US Ecomonics

[RLymanC]

On this particular day a traveling Shreveport salesman is driving through
> town. He stops at the Hotel Cazan and lays a $100 bill on the desk saying
> he wants to inspect the rooms upstairs in order to pick one in which to
> spend the night.
>
> As soon as the man walks upstairs, Bosco, the owner, grabs the bill and runs
> next door to pay his debt to Boudreaux the butcher.
>
> Boudreaux takes the $100 and runs down the street to retire his debt to
> Trosclair the pig farmer.
>
> Trosclair takes the $100 and heads off to pay his bill at T-Boy's Farmers
> Co-op, the local supplier of feed and fuel.
>
> T-Boy at the Farmer's Co-op takes the $100 and runs to pay his debt to the
> local prostitute, Clarise,
> who has also been facing hard times and has had to offer her "services" on
> credit.
>
> Clarise rushes to the hotel and pays off her room bill with Bosco, the hotel
> owner.
>
> Bosco then places the $100 back on the counter so the traveling salesman
> will not suspect anything.
>
> At that moment the salesman comes down the stairs, picks up 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, my friend, is how the United States Government is conducting
> business today.

[RitaB]

That was good

If we had a "like" button, I would click it!

[travis bickle]

What you are talking about

On this particular day a traveling Shreveport salesman is driving through
> town. He stops at the Hotel Cazan and lays a $100 bill on the desk saying
> he wants to inspect the rooms upstairs in order to pick one in which to
> spend the night.
>
> As soon as the man walks upstairs, Bosco, the owner, grabs the bill and runs
> next door to pay his debt to Boudreaux the butcher.
>
> Boudreaux takes the $100 and runs down the street to retire his debt to
> Trosclair the pig farmer.
>
> Trosclair takes the $100 and heads off to pay his bill at T-Boy's Farmers
> Co-op, the local supplier of feed and fuel.
>
> T-Boy at the Farmer's Co-op takes the $100 and runs to pay his debt to the
> local prostitute, Clarise,
> who has also been facing hard times and has had to offer her "services" on
> credit.
>
> Clarise rushes to the hotel and pays off her room bill with Bosco, the hotel
> owner.
>
> Bosco then places the $100 back on the counter so the traveling salesman
> will not suspect anything.
>
> At that moment the salesman comes down the stairs, picks up 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, my friend, is how the United States Government is conducting
> business today.

is the Gross DOMESTIC Product (GDP) as opposed to the Gross NATIONAL Product (GHP).

Simplify it - Mrs Jones pays Mrs Smith $10,000 to watch her children for the year. Mrs. Smith agrees and also pays Mrs. Jones $10,000 to watch her children. The result? The GDP "grew" by $20,000 that year.

This situation has been around since about 4 hours after the start of Day 0. It does not matter who is in office, etc. Tax consequences are not being enumerated since the original poster was complaining about "government business" and not tax filing.

[JON]

It is called (pardon (sorryabout) the spelling)

Kayensian(sp) economics, it makes no difference what it is spent on it has to be spent. The main rational for the deficit is it gets one new dollar gets into the system and ist spent 8 times the economy grows. That has been the only goal from DC for a long time.

The federal employees are are line for a 1.7% salary increase now. Someone has offerred an amendment to stop all increases and one is for a 10% decrease. The DC theory is get the dollar to salary and spent 8 (they would like more) and the economy improves.

I hope they are right in their theory. They have been using it for 30 years.

I want all you guys to go buy a new Bently. It makes no difference if you pay cash or use loans. Get the dollars turning faster... :-( Maybe the next generations will understand and be able to clean up this mess.

Get your government job. Tax preparation is required by the government, but the benefits do not come with it.

[jimenright]

There was production

On this particular day a traveling Shreveport salesman is driving through
> town. He stops at the Hotel Cazan and lays a $100 bill on the desk saying
> he wants to inspect the rooms upstairs in order to pick one in which to
> spend the night.
>
> As soon as the man walks upstairs, Bosco, the owner, grabs the bill and runs
> next door to pay his debt to Boudreaux the butcher.
>
> Boudreaux takes the $100 and runs down the street to retire his debt to
> Trosclair the pig farmer.
>
> Trosclair takes the $100 and heads off to pay his bill at T-Boy's Farmers
> Co-op, the local supplier of feed and fuel.
>
> T-Boy at the Farmer's Co-op takes the $100 and runs to pay his debt to the
> local prostitute, Clarise,
> who has also been facing hard times and has had to offer her "services" on
> credit.
>
> Clarise rushes to the hotel and pays off her room bill with Bosco, the hotel
> owner.
>
> Bosco then places the $100 back on the counter so the traveling salesman
> will not suspect anything.
>
> At that moment the salesman comes down the stairs, picks up 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, my friend, is how the United States Government is conducting
> business today.

The hotel provided pork chops for guest meals. The butcher provided butchered pork for the hotel. The farmer provided a fattened pig to the butcher. The Co Op distributed feed to the farmer The prostitute provided pleasure. They all earned taxable income, except the salesman who wasted his time. The $100 was the means of exchange. The government earned future taxes of at least 10% of the $100. The same thing could happen when the hotel sold $100 worth of meals.