It is a dull, gloomy, and depressing morning in a town named Pumpelsdrop Northern England. All the businesses have come to a standstill because of the Great Depression. A bored automobile dealer was spending his time alone, as usual. There is an unusual event happened that morning though: a man in a bright suit approaches him. The visitor pays 10% at once with 2000 pounds worth of check. The rest he says will pay after he takes delivery of the car.
It looks like business is starting to turn around. We just heard that someone is holding a conference and someone bought a Rolls Royce. That's great news!
The owner of the shop called for a janitor to clean up the mess in his shop, had the decorator come in to spruce up his shop, and told his wife about the down-payment.
The jeweler was surprised that someone is buying a big diamond necklace for 1500 pounds. Checking the dealer, he found something new going on and realized it was time to replace his old clothes.
Thus, the spending chain began. The local entrepreneurs thought the Depression was ending and were starting to get back to their business. The out of work people were now put in business, and soon all hands were running busy. Eventually, other townspeople heard of the good news and in just 2 days, a virtuous spiral started as people brought out their savings and started consuming.
The check that the auto dealer got from the customer in the suit was returned and he listened to a radio report about a lunatic going around writing fake checks. But, his orders were so booked that he didn't need the order anymore. This triggered another cycle.
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