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Barstool Economics

This came across my desk today, and I found it interesting, so I thought that I'd share it...

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 no w paid $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

So I go to vote this morning and I'm standing in the booth trying to make up my mind... It's almost a toss-up for me...

I want to vote for Obama.

I don't know if I can elect a guy who's middle name is Hussein...

Then it comes to me.

I hear the soundbyte from Monday Night Football...

John McCain wants to eliminate Performance Enhancing Drugs... Who Cares?

Barack Obama, now that's a president. With the Nittany Lions having been leapfrogged by Texas Tech in the BCS Standings, this guy hears the voices of millions of americans and proposes a solution. A college Football Playoff System of Eight Teams.

Without hesitation, I flick the lever. Obama for President. Joe Pa needs a Title.

Just Vote.

Make a Difference - VOTE!

Please get out and vote.
Either way. Republican or Democrat. Just Vote. Or Don't.

Make a difference....
Vote.

Notice to all Employees

Notice to All Employees

As of November 5, 2008, when President Obama is officially elected into office, our company will instill a few new policies which are in keeping with his new, inspiring issues of change and fairness:

1. All salespeople will be pooling their sales and bonuses into a common pool that will be divided equally between all of you. This will serve to give those of you who are underachieving a "fair shake."

2. All low level workers will be pooling their wages, including overtime, into a common pool, dividing it equally amongst yourselves. This will help those who are "too busy for overtime" to reap the rewards from those who have more spare time and can work extra hours.

3. All top management will now be referred to as "the government." We will not participate in this "pooling" experience because the law doesn't apply to us.

4. The "government" will give eloquent speeches to all employees every week, encouraging it's workers to continue to work hard "for the good of all."

5. The employees will be thrilled with these new policies because it's "good to spread the wealth." Those of you who have underachieved will finally get an opportunity; those of you who have worked hard and had success will feel more "patriotic."


6. The last few people who were hired should clean out their desks. Don't feel bad, though, because President Obama will give you free healthcare, free handouts, free oil for heating your home, free foodstamps, and he'll let you stay in your home for as long as you want even if you can't pay your mortgage. If you appeal directly to our democratic congress, you might even get a free flatscreen TV and a coupon for free haircuts (shouldn't all Americans be entitled to nice looking hair?)

Whether you agree with these policies or not, get out and vote on November 5th. If for no other reason, vote because thousands of people have given their lives for the right, and we all owe it to those people to respect their memory.