Bar Stool Economics!

1. Bar Stool Economics!

Bar Stool Economics

Suppose that every day, ten men go out for beer and the bill for all ten comes to \$100 and if they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay \$1.
The sixth would pay \$3.
The seventh would pay \$7.
The eighth would pay \$12.
The ninth would pay \$18.
The tenth man (the richest) would pay \$59.)

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by \$20." So drinks for the ten now cost just \$80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free...but what about the other six men - the paying customers? How could they divide the \$20 windfall so that everyone would get his 'fair share?'. They realized that \$20 divided by six is \$3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid \$2 instead of \$3 (33%savings).
The seventh now pay \$5 instead of \$7 (28%savings).
The eighth now paid \$9 instead of \$12 (25% savings).
The ninth now paid \$14 instead of \$18 (22% savings).
The tenth now paid \$49 instead of \$59 (16% savings).

Each of the six was better off than before...and the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

"I only got a dollar out of the \$20,"declared the sixth man. He pointed to the tenth man," but he got \$10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I!"

"That's true!!" shouted the seventh man. "Why should he get \$10 back when I got
only two? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, ladies and gentlemen, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

2. nuh uhh.. the poor are exploited in this country

3. The problem in this country is that the wealthy are not buying "beer" for anyone but themselves.

4. Some get it, some dont.

5. Originally Posted by Jimmyusa
Some get it, some dont.
You don't get it. You let rhetoric get in the way of logic.

6. Here's how it really is:

There is a big company CEO, a middle manager and a bus driver sitting at a table in a conference room. A secretary brings in a plate with a dozen cookies on it. The CEO takes eleven of the cookies and put them in front of himself. Then he leans over to the middle manager and whispers "That bastard bus driver wants to steal your cookie!"

7. Originally Posted by Zaphod
Here's how it really is:

There is a big company CEO, a middle manager and a bus driver sitting at a table in a conference room. A secretary brings in a plate with a dozen cookies on it. The CEO takes eleven of the cookies and put them in front of himself. Then he leans over to the middle manager and whispers "That bastard bus driver wants to steal your cookie!"
Maybe in some cases but contrary to popular belief not every big business CEO is a mega-million dollar per year crook either. Gary Kelly at SWA is good example of someone who gets along with and compensates 'labor' VERY well while taking a very modest compensation package himself.

8. Originally Posted by Jimmyusa
Some get it, some dont.
lol, ok sensei!

9. Originally Posted by Big Pimpin
Maybe in some cases but contrary to popular belief not every big business CEO is a mega-million dollar per year crook either. Gary Kelly at SWA is good example of someone who gets along with and compensates 'labor' VERY well while taking a very modest compensation package himself.
Exception, not the rule. Google is another one.

The problem isn't that terribly difficult to solve. 20% tax rate on all income, the standard deduction is fixed to what a person making minimum wage takes in annually on a 40hr work week. All loopholes and subsidies eliminated and all people taking welfare or food assistance are enrolled in the military. If we stop being the world police we could probably provide basic healthcare to everyone in the country. Here's why it won't work

1)The GOP won't stop waging wars.
2)The dems won't make people work for handouts.
3)The subsidies won't stop
4)20%- 17,600 deduction per year is essentially a tax hike on the people who pay to manipulate the system to their liking.
5)Every person in the country, whether they are a teabagger or freeloading welfare recipient have their hand out in some way.

10. Originally Posted by Zaphod
Here's how it really is:

There is a big company CEO, a middle manager and a bus driver sitting at a table in a conference room. A secretary brings in a plate with a dozen cookies on it. The CEO takes eleven of the cookies and put them in front of himself. Then he leans over to the middle manager and whispers "That bastard bus driver wants to steal your cookie!"

the CEO and middle manager spent lots of money and years of their lives getting very educated, working all throughout highschool and college and taking summer courses and interships to increase the chance of employment and promotion. the bus driver dropped out of highschool to do drugs and see if his garage band could make it.

11. Originally Posted by Standard Donkey
the CEO and middle manager spent lots of money and years of their lives getting very educated, working all throughout highschool and college and taking summer courses and interships to increase the chance of employment and promotion. the bus driver dropped out of highschool to do drugs and see if his garage band could make it.

You seem really good at making asinine statements.

12. Originally Posted by Kevin.
You seem really good at making asinine statements.
maybe i had it backwards? did the ceo and middle manager drop out of highschool and the bus driver work really hard?

13. Originally Posted by Standard Donkey
the CEO and middle manager spent lots of money and years of their lives getting very educated, working all throughout highschool and college and taking summer courses and interships to increase the chance of employment and promotion. the bus driver dropped out of college to do drugs and see if his garage computer business could make it.

Fixed.

14. Originally Posted by Zaphod
You don't get it. You let rhetoric get in the way of logic.