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How A STIMULUS works

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posted on Dec, 9 2011 @ 12:27 PM
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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

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.

(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!


When you look at it simple as this..you realize you got lied too.



posted on Dec, 9 2011 @ 12:36 PM
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Australias treasurer Tony Swan won treasurer of the year this year.Mostly due to a successful stimulus which helped Australia get through the financial crisis unscathed.

Nice try though



posted on Dec, 9 2011 @ 12:37 PM
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reply to post by TheAmused
 


OMG...this is fantastic! did you come up with this? I think even a child could understand this, or a politician ...lol! Thank you for the post.



posted on Dec, 9 2011 @ 12:37 PM
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Why is that how a stimulus works?

Please expand on that part.
edit on 9-12-2011 by TsukiLunar because: (no reason given)



posted on Dec, 9 2011 @ 12:41 PM
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reply to post by TsukiLunar
 


Because the government takes money from the taxpayers to give back to taxpayers to pay their bills, then the companies use that money to pay their bills or taxes...the same money keeps going around and around without new money being taken in, say from selling things to other countries and such. ;That's my example anyway.



posted on Dec, 9 2011 @ 12:49 PM
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Originally posted by timetothink
reply to post by TsukiLunar
 


Because the government takes money from the taxpayers to give back to taxpayers to pay their bills, then the companies use that money to pay their bills or taxes...the same money keeps going around and around without new money being taken in, say from selling things to other countries and such. ;That's my example anyway.


Nice, except a stimulus does a lot more than just give money to the public.


Oct 12 2011 The $787 billion economic stimulus package was approved by Congress in February, 2009. The package was designed to quickly jumpstart economic growth, and save between 900,000-2.3 million jobs. The package allocated funds as follows:

* $288 billion in tax cuts.

* $224 billion in extended unemployment benefits, education and health care.

* $275 billion for job creation using federal contracts, grants and loans.


useconomy.about.com...



posted on Dec, 9 2011 @ 12:52 PM
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reply to post by TsukiLunar
 


Everything you posted is money going to the public...your argument makes no sense.



posted on Dec, 9 2011 @ 12:53 PM
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reply to post by TheAmused
 


Ok, so I guess I was being too optimistic when I said anyone would understand this....if abstract thinking is a problem forget it...



posted on Dec, 9 2011 @ 12:57 PM
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edit on 9-12-2011 by TsukiLunar because: (no reason given)



posted on Dec, 9 2011 @ 01:13 PM
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Originally posted by TsukiLunar
Why is that how a stimulus works?

Please expand on that part.
edit on 9-12-2011 by TsukiLunar because: (no reason given)
Because the "money" isn't real or really there. Fiat currency is an illusion that makes you feel empowered, makes you feel that you got "something", but it is really like cotton candy. You bite into it and find it is all fluff and no substance. Fiat currency is like a dime store cowboy, all hat no cattle.



posted on Dec, 9 2011 @ 01:16 PM
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Originally posted by timetothink
reply to post by TsukiLunar
 


Everything you posted is money going to the public...your argument makes no sense.


Sorry, for some reason I thought that the other post was directed towards me.

No, it is not just "going to the public". It is doing specific things to jump start the economy. They are not just giving people money(mostly), they are stimulating various social programs that will use the money for the good of the people.

A stimulus is not just to pay people bills. It is used to create jobs and stimulate education funds along with other things.



posted on Dec, 9 2011 @ 01:19 PM
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reply to post by DarthMuerte
 





Because the "money" isn't real or really there. Fiat currency is an illusion that makes you feel empowered, makes you feel that you got "something", but it is really like cotton candy. You bite into it and find it is all fluff and no substance. Fiat currency is like a dime store cowboy, all hat no cattle.


You say that, but stimulus's do work a lot of the time(second post in the thread). And your oversimplification is misleading to what is actually going on and what effects result from it.



posted on Dec, 9 2011 @ 01:28 PM
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Originally posted by TsukiLunar

Originally posted by timetothink
reply to post by TsukiLunar
 


Everything you posted is money going to the public...your argument makes no sense.


Sorry, for some reason I thought that the other post was directed towards me.

