A Description of How the Stimulus Package Works

There is a description of the stimulus package that has been making its way around the Internet recently.  Below you can find the story teaching people how the stimulus package works.

The lesson is posted here on Libertylog.org's website.  Below is an excerpt from the story.

No one produced anything. No one earned anything. However, the whole town now thinks that they are out of debt and there is a false atmosphere of optimism and glee.

Do you think this story accurately depicts how the stimulus package works?