Tuesday, April 14, 2009

A Stimulating Example

Three contractors are bidding to fix a broken fence at the WhiteHouse.

One is from Chicago , another is from Tennessee , and the third is from Minnesota .

All three go with a White House official to examine the fence. TheMinnesota contractor takes out a tape measure and does some measuring,then works some figures with a pencil. "Well," he says, "I figure thejob will run about $900: $400 for materials, $400 for my crew, and $100 profit for me."

The Tennessee contractor also does some measuring and figuring, thensays, "I can do this job for $700: $300 for materials, $300 for my crew, and $100 profit for me."

The Chicago contractor doesn't measure or figure, but leans over tothe White House official and whispers, "$2,700."

The official says, "You didn't even measure like theother guys! How did you come up with such a high figure?"The Chicago contractor whispers back, "$1000 for me, $1000 for you,and we hire the guy from Tennessee to fix the fence.""Done!" replies the government official.

And that, my friends, is how the new stimulus plan will work.

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