No, it is not just "going to the public". It is doing specific things to jump start the economy. They are not just giving people money(mostly), they are stimulating various social programs that will use the money for the good of the people.

A stimulus is not just to pay people bills. It is used to create jobs and stimulate education funds along with other things.
You know, if they would have just split that money up among taxpayers(people who actually PAY taxes not net tax consumers), each tax payer would have gotten over $300,000. Those people would have used the money to pay off their homes(no more housing crisis and banks get "bailed out" too), they would have bought new things or fixed old ones(thus securing jobs for many more people), and they would not be as debt ridden and fearful of the future as they now are. If we had to have a "bail out" bailing out the tax payers would have made a hell of a lot more sense than bailing out banks and corporations "too big to fail".



posted on Dec, 9 2011 @ 01:30 PM
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Originally posted by TsukiLunar
reply to post by DarthMuerte
 





Because the "money" isn't real or really there. Fiat currency is an illusion that makes you feel empowered, makes you feel that you got "something", but it is really like cotton candy. You bite into it and find it is all fluff and no substance. Fiat currency is like a dime store cowboy, all hat no cattle.


You say that, but stimulus's do work a lot of the time(second post in the thread). And your oversimplification is misleading to what is actually going on and what effects result from it.
Really? You call the stimulus a success? Hello Mr Obama, how are you today?(nobody else in their right mind believes that so it must be you)



posted on Dec, 9 2011 @ 01:33 PM
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reply to post by DarthMuerte
 





Really? You call the stimulus a success? Hello Mr Obama, how are you today?(nobody else in their right mind believes that so it must be you)


When did I say Obama's stimulus was a success?



posted on Dec, 9 2011 @ 01:38 PM
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Just as a clarification, since the OP failed to indicate a source or even quote the text... This is not an original piece of work from the OP.. This is a very old (in internet years) joke that I remember first seeing back when we all got stimulus checks in the mail during the Bush era.

It is not at all an accurate representation, though. In the real world, the hotel owner takes the money and then laughs at and chastises the tourist for leaving the money implying that the tourist was irresponsible and should get a job instead of loafing around on "vacation"




posted on Dec, 9 2011 @ 01:43 PM
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reply to post by DarthMuerte
 





You know, if they would have just split that money up among taxpayers(people who actually PAY taxes not net tax consumers), each tax payer would have gotten over $300,000.


Unfortunately such a thing would not work. All types necessary programs sometimes suffer from lack of funding and the like. If we gave all the money to the taxpayers then that would leave those programs out to dry.

However...



Those people would have used the money to pay off their homes(no more housing crisis and banks get "bailed out" too), they would have bought new things or fixed old ones(thus securing jobs for many more people), and they would not be as debt ridden and fearful of the future as they now are. If we had to have a "bail out" bailing out the tax payers would have made a hell of a lot more sense than bailing out banks and corporations "too big to fail".


Bailouts are different from a stimulus. Mostly since they are going almost exclusively to privately owned organizations. However I absolutely agree with the rest of this post. The idea was that the "trickle down effect" would "stimulate" Job growth and employee wages. Well, that didnt work since when people are given money with no binding obligations to use for their kinsmen they tend to keep it to them selves(or between each
other).

Stimulus's HAVE to be used on the public.

Bailouts can be used for basically whatever.



posted on Dec, 9 2011 @ 01:44 PM
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Originally posted by rogerstigers
Just as a clarification, since the OP failed to indicate a source or even quote the text... This is not an original piece of work from the OP.. This is a very old (in internet years) joke that I remember first seeing back when we all got stimulus checks in the mail during the Bush era.

It is not at all an accurate representation, though. In the real world, the hotel owner takes the money and then laughs at and chastises the tourist for leaving the money implying that the tourist was irresponsible and should get a job instead of loafing around on "vacation"



Busted.



posted on Dec, 10 2011 @ 01:45 AM
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reply to post by TsukiLunar
 


You are not understanding the definition of public....



posted on Dec, 10 2011 @ 01:49 AM
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reply to post by TsukiLunar
 


pub·lic/ˈpəblik/
Adjective:
Of or concerning the people as a whole.
Noun:
Ordinary people in general; the community.
Synonyms:
adjective. common - open - national - general - communal - overt
noun. audience - people - house - community




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