motel and lays a $100 bill on the desk and says he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher then takes the $100 and runs down the street to retire his debt to the pig farmer.

The pig farmer now takes the $100 and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmer's Co-op immediately takes the $100 and pays 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 rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

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 the United States Government is conducting business today.

 

[randyb]

This makes it perfectly clear for those of us who never quite understand how the economy works.

It's a slow day in a little East Texas town. The sun is beating down. And the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit.

On this particular day a rich tourist from back east is driving through. He stops at the motel and lays a $100 bill on the desk and says he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher then takes the $100 and runs down the street to retire his debt to the pig farmer.

The pig farmer now takes the $100 and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmer's Co-op immediately takes the $100 and pays 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 rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

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 the United States Government is conducting business today.

No one earned anything but the hotel operator has a $100 loss as he no longer has a receivable from the hooker. Hotel operator should not be optimistic as he based his gain on the rich guy taking the room.

 

[Chu Gai]

No one earned anything but the hotel operator has a $100 loss as he no longer has a receivable from the hooker. Hotel operator should not be optimistic as he based his gain on the rich guy taking the room.

Good thing the hooker got paid, eh?! LOL!

 

[randyb]

Good thing the hooker got paid, eh?! LOL!

You bet!

 

[Rickster71]

I don't know...
I was with you up to this point: ...the local prostitute, who has also been facing hard times.

Is that even possible?

 

[markw]

I don't know...
I was with you up to this point: ...the local prostitute, who has also been facing hard times.

Is that even possible?

She makes her living off of hard times.

 

[Alex2507]

...the local prostitute

Stop calling Doug that. He really doesn't live that close.

 

[1hagop]

Being a prostitute is the perfect business. You got, you sell it, you still got it!

 

[STRONGBADF1]

Stop calling Doug that. He really doesn't live that close.

The last time I did that something happened and I wont let animals near me since...

 

[Adam]

Okay, I'm a bit drunk, but I don't see the issue with the economics on this one.

Seems like everyone could have resolved their debt without the $100 bill by simply figuring out what each of them owed one another. For example, if Bob owes Jim $100, Jim owes Sally $100, and Sally owes Bob $100, then there actually isn't anything owed once they work the numbers.

So, the hotel owner got meat, the butcher got a pig, the pig farmer got feed and fuel, the market owner got "satisfaction," and the hooker got a place to conduct business. I'd say that people produced things and earned things. This circle is how the economy should work.

 

[AverageJoe]

...I'd say that people produced things and earned things. This circle is how the economy should work.

Agreed.

But, I think a reality check is in order - how 'bout this version:

The butcher takes the $100, sends $25 to the Federal Government for taxes, breaks open his kids piggy bank to make up the difference, and runs down the street to retire his debt to the pig farmer.

The pig farmer now takes the $100, sends $25 to the Federal Government for taxes, turns in his empty bottles and cans to make up the difference, and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmer's Co-op immediately takes the $100, sends $25 to the Federal Government for taxes, pawns his wedding ring for the difference, and pays 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. Umm, taxes may or may not have been paid.

The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything. He uses the maids tips (he's also the maid) to pay the $25 taxes owed on the income from the hooker.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and spends the rest of the evening with the hooker.

Turns out he actually a US Congressman on a fact-finding-tour... From Massachusetts.

The $100 collected in taxes was paid as part of a $500,000 grant to study the affects of hot weather on prostitution.

Now THAT is how the United States Government is conducting business today.

 

[GranteedEV]

Boy, I'm so glad i live in canada. we don't have to worry about any of this "economy" business, don't got much o that.

 

[Davemcc]

Being a prostitute is the perfect business. You got, you sell it, you still got it!

It's not sales. It's a rental business.

 

[Chu Gai]

That congressman sure sounds like a Weiner.

 

[1hagop]

That congressman sure sounds like a Weiner.

To soon for this joke?

or would that be a premature Weiner?