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Economics 101 Puzzle for Dummies ????


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Posted by Crazy Horse on October 08, 2019 at 12:12:57 from (66.222.186.49):

This is an interesting little story. I am going to keep the last part of it out of the story for now because I think it will distract from the "puzzle" part of this. For now, just reply if you can give a simple explanation, I'm sure it's not all that complex but it seems like it might be .... here ya go .... I'll come back later with "the rest of the story."


It's a slow day in a small town and the streets are deserted. Times 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 upstairs 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 pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.

The hooker rushes to the hotel and pays off her room bill with the hotel owner.

The hotel proprietor then places the $100 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 bill and leaves.

No one produced anything. No one earned anything.

However, all these individuals are now out of debt and there is an atmosphere of optimism and glee.


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