Sunday, June 14, 2009

Economic Recovery

I found an interesting tale on the Internet. It had a European flavor so I changed a few details and embellished the story a bit.

There is a small town in Ohio where the recession has hit particularly hard. The local factory had closed. Few are working and everybody is in debt.

An out-of-towner driving through the town sees Harriet's Antique shop and stops. He sees a 1950's era Wurlitzer jukebox and asks Harriet how much it costs. Harriet says it's in perfectly working condition and the price is $20,000. The man winces a bit but really wants it. He sighs and agrees and writes a $20,000 check.

Harriet cashes the check and pays her landlord, Hank $10,000 in back rent she owed. She also pays 5 other people she owed money to a total of $5000. Then Hank pays the local restaurateur, Ellen the entire $10,000 and squares away his debt.

Ellen, with much of the town out of debt, does very good business that week at her restaurant. She does so well that she is able to pay Harriet, the $20,000 she owed in antiques decorations for her restaurant.

At the end of that week, the out-of-towner returns to the antique shop and says his wife won't let him keep the Wurlitzer. Harriet returns the $20,000.

There was no profit or income.

But everyone no longer has any debt and the small townspeople look optimistically towards their future.

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