Go Back   Great Lakes 4x4. The largest offroad forum in the Midwest > General 4x4 Stuff > Politics, Government, or Religion Chat
GL4x4 Live! GL4x4 Casino

Politics, Government, or Religion Chat Bring your flamesuit!







Search
Reply
 
Thread Tools
Old October 30th, 2008, 07:37 AM   #1
dreezy
Haggard Fab
 
dreezy's Avatar
 
Join Date: 03-28-08
Location: Holland Mi
Posts: 9,905
iTrader: (7)
Mentioned: 15 Post(s)
Send a message via AIM to dreezy Send a message via MSN to dreezy
Default Barstool economics

BAR STOOL ECONOMICS



Suppose that every day, ten men go out for beer and the bill for all ten
comes to $100.

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.

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, boys and girls, 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

For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible


Now add Obama’s tax plan. Charge #10 more and let the first five go home with money in their pocket. The question is not “should we redistribute the wealth”. That fact is already in existence. The question should be “when have we gone too far with the redistribution which reduces the drive of #10 to want to continue to take part.” Obviously the think we have some way to go before that point.
dreezy is offline   Reply With Quote
Old October 30th, 2008, 11:35 AM   #2
gehtowheeler
what dreams are made of
 
gehtowheeler's Avatar
 
Join Date: 05-03-07
Location: davison
Posts: 468
iTrader: (0)
Mentioned: 0 Post(s)
Send a message via AIM to gehtowheeler
Default

nice
gehtowheeler is offline   Reply With Quote
Old October 30th, 2008, 12:03 PM   #3
WSU JK
Senior Member
 
WSU JK's Avatar
 
Join Date: 04-25-08
Location: Lowering the Per-Capita Income of Bloomfield Hills since 2009!
Posts: 2,543
iTrader: (4)
Mentioned: 1 Post(s)
Default

Quote:
Contrary to Internet folklore, Dr. Kamerschen is NOT the author of "Tax Cuts: A Simple Lesson in Economics" or “Bar Stool Economics” or anything similar to that. Additionally, he does NOT know who wrote it and he has no opinion on its merits.
http://davidk.myweb.uga.edu/
WSU JK is offline   Reply With Quote
Old October 30th, 2008, 12:18 PM   #4
ovrlnd
HURL SCOUTS
 
ovrlnd's Avatar
 
Join Date: 03-23-07
Location: Westland, Michigan
Posts: 10,003
iTrader: (14)
Mentioned: 0 Post(s)
Send a message via AIM to ovrlnd
Default

more lies. obama knows what is best for everyone. NOT
ovrlnd is online now   Reply With Quote
Old October 30th, 2008, 04:47 PM   #5
Chiefwoohaw
Pokerob is my B*tch!
 
Chiefwoohaw's Avatar
 
Join Date: 11-06-05
Location: Cincinnati, OH
Posts: 11,505
iTrader: (7)
Mentioned: 0 Post(s)
Default

I wonder where the rich guy is drinking now?
Chiefwoohaw is offline   Reply With Quote
Reply
Great Lakes 4x4. The largest offroad forum in the Midwest > General 4x4 Stuff > Politics, Government, or Religion Chat
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump



All times are GMT -5. The time now is 10:31 PM.


Powered by: vBulletin, Copyright ©2000 - 2012, Jelsoft Enterprises Ltd.
User Alert System provided by Advanced User Tagging (Lite) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd. Runs best on HiVelocity Hosting.
Copyright ©2005 - 2012 Cracker Enterprises - Powered by Linux
vB Ad Management by =RedTyger=
Page generated in 0.10104 seconds with 22 queries