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Barstool Economics

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  • Barstool Economics

    I'm not sure if this has been posted on here before. I searched and didn't find anything. Figured the majority of the crowd here not only would understand but agree.

    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 on 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.
    2011 Mustang GT
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  • #2
    It's a worthy repost.

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    • #3
      I consider myself to be pretty conservative but I can see both sides of this.

      First I will say this. They need to quit spending so much damn money and lower everyones taxes. Also if you are receiving welfare, phones, etc, your ass needs to be reporting every day to do something, not just laying around the house waiting on your check.

      I said all that so I can say this without being set on fire I hope. Fuck all the loopholes and tax deductions. If I am taxed at 30 percent, some "poor bastard" that is making millions, can pay his god damn 30 percent. So what if it is like 9 million out of the 30 million he made. Yes he paid an ass load of taxes but I can promise you it will affect him way less than the 30 percent affects me. If he wants to give an assload of money after that to charity then good for him. Same goes for having kids. If you can not afford them don't have them. Fucking tax everyone the same rate and carry on. Get rid of most of the IRS and only go after people just not paying taxes at all. Or tax everyone at the register which would make everyone in this country a tax payer. Then you could almost do away with the IRS.

      Also fuck you if you want to move your business to another country. Take your ass over there and live, and the US needs to quit importing your shit. Lets see how good you do in another country. You made that money on Americans that pay their fair share of taxes and supported your bloated prices.
      Whos your Daddy?

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      • #4
        I'm still drunk, I ain't reading all that shit!

        God bless.
        It is easier to build strong children than to repair broken men -Frederick Douglass

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