The chain reaction

"Hay Kevin, the economy is bad..." 

Step 1: A major video game company decided that they will not spend money on new games since fewer people are buying them, they cut the contract with a small Pasadena startup that develops the new games. 

Step 2: The startup subsequently laid off one of its writer. 

Step 3: The writer who lost his job has to let his nanny go and starts homeschooling. 

Step 4: The Nanny starts to cut his own hair and stops going to a Barber shop; 

Step 5: The Barber has fewer and fewer customers and stop dinning out as he previously did. 

Step 6: The restaurant has fewer patrons so the owner cut the hours of a waitress; 

Step 7: The waitress brings home less money and can't afford new video games for her kids. 

Step 8/1: Fewer people buying video games. 

The Trillion question is where should Obama give out his money to break this cycle? 

See the Los Angeles Times report: "One lay off leads to another".