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100 Dollar Bill.

2K views 9 replies 7 participants last post by  Ryan.Wilton 
#1 ·
It's a slow day in the small 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.
(Stay with this... and pay attention)
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.
(Almost done...keep reading) 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 now thinks that they are out of debt and there is a false atmosphere of optimism and glee.

And that, my friends, is how a "stimulus package" works!

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#7 ·
Correct me if I'm wrong, but the tourist never paid for any services, the $100 was simply a "deposit" to inspect the rooms which he took with him. Since the hotel had no real income, the cycle of debt repayment could never begin.

If all those people got together and talked, they would realize that nobody was in debt.
In actual fact, if they got together, they may soon realize that the hotel clerk was paying with money he didn't have from the beginning and find they are all still indebted to each other.

No one produced anything. No one earned anything. However, the whole town now thinks that they are out of debt and there is a false atmosphere of optimism and glee.
Each of their net worth's had not changed one penny but they sure feel good about it.
 
#6 ·
Yes she did. Follow the chain of events. While the hooker owed the hotel manager 100$, the Co-op guy owed *her* 100$ as well. So on and so forth.

It's like this:

If I owe you 100$, but you owed Greg 100$, and Greg owed me 100$, are we really in debt?

This story just expands the number of characters involved from 3 to 5.
 
#8 ·
NO they are out of debt. But only because the string goes in a complete circle. If one person broke it, the $100 would not have come back to the hotel and he would own the tourist $100....instead of the butcher. Debt very seldom goes in a perfect circle....nor is it always an equal amount.
 
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