Sunday, May 24, 2009

Basic Economics

It is August. In a small town on the South Coast of France,
holiday season is in full swing, but it is raining so there is not too
much business happening.

Everyone is heavily in debt. Luckily, a rich Russian tourist
arrives in the foyer of the small local hotel. He asks for a room and
puts a Euro100 note on the reception counter, takes a key and goes to
inspect the room located up the stairs on the third floor.

The hotel owner takes the banknote in a hurry and rushes to his
meat supplier to whom he owes E100.

The butcher takes the money and races to his supplier to pay his

The wholesaler rushes to the farmer to pay E100 for pigs he
purchased some time ago.

The farmer triumphantly gives the E100 note to a local
prostitute who gave him her services on credit.

The prostitute goes quickly to the hotel, as she was owing the
hotel for her hourly room use to entertain clients.

At that moment, the rich Russian is coming down to reception and
informs the hotel owner that the proposed room is unsatisfactory and
takes his E100 back and departs.

There was no profit or income, but everyone no longer has any
debt and the small townspeople look optimistically towards their future.


Thanks Win S

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