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Barstool economics

Discussion in 'Members' Lounge' started by eg6sir, Oct 28, 2008.

  1. eg6sir

    eg6sir Supa Mod Moderator VIP

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    got this in an email




    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 me!' '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

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

    E_SolSi Member of the 20 nut club Moderator VIP

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    these emails have been going around since clinton
     
  3. eg6sir

    eg6sir Supa Mod Moderator VIP

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    i wouldnt doubt it..
     
  4. Briansol

    Briansol Admins Admin VIP

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    being the 10th man sucks :(
     
  5. TurboMirage

    TurboMirage YEEAAAHHH VIP

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    x2 :(
     
  6. BigJ

    BigJ I'm just about that action Boss. VIP

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    My professor was actually at georgia for years for strategic management. He uses this same thing all the time, but for businesses.
     
  7. reikoshea

    reikoshea HS Troll...And Mod Moderator VIP

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    im only the nineth man right now...im sure by the time im 28 ill be the tenth man.

    happiness and dread.
     
  8. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    One of my professor's voted for Bush twice and was proud of both decisions. Discredited the profession for me a little bit.
     
  9. reikoshea

    reikoshea HS Troll...And Mod Moderator VIP

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    I couldnt vote for al gore the first time (not like it would of mattered in texas). The second time i just kept thinking "Is this the best person the democrats could come up with....REALLY!?" and voted for george bush...again, not like it mattered in tx.
     
  10. BigJ

    BigJ I'm just about that action Boss. VIP

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  11. UNDR8D

    UNDR8D ...has a job!

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    Obviously you are referring to him being beaten.

    How so?
     
  12. eg6sir

    eg6sir Supa Mod Moderator VIP

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    i think because the more you make, the more you pay
     
  13. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    I should clarify, this was my favorite professor who I agreed with on everything except this. He agreed with cutting taxes and spending money like it was going to go bad. He didn't believe we were in a recession, just a "down trend". IDK, I couldn't vote the first time and the second time I voted for the lesser of two evils. Seriously though, this will be my second time voting for president. Can I get a candidate that I actually feel good about voting for? Seriously.
     
  14. Briansol

    Briansol Admins Admin VIP

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    probably not until 2038
     
  15. nootrac22

    nootrac22 Well-Known Member VIP

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    planning your campain already are you?:rolleyes:
     
  16. Briansol

    Briansol Admins Admin VIP

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    the year is wrong...

    [​IMG]
     
  17. eg6sir

    eg6sir Supa Mod Moderator VIP

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    haha.. good one
     
  18. Briansol

    Briansol Admins Admin VIP

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    should be 2028 or something else more reasonable. 2058 will make me 78. lol screw that, i'll be dead.
     
  19. UNDR8D

    UNDR8D ...has a job!

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    no you'll be mccain
     
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  20. UNDR8D

    UNDR8D ...has a job!

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    Ya, but, you make more. I don't know about you but I'd rather make 5 million a year and pay 2 million in taxes than make $40,000 a year and pay nothing...
     
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