I came across this little story recently and wanted to share it. I don't know who the author is, or else I'd give them propert credit.
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 began to become 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."
Now, we don't have much control over how the government structures a stimulus bill, but I can picture this above story with many average Americans stuck in the middle of the pool treading water, and waiting for something to happen with the pool.
I think this is how many are dealing with the economy right now -- they're waiting for something to happen, waiting for someone to do something that will make it improve. You can see it in the stock market, you can see it in the housing market. There's a lot of unproductive doggy-paddling, as people just try to keep their heads above water.
But let me say this: There will be fortunes born in this economy. Recessions always bolster those who see opportunity in hard times and take advantage. Those are the ones who aren't waiting for anyone to fill up the pool; they are taking action and swimming.
If you think about it, it requires almost as much energy to tread water and go nowhere as it does to swim forward. Doesn't it make sense to use that energy productively, go somewhere and do something? Spend enough unproductive time treading water in one place, and eventually you're going to sink. I don't know about you, but if I'm going to sink, it's going to be while I'm swimming somewhere -- NOT while I'm treading water hoping somebody's going to move buckets of water around in some way that will help me.
Don't wait for help with your water. It's time to swim!
Rob Minton
