Economy for Dummies

[Montaigut]

This story takes place in a small village that lives off tourism. Because of the financial crisis the tourism business has dried up and villagers have to borrow from each other to survive. Months go by...

One day a tourist shows up looking for a room. He pays the innkeeper EU 100 for the room. No sooner has the tourist gone up to his room that the innkeeper rushes to the butcher with the EU 100 bill to pay him back. The butcher takes the EU 100 bill and goes off to pay the farmer that supplied him with meat.

The farmer takes the EU 100 bill to the local prostitute to settle past business. And in turn, the prostitute takes the EU 100 bill to the innkeeper to pay for the rooms she has been renting by the hour.

Just as she gives the innkeeper the EU 100 bill the tourist comes back down and lets the innkeeper know that the room is totally inadequate. He takes his EU 100 bill back and drives off.

Nothing has been spent, gained or lost. Nevertheless nobody owes anything to anyone in the village anymore.

Isn't this how we are going about to solve the world financial crisis??

[tmac77]

I am thinking that the innkeeper is out EU 100.

[Puros Y Vino]

I am thinking that the innkeeper is out EU 100.

Is he? I say he's even. He got of his EU100 debt with the butcher.

[laficion]

Interesting Dan,

This could be a good solution with taxes .

Thanks l'ami.

[TonyV]

Deficit spending makes the world go round.

[cckandb24]

Is he? I say he's even. He got of his EU100 debt with the butcher.

Yeah but he isnt making any money from the prostitute who is using his inn, since the tourist took the 100 dollars so In my mind he is getting the short end but what do I know. lesson of the story is to spend only what you make and quit this bullcrap of borrowing from your children and grandchildren

[Puros Y Vino]

Yeah but he isnt making any money from the prostitute who is using his inn,

I'm sure an arrangement can be worked out.