It is a slow day in the small Saskatchewan town of Pumphandle, and 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.



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 now looks to the future with a lot more optimism.



And that, ladies and gentlemen, is how a "Stimulus Package" works.

yup

No it's only works if you buy more junk you don't need. Paying for something already consumed won't help the economy.

If i get a check it will all go towards debt. SO yeah that about sums it up.

That is pretty much how our entire economy works.

I like it! Although the inn keeper was still out any potential earnings.

Chris

You get it, it's too bad most other people don't. It's the same people who think we can just print our way out of it, I think Arengtina and Germany tried that once.
"...the inn keeper was still out any potential earnings"; exactly, you have to actually produce something at the end off the day for the economy to work. Democrats and socialists don't understand that concept.

An inkeeper doesnt produce anything.

No a stimulus package works in the people who pay off their debts have it all end up in the banks. the people who need things have it go to the corporations who bought Congress to steer the money there, the people who buy things, get cheap overseas products sold in America, and the people who have the money, put it into more stocks, bonds and gold, and it all ends up in the 1% pocket.

Bush43's stimulus ended up in house flippers and Mexicans where the debt was traded and caused the 2008 Obama crash. Obama's stimulus, ended up in "green" projects where it was all looted.
2 trillion in stimulus is charged to you, with cheap money driving up inflation, and the Fed charges you interest for your own money, and you pay the Fed twice for the money and the stocks they QE back.

and the cheap skate lubed it up and excaped the corona virus

Yes, he produces a place to sleep.
If that person were not sleeping in an inn he would be sleeping in a house.
Somebody produced both the inn and the house; it's the same thing in the macro economic sense.

im not sure im aboard everything u say bt sooner or later the almighty dollar will fail.... study history.......take your asset of choice... most people are happy with the dow or another firm... i like real

Just saw on our late local news that if you qualify for a stimulus check, and you are due a refund from your taxes next year, that money is deducted from your return. Example, if you are owed a refund next year for $1200, well, you won't get any money back.

He didnt produce nothing unless he built it himself.
Produce-make or manufacture from raw materials or components.

No, The tourist (tax payer) doesn't get his $100.00 back

haha. sound about right.

Yes they do understand it. Our "money" fiat currency (federal reserve NOTE) is nothing more than a promisary note to be paid back + interest aka taxes. It's debt as soon as our government receives it from the Fed. Our government wants us in servitude as we are no good to them if we are not paying interest. They want us in debt forever. A debt based society is the only way they can survive with their luxuries.

I thought we would just have claim it as income.