Source: Dreamstime stock images
A businessman drives into town, stops at the hotel and, laying $100 on the front desk, asks if he could inspect the rooms so that he may choose one for the night.
As soon as he walks upstairs, the hotel owner grabs the money and runs next door to pay her debt to the butcher.
The butcher takes the $100 and runs down the street to pay his bill with the auto mechanic.
The auto mechanic takes the $100 and heads off to pay his account at the local co-op.
The owner of the co-op takes the $100 and runs to pay his tab to the local bar owner.
The bar owner rushes across the street to the hotel and pays off her lunch tab.
The hotel owner then places the $100 back on the counter where the businessman left it.
Just as well, because at that moment the businessman comes down the stairs and informs the hotel owner he’s decided to drive home after all. He picks up the $100 and leaves.
No one produced anything. No one earned anything. However, the whole town is now out of debt and looks to the future with renewed optimism.
And that, ladies and gentlemen, is how a stimulus package works.