Friday, December 4, 2009

Government Fiscal Stimulus Policy-Productivity?????

A Canadian tourist is driving through the United States. He stops at the motel and lays a $100 bill on the desk. He says wants to inspect the rooms upstairs before committing to one. The man walks upstairs..............

The motel owner grabs the bill, runs next door and pays his debt to the butcher.

The butcher takes the $100, runs down the street and pays his debt to the pig farmer.

The farmer takes the $100, runs to pay his bill at the Co-Op of feed and fuel.

The Co-op Man takes the $100, runs and pays his debt to the local prostitute.

The prostitute takes the $100, runs to the motel and pays off her room bill.

The motel owner takes the $100, and places it back on the counter.

The Canadian Traveler, comes down the stairs, takes the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

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 the United States and Canadian Governments are conducting business today.


I suppose this is what economists talked about when they said utility.
$100 has become $600
Sent by Prakash Bhartia.

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