A Lesson in Practical Economics

A truck driver moved to Texas and bought a donkey from an old farmer for $100. The farmer agreed to deliver the donkey the next day. The next day the farmer drove up and said, “Sorry, but I have some bad news. The donkey died.”
“Well, then, just give me my money back.”
“Can’t do that. I went and spent it already.”
“OK, then. Just unload the donkey.”
“What ya gonna do with him?”
“I’m going to raffle him off.”
“You can’t raffle off a dead donkey!”
“Sure I can. Watch me. I just won’t tell anybody he’s dead.”
A month later the farmer met up with the truck driver and asked, “What happened with that dead donkey?”
“I raffled him off. I sold 500 tickets at two dollars apiece and I made a profit of $898.”
“Didn’t anyone complain?”
“Sure, but just the guy who won. So I gave him back his two dollars.”

And that’s it.An extremely simple story, but there’s something about this that just seizes my imagination. Look at it…the guy who sold the donkey lost nothing;the guy who bought it made $898;the guy who won lost nothing; the guys who bought the raffle tickets satisfied their gambling appetite, and lost no more that they would anyway have lost. Everyone comes tops. Wow.Now that’s economics.

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