In the USA, the coronavirus has almost stopped the economy. The demand for gasoline is low because many automobiles stay in the garage. And in many locations, the price of gasoline is less than $1.00! Many businesses that have stayed open are not profitable.

At this time for most people life is not easy. Many people living on credit and have very large debts. Thus the US government is sending a stimulus check worth as much as $1200 per person to each citizen. How will the stimulus package help the economy?

A man in search for work is driving his camper van from California to Texas. It is late in the day and it is time to stop for the night. At the outskirts of a small town in New Mexico, the man stops at a RV park. He tells the RV park owner that he wants space for the night. But he tells the RV park owner before he pays for the space that he wants to see it. The RV park owner agrees and asks the man to give him a deposit of $100.

The man gives the RV park owner $100 and goes to see the space. When the man drives away to see the space, the RV park owner walks across the street to pay his $100 grocery bill. Then the owner of the grocery store drives to the other side of town and pays the farmer $100 for the produce that was delivered in the morning. Next the farmer gives the local gas station owner $100 for the tractor fuel used to harvest the produce. The gas station owner rents a space at the RV park and owes the RV park owner $100. He gives the $100 to the RV park owner.

At that moment the man returns and says that he does not want the space. So, the RV park owner returns the $100 to the man. He then drives away.

No one produced anything. No one earned anything. But now, no one in town has any debt. Everybody is happy and is optimistic for the future.

And this is how a stimulus package works.