A simplified economic lesson

louixo · Jun 22, 2011

In a little coastal resort town everybody was feeling the pinch of the economic crisis, and because there was little tourism, everybody was living on credit to keep their small businesses afloat.
One day a wealthy tourist arrived in town and presented himself at the only hotel in the center of the little town. He approached the desk clerk, and told him he would like to book his best room
for two nights, laid a hundred dollar bill on the counter, and said he was going to a restaurant to get something to eat, and would be back in a couple of hours and check in with his luggage.
While the man was gone, the hotel proprietor took the hundred dollar bill and went to the meat supplier to pay his bill. The meat supplier in turn, took the same hundred dollar bill to pay something on his feed bill. The feed store owner took the same bill and went to pay his advertising agent, who in turn came back to the hotel and paid his hotel bar bill, as it was the place where he brought his clients to entertain them.
Then the the wealthy tourist came back to the hotel, and informed the desk clerk, that he received an important phone call on his cell phone while he was eating and unfortunately he would have to cancel his stay and head back to the airport. The desk clerk refunded the tourist's money, by giving him back his original hundred dollar bill and the tourist left.
The moral of this story is nobody made any money but.....
"WHEN MONEY CIRCULATES THE ECONOMIC CRISIS IS OVER."

Now why can't our amazing government grasp that idea???!!!

Brisco · Jun 22, 2011

Well, if you look at it like this, no real "positive" economic gain was achieved here by the Hotel Clerk.

Sure, some there had use for that $100 bill, and current debts had payments applied to them. But, in the long run, the hotel clerk gained no profit from that tourist at all. Positive economic growth means people are actually making money, not just shuffling it around, as in this example above.

Right now, above is exactly what our government is doing. Shuffling money around with the stimulus packages they threw out there is the only thing the stimulus packages have achieved. Which is, government money was thrown out so that people could pay bills, taxes, and so on.

Now, back to the example above.......

One thing sticks out. Why would a Hotel operator have a "Meat Supplier" he has to pay??? Tourist that came in said he was going to "a restaurant", not to the Hotels restaurant. Why wouldn't the tourist just go ahead and eat at the Hotels restaurant? Hotel obviously has a "Bar" cause the drunk over at the Advertising Agency carries a tab there, but there is no mention of the Hotel actually having a "Restaurant". Only thing mentioned is it has a "Bar" where one can "Entertain" people at.

Just sounds odd that a "Hotel" would have a "Meat Supplier". If the Hotel had a "restaurant", shouldn't the travels of that $100 bill start out with the Hotel Owner paying $100 to his restaurants "Meat Supplier", and not to the "Hotels" meat supplier???

Personally, I don't think the hotel has a restaurant at all, which makes this whole ordeal, the travels of that $100 bill, all flawed.

OK...........I'll shut up now...............