Tuesday, June 28, 2011

Explaining The Federal Stimulus Plan

After class ended a young college student approached his economics professor and said, "Sir I don't understanding why the economic stimulus bill  passed by Congress a few years ago has not benefited our local community as expected. Can you explain why?"

"Sure, I’d love to, replied the professor but I don't have time right now; however if you will come to my house this evening after supper I'll be glad to explain why the federal stimulus bill has not worked and you can help me with a special project I am working on." 

Around 7PM the student arrived at the professor's home and was told by the professor’s wife to go around backyard. The Professor who was in the backyard near his pool raking leaves and saw his student and walk over. He greeted the young man and handed him a large plastic bucket. "Watch carefully said the Professor as I demonstrate what I would like you to do. First, go to the deep end of the pool and fill this bucket with water. Then bring the bucket back down here to the shallow end and empty it here in the pool.  Got it?"  The student nodded.

After three or four trips to the deep end with the bucket the student walked over to the professor and asked, "Sir, what are we trying to accomplish with this activity?" The professor replied 'we are trying to make the shallow end deeper".  Rather then question his professor the student went back and make a few more trips with his bucket.  Finally feeling frustrated he walked back to his professor's side and said "Sir I am sorry to say this but I believe we are wasting time." "What!" asked the professor - what are you talking about?

"Well Sir it seems to me that no matter how much water we take from the deep end and put in the shallow end the water levels at both ends of the pool are going to remain the same" 
The professor put down his rake, stood straight up, grabbed the student by his shoulders and said, "Congratulations. You now understand why the federal stimulus plan has not achieved the desired results it was suppose have in our local communities."

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