American Economics 101

[scorpioatl]

In a small southern town, the holiday season is in full swing.  It is raining so there is not too much business taking place. Everyone there is heavily in debt.

Luckily, a wealthy tourist arrives in the foyer of the small local hotel. He asks for a room and puts a $100 bill on the reception counter, takes a key and goes to inspect the room located

Comments

[kodiakva]

I didn't realize 5 people could move so fast in the very few minutes it takes a guy to inspect and decline a room. Maybe those folks should be competitive athletes instead? ;-)

[apparentparadox]

I would have thought it would go more like this:
• The hotel owner takes the $100 bill, pockets $5 and rushes to his meat supplier to whom he owes $100, giving him $95 and promising to pay the rest later.
• The butcher takes the money, pockets $5 and races to his supplier to pay down his debt (so now he only owes $10).
• The wholesaler pockets $5, rushes to the farmer to pay $85 on the $100 for pigs he purchased some time ago.
• The farmer pockets $5, and gives the $80 to a local prostitute who gave him her services on credit, still owing $20.
• The prostitute goes to the hotel where she owed $100 for her hotel room used to entertain clients and pays $75, keeping $5 for herself.

The rich client comes back, decides not to take the room, but now the hotel manager can't return all the money. The rich client beats him up, and the manager complains that it wasn't his fault.

The rich guy is out $25 and tells all his friends never to go there. The hotel fails, the rest go broke. All complain that it was someone else's fault.