Bar Stool Economics

The following is raised by David R. Kamerschen, a Ph.D. Professor of Economics from the University of Georgia. It has been around the internet for some time but deserves to be read time and time again.

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.

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

I love this explanation. It should become a campaign poster. This economic mess is going to make the people scream worse when the jobs really start to end. You think it's bad now? Have you read - honestly read and examined - what Barack Hussein Obama wants to do? His latest musings concerning 401k's is that instead of having pre-tax money go toward your 401k, the money will be taxed first and then go toward your 401k.

Just remember people, the wealthier folks have the ability to take their money elsewhere, and probably will. And the more people are taxed, the less that is given toward charity. Those who are connected to churches should remember that!

The poor in this country are not like the poor from the 1930’s. Back then, they had survival skills. Now they only know how to hold their hands out, and many won't survive. And the people the elites insult and make fun of - the gun-owners, the Christians, those living in fly-over country, will be the ones who will not only survive, but everyone else will depend on.

It's sad how they've allowed themselves to be indoctrinated that they're owed a living because they're “disadvantaged”. They don't know how to do without. It's gonna get ugly.

The Truth About Fannie Mae and Freddie Mac

Democrats Covering up the Fannie Mae, Freddie Mac and Economic Crisis

http://www.youtube.com/watch?v=_MGT_cSi7Rs

http://www.youtube.com/watch?v=3p1Wc2NFa3w

MORE WARNINGS TO DEMS who actually BLOCKED REPUBLICAN ATTEMPTS TO FIX THE MESS IN 2004 AND 2006

EVEN BEFORE THE HOUSING MARKET TANKED, MCCAIN SPONSORED A BILL TO TRY TO FIX FANNIE MAE AND FREDDIE MAC. DEMOCRATS CONTROLLED CONGRESS AND KILLED IT!

Americans everywhere had better quickly come to terms with the fact that the Democrats and their media propaganda machines are anti-American terrorist sympathizers who want America destroyed. They have so completely deceived the public with their Goebbles-style media propaganda machine that misguided “useful idiots” are attacking Republicans the same way that the brown shirts attacked the jews.

THERE IS A TOTAL MEDIA BLACKOUT ON DEMOCRAT TERRORIST ACTIVITIES!

THE BARAK OBAMA - DIRECT CONNECTION TO THE SCANDAL!

http://www.youtube.com/watch?v=AiEWCnpNnBQ

The Story the Democrat Media Propaganda Machine is hiding! The story that EVERYONE IN AMERICA should know!

SEND THESE LINKS TO EVERY PERSON IN AMERICA!
SEND THESE LINKS TO EVERY PERSON IN AMERICA!

If you actually take the time to do the research you will quickly learn that the Democrats want to “tax” oil and gas companies, and push their “green agenda” as a means to control energy. By controlling energy they can then control the means of production. Or put in plain English they can bring America FULLY into Communism. The shrieks for health care reform are related to regulating the medical industry to FORCE them into supporting abortion. The Democrats are nothing but fascists, they do NOT believe in Democracy or they wouldn't routinely take such unpopular stances against the public!

THE MAJOR MEDIA IS NOTHING BUT THE DEMOCRAT PROPAGANDA ARM. EXCEPT FOR FOX NEWS THEY WILL NEVER REPORT THIS. THEY ARE ACTIVELY HIDING IT AND COVERING IT UP! GET THE WORD OUT! SEND THIS INFORMATION TO EVERYONE YOU KNOW IN THE COUNTRY, EVERYTHING THEY THINK THEY KNOW ABOUT DEMOCRATS AND REPUBLICANS IS A BIG LIE! A BIG LIE SPONSORED BY THE DEMOCRAT MEDIA PROPAGANDA MACHINE!