This is how a stimulus package works.
It's a slow day in the small Saskatchewan town of Pumphandle, and streets are deserted. Time 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 $100.00 bill on the desk saying he wants to inspect the rooms 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.
The butcher takes the $100.00 and runs down the street to retire his debt to the pig farmer.
The pig farmer takes the $100.00 and heads off to pay his bill to his supplier, the Co-op.
The guy at the Co-op takes the $100.00 and runs to the local prostitute, who has also been facing hard times and has had to offer credit.
The hooker rushes to the hotel
and pays off her room bill with hotel
The hotel proprietor then places the $100.00 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 $100.00 bill and leaves.
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 friends, is how a Stimulus package works.