THIS explanation works; A simple to follow analogy:

Discussion in 'General Discussion' started by Liability, Feb 3, 2011.

  1. Liability
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    Liability Locked Account. Supporting Member

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    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 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 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 the Obama Administration's Stimulus Packages work.

    Any questions? Direct all questions to Sen. Harry Reid. He'll provide all necessary answers sometime after the bills are passed. He won't know what are in the bills until they become law.
     
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  2. xotoxi
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    xotoxi Platinum Member

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    Is that town just north of East Bumfuck?
     
  3. Ravi
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    Ravi Diamond Member

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    The hotel owner is an idiot...he just screwed himself out of $100 and the hooker got free room at the hotel.

    :lol:

    But that's what he gets for stealing.
     
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  4. Mini 14
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    Mini 14 Senior Member

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    You understand the hotel owner is analogous to Obama, right?

    Some of the stuff you read on here isn't just words on a screen.
     
  5. pinqy
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    pinqy Gold Member

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    The flaw in the analogy is claiming debt when there was none. Let's look at the accounting:
    Hotel manager: owed $100 to butcher, owed $100 by prostitute. Net account = $0
    Butcher: owed $100 by hotel manager, owed $100 to pig farmer. Net account = $0
    Pig farmer: owed $100 by butcher, owed $100 to Co-Op. Net account = $0
    Co-Op: owed $100 by pig farmer, owed $100 to prostitute. Net account = $0
    Prostitute: owed $100 by Co-Op, owed $100 to hotel manager. Net account = $0

    No one was in debt....credits and debits balance out for every individual already.
     
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  6. Ravi
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    Ravi Diamond Member

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    Yep...but the story doesn't hold water therefore we can declare thread fail.
     
  7. Mini 14
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    Mini 14 Senior Member

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    Is that you, Mr. Keynes????

    And we wonder why our youth are doomed........
     
  8. dilloduck
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    dilloduck Diamond Member

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    As long as no one made a profit on the deal we don't have to condemn anyone.
     
  9. saveliberty
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    saveliberty Diamond Member

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    Some how everyone managed to avoid taxes.

    No one saved for retirement.
     
  10. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Does that mean the Republicans are the Hookers???
     

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