Obamanomics made simple.

dukdiv

OTF status
May 23, 2008
221
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0
San Diego
www.myspace.com
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
 

Lankameese

Billy Hamilton status
Sep 26, 2006
1,740
0
0
<img src="/forum/images/graemlins/cheers.gif" alt="" />

David R. Kamerschen, Ph.D.
does he have one titled "Bar Stool Immigration?"
 

Landloct

Kelly Slater status
Jul 18, 2002
9,371
12
38
<img src="/forum/images/graemlins/cheers.gif" alt="" />

David R. Kamerschen, Ph.D.
does he have one titled "Bar Stool Immigration?"
No, but on a related topic he did figure out a way to attract four times as many Republicans to local bars during the RNC.

He told the bar owners to just turn their barstools upside down <img src="/forum/images/graemlins/village idiot.gif" alt="" />
 

misterhat

Billy Hamilton status
Dec 21, 2007
1,625
69
48
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
You and anyone who likes this quote is absolutely clueless about the founding principals of our country. I've made the same post why taxes are not comparable to going out to this dinner analogy countless number of times.

The way our tax system works is analogous to people paying for what they eat.
 

Lankameese

Billy Hamilton status
Sep 26, 2006
1,740
0
0
<img src="/forum/images/graemlins/cheers.gif" alt="" />

David R. Kamerschen, Ph.D.
does he have one titled "Bar Stool Immigration?"
No, but on a related topic he did figure out a way to attract four times as many Republicans to local bars during the RNC.

He told the bar owners to just turn their barstools upside down <img src="/forum/images/graemlins/village idiot.gif" alt="" />
<img src="/forum/images/graemlins/bawling.gif" alt="" />
 

Waterzedge

Nep status
Aug 16, 2008
875
0
0
Toilet bound Stool <img src="/forum/images/graemlins/toilet.gif" alt="" /> McCain/Bush/Republican Economics:

 

jp

Sep 19, 2003
16
0
1
sd
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
the guy given credit for writing this says that he did not. <img src="/forum/images/graemlins/foreheadslap.gif" alt="" />