A Short Story about Economics….or…..How it works

It is a slow day in town 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 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 hotel 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 the hotel and pays off his restaurant bill with the hotel owner.

The hotel proprietor then places the €100 back on the counter so the traveller will not suspect anything. At that moment the traveller comes down the stairs, states that the rooms are not satisfactory, picks up the €100 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.

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