Wednesday, February 10, 2021
  Cute paradox

Seen on Quora....
There is a very poor quaint little town where everyone is in a huge debt with someone but with no money to pay for it. There is a hotel which is hardly seeing any business anymore. They are to soon shut it down. One day a very wealthy American guest shows up and he wants to spend a night there. However before he confirms he asks for a tour of the hotel. The receptionist asks for a security deposit which the American can take back in case he an take back in case he doesn’t like the rooms. The guest obliges.

It turns out by matter of luck this is the exact amount that the hotel owed to the chef as salary for three months which they hadn’t been able to pay. They gave the cash to the chef.

The chef saw that this was the exact amount of cash he owed the grocer for months of groceries he hadn’t been able to pay for. He paid the grocer.

The grocer realized it was the exact amount he owed the doctor for treating his wife’s arthritis.

The nurse was new to the town so she had been staying in the hotel for a few days before she found a house to rent. She too was poor and couldn’t pay the hotel at that time. The money she received from the doctor was exactly what she owed the hotel so she paid.

Now the hotel had got back the exact amount it had paid the chef. Now the guest has finished his tour of the rooms. Turns out he doesn’t like it. He takes back his security deposit from the hotel and leaves, never to be seen again.

So everyone's debt has been paid, but nothing is different from before.

No one has earned anything. But now everyone is happy.

Did the debt really exist at all?
A well-written story and a clever paradox.

This took some thinking.

At one level it's just wildly unlikely. In a small town you could have a closed loop of payments, but there's zero probability that all payments are the same amount.

Wildly unlikely isn't the real problem.

In real life the loop fails for the same reason that perpetual motion machines fail.

Every transaction has friction.

If the scene is old-fashioned, all the payments are made by gold, delivered on foot. Each payer has used some of his time and food energy and shoe leather, and risked being hit by a buggy or robbed by a pickpocket. Those losses and risks aren't recirculated or regained.

If the scene is modern, the payments are made by check or debit card or Paypal. Each payment incurs a fee by the bank or Paypal. After all the payments are made, each of the payers has lost about 5% of the amount, and this loss is not recirculated or regained.

So, after each complete loop everyone is poorer than before and MORE IN DEBT than before.

= = = = =

Later thought: Every living thing and every economy needs an input, an increase of value at some point in the loop, to overbalance the inevitable friction. For small towns the input was usually the annual growth of crops and livestock, or a specialized industry that sold high value products (wine, cheese, silverware) to the outside world. Before globalism, tiny towns could survive with a smaller amount of external input and a larger amount of internal looping, because the friction was paid to the local bank. When you're paying check fees or loan interest to the city bank, the friction losses DO recirculate. The banking side of Deepstate has been steadily eroding local banks since 1929, and the newer digital payment schemes are the final hammerblow.

More trust also means less friction. In a tight ethnic community with strong family ties, payment can be more abstract, requiring less transfer of gold or paper, less action by the bank. You can run up a tab in most stores and pay when your crop comes in. Deepstate has been obliterating trust since 1946.

Labels: ,

 


<< Home

blogger hit counter
My Photo
Name:
Location: Spokane

The current icon shows Polistra using a Personal Equation Machine.

My graphics products:

Free stuff at ShareCG

And some leftovers here.

ARCHIVES
March 2005 / April 2005 / May 2005 / June 2005 / July 2005 / August 2005 / September 2005 / October 2005 / November 2005 / December 2005 / January 2006 / February 2006 / March 2006 / April 2006 / May 2006 / June 2006 / July 2006 / August 2006 / September 2006 / October 2006 / November 2006 / December 2006 / January 2007 / February 2007 / March 2007 / April 2007 / May 2007 / June 2007 / July 2007 / August 2007 / September 2007 / October 2007 / November 2007 / December 2007 / January 2008 / February 2008 / March 2008 / April 2008 / May 2008 / June 2008 / July 2008 / August 2008 / September 2008 / October 2008 / November 2008 / December 2008 / January 2009 / February 2009 / March 2009 / April 2009 / May 2009 / June 2009 / July 2009 / August 2009 / September 2009 / October 2009 / November 2009 / December 2009 / January 2010 / February 2010 / March 2010 / April 2010 / May 2010 / June 2010 / July 2010 / August 2010 / September 2010 / October 2010 / November 2010 / December 2010 / January 2011 / February 2011 / March 2011 / April 2011 / May 2011 / June 2011 / July 2011 / August 2011 / September 2011 / October 2011 / November 2011 / December 2011 / January 2012 / February 2012 / March 2012 / April 2012 / May 2012 / June 2012 / July 2012 / August 2012 / September 2012 / October 2012 / November 2012 / December 2012 / January 2013 / February 2013 / March 2013 / April 2013 / May 2013 / June 2013 / July 2013 / August 2013 / September 2013 / October 2013 / November 2013 / December 2013 / January 2014 / February 2014 / March 2014 / April 2014 / May 2014 / June 2014 / July 2014 / August 2014 / September 2014 / October 2014 / November 2014 / December 2014 / January 2015 / February 2015 / March 2015 / April 2015 / May 2015 / June 2015 / July 2015 / August 2015 / September 2015 / October 2015 / November 2015 / December 2015 / January 2016 / February 2016 / March 2016 / April 2016 / May 2016 / June 2016 / July 2016 / August 2016 / September 2016 / October 2016 / November 2016 / December 2016 / January 2017 / February 2017 / March 2017 / April 2017 / May 2017 / June 2017 / July 2017 / August 2017 / September 2017 / October 2017 / November 2017 / December 2017 / January 2018 / February 2018 / March 2018 / April 2018 / May 2018 / June 2018 / July 2018 / August 2018 / September 2018 / October 2018 / November 2018 / December 2018 / January 2019 / February 2019 / March 2019 / April 2019 / May 2019 / June 2019 / July 2019 / August 2019 / September 2019 / October 2019 / November 2019 / December 2019 / January 2020 / February 2020 / March 2020 / April 2020 / May 2020 / June 2020 / July 2020 / August 2020 / September 2020 / October 2020 / November 2020 / December 2020 / January 2021 / February 2021 / March 2021 / April 2021 /


Major tags or subjects:

Carbon Cult
Carver
Constants and variables
Defensible Cases
Defensible Times
Defensible Thymes
Defensible Spaces
Equipoise
Experiential education
From rights to duties
Grand Blueprint
Metrology
Morsenet of Things
Natural law = Sharia law
Natural law = Soviet law
Shared Lie
Skill-estate
Trinity House

Powered by Blogger