Solution to the Debt Crisis

This cool math problem illustrates why government spending can actually reduce the debt. It is a good model for why when taxes and government spending go up, unemployment and debt goes down.

1. A tourist stops at a small hotel, puts a $100 bill on the counter, and goes to inspect a room. 
2. The owner takes the bill and rushes off to pay the butcher, to whom he owes $100. 
3. The butcher races to his wholesaler and pays off his own $100 debt. 
4. The wholesaler hurries to the farmer and gives him $100 for the pigs he bought. 
5. The farmer hands over $100 to the party planner who set up his bachelor bash. 
6. The party planner heads to the hotel to pay the $100 she owes for the party room and lays the bill on the counter. 
7. At that point, the tourist returns to the front desk, says that the room is unsatisfactory, picks up the $100, and departs. The tourist has his money back, and everyone else is $100 ahead by reducing his or her debt by that amount.