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Friday, February 27, 2009

The Stimulus Bill

Shortly after class, an economics student approaches his economics professor and says, "I don't understand this stimulus bill. Can you explain it to me?"

The professor replied, "I don't have any time to explain it at my office, but if you come over to my house on Saturday and help me with my weekend project, I'll be glad to explain it to you."

The student agreed.

At the agreed-upon time, the student showed up at the professor's house. The professor stated that the weekend project involved his backyard pool.

They both went out back to the pool, and the professor handed the student a bucket. Demonstrating with his own bucket, the professor said, "First, go over to the deep end, and fill your bucket with as much water as you can."

The student did as he was instructed. The professor then continued, "Follow me over to the shallow end, and then dump all the water from your bucket into it." The student was naturally confused, but did as he was told.

The professor then explained they were going to do this many more times, and began walking back to the deep end of the pool.

The confused student asked, "Excuse me, but why are we doing this?"

The professor matter-of-factly stated that he was trying to make the shallow end much deeper.

The student didn't think the economics professor was serious, but figured that he would find out the real story soon enough.

However, after the 6th trip between the shallow end and the deep end, the student became worried that his economics professor had gone mad.

The student finally replied, "All we're doing is wasting valuable time and effort on unproductive pursuits. Even worse, when this process is all over, everything will be at the same level it was before, so all you'll really have accomplished is the destruction of what could have been truly productive action!"

The professor put down his bucket and replied with a smile,

"Congratulations. You now understand the stimulus bill."

*

from Peggy's blog HERE

My Note: This analogy demonstrates futility, but in my opinion doesn't go far enough to explain the stimulus package. The water in the pool has to come from somewhere: it is depleting the reservoir that is necessary for indoor plumbing: the drinking water, the showers, washing the clothing, whatever. The area will become a desert while that pool fills with water.

This stimulus package is taking money from our grandchildren that THEY will have to repay. I'm sorry; I am not an economist, but I know enough not to run my own household the way the stimilus bill seems to be doing, which is to borrow more money than you can ever dream of making. In one stroke of the pen, the national debt has been tripled.

Where is the stimulus in this?

3 comments:

Jessica Thomas said...

It's hard to imagine our "leaders" could be so blind. One thing I do not understand is, Obama is a Christian, so should understand the concept of good stewardship. The stimulus bill is so contrary to the Bible's teachings about money. Who needs the Bible, right? It's just some old dusty book. Funny how applying its wisdom leads to financial and spiritual freedom, though. All I can do is laugh at this point.

I'm not yet worried that our children and grandchildren will be footing this bill. I don't believe all the money will be spent. There are still some reasonable people in Congress who will fight the nuances of this bill tooth and nail. In time, it will be proven ineffective, and I think it will self-implode. At which point, hopefully, some of the damage can be undone.

The other thing...there are plenty of resources in this world for everyone. We are not "running out" of money. There is money to be had, and it will be distributed eventually, so long as we can keep some semblance of a free market.

We will pay for our sins in one way or another, that is certain. I'm still hopeful, however, that it will not be in the form of catastrophe, as our nation's leader so eloquently put it the other day. (That comment sure filled me with "hope", how 'bout you?)

Billy Coffey said...

This post should be mandatory reading for every politician in Washington, regardless of the fact that none of them would likely understand it.

Andra M. said...

Good question. Unfortunately no one (or at least not enough) in congress even read the bill let alone use sound economic principals to draft the darned thing.