View Full Version : Bar Stool Economics

12-13-2007, 10:11 PM
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, 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

Is it a good thing that we do not get as much government as we pay for?

12-13-2007, 10:44 PM

But seems accurate :evil:

12-13-2007, 11:14 PM
That is not funny, it is true. It is amazing liberals can't understand it. Maybe they can with a simple illustration like that.......

12-14-2007, 02:26 AM
I was gonna stop and think about that scheme before my next beer; but awe heck, it's already open :drinking: :drinking: :drinking:

12-14-2007, 06:23 AM
What a great and accurate post.

Thanks for sharing it with us.

12-18-2007, 10:41 PM
Reasons why the English language is so hard to learn:

1) The bandage was wound around the wound.
2) The farm was used to produce produce.
3) The dump was so full that it had to refuse more refuse.
4) We must polish the Polish furniture.
5) He could lead if he would get the lead out.
6) The soldier decided to desert his dessert in the desert.
7) Since there is no time like the present, he thought it was time to present the present.
8) A bass was painted on the head of the bass drum.
9) When shot at, the dove dove into the bushes.
10) I did not object to the object.
11) The insurance was invalid for the invalid.
12) There was a row among the oarsmen about how to row.
13) They were too close to the door to close it.
14) The buck does funny things when the does are present.
15) A seamstress and a sewer fell down into a sewer line.
16) To help with planting, the farmer taught his sow to sow.
17) The wind was too strong to wind the sail.
18) After a number of injections my jaw got number.
19) Upon seeing the tear in the painting I shed a tear.
20) I had to subject the subject to a series of tests.
21) How can I intimate this to my most intimate friend?

There is no egg in eggplant nor ham in hamburger; neither apple nor pine in pineapple. English muffins weren't invented in England or French fries in France. Sweetmeats are candies while sweetbreads, which aren't sweet, are meat. Quicksand works slowly, boxing rings are square and a guinea pig is neither from Guinea nor is it a pig. And why is it that writers write but fingers don't fing, grocers don't groce and hammers don't ham?

If the plural of tooth is teeth, why isn't the plural of booth beeth? One goose, 2 geese. So one moose, 2 meese?

Doesn't it seem crazy that you can make amends but not one amend.

If you have a bunch of odds and ends and get rid of all but one of them, what do you call it ? Is it an odd, or an end?

If teachers taught, why didn't preachers praught?

If a vegetarian eats vegetables, what does a humanitarian eat?

In what language do people recite at a play and play at a recital?

Ship by truck and send cargo by ship?

Have noses that run and feet that smell?

How can a slim chance and a fat chance be the same, while a wise man and a wise guy are opposites?

You have to marvel at the unique lunacy of a language in which your house can burn up as it burns down, in which you fill in a form by filling it out, and in which, an alarm goes off by going on.

English was invented by people, not computers, and it reflects the creativity of the human race, which, of course, is not a race at all. That is why, when the stars are out, they are visible, but when the lights are out, they are invisible.

12-18-2007, 11:20 PM
This is what I had in mind when I asked my German friends if it was difficult to learn english.


Jerry Gaston
12-19-2007, 10:36 AM
And.... Did you know that 9 out of 10 chain smokers don't smoke chains.

12-19-2007, 10:41 AM
It would sure be interesting to watch the one out of ten that does!

Dennis Blankenbaker
12-19-2007, 03:44 PM
I have been trying to understand why we park our cars on drive ways and drive on parkways.
And is gasoline flammable or inflammable. :roll:

12-19-2007, 04:09 PM
History repeating itself


Do you know what happened back in 1850, 157 years ago?

California became a state.

The State had no electricity.

The State had no money.

Almost everyone spoke Spanish.

There were gunfights in the streets.

So basically, it was just like California is today, except the women had
real breasts and the men didn't hold hands

12-20-2007, 02:39 AM
Park in the.... Drive on the.... Do not forget: freeways are not free.