Are Strip Bars Causing A Recession?
NPR reports that since 2001 banks have been ordering more $2 bills. Last year they ordered $122m worth. One of the reasons given: strip bars like to make change in $2 bills because it leads to higher tips for dancers and bartenders.
Now I am not an economist, but one of the things that I remember from high school economics is that as money in circulation increases, inflation increases. As inflation increases the Fed does nasty things like raise interest rates. When interest rates raise then home loans become more expensive. This leads to a decrease in housing construction and a cooling in the housing market. If the housing market cools the entire economy slows, and we slip into recession. QED.
Combat this trend! Help keep the American economy going strong! Tip dancers no more than a $1 at the stage and pay no more than $20 for a lapdance (This also helps the poorer among us afford quality adult entertainment).
tags: Economics, Humor, NPR, Strip+Bars, Lapdances,
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November 6th, 2006 at 2:01 pm
I’m not sure that the larger bills would necessarily add to the overall amount of currency circulating. It only has the effect of reducing how much currency circulates in your bank account. If the Fed was printing the same number of bills except $2 bills instead of $1, then you could make an economic argument for this, but as long as they are maintaining their monetary controls, then it’d be like trying to argue that the ATMs in Las Vegas that pay $100 bills are adding currency to the economy. In truth they are just moving it from your pocket to the craps table.
November 6th, 2006 at 6:01 pm
You are of course correct, I was just trying to keep the price of lapdances down
November 6th, 2006 at 10:37 pm
How many Sacagawea dollars can you tip before they throw you out of the club?
November 7th, 2006 at 6:28 am
You obviously have never been to the phillipines for a peso show or you wouldn’t ask that question.
November 21st, 2006 at 4:13 pm
[…] on11-21-2006 17:57 From66.92.205.68.cfl.res.rr.com don’t get too heated over this one.
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