Bar Stool Economics

Date: 26-12-2009 9:57 am (15 years ago) | Author: Sheenor
- at 26-12-2009 09:57 AM (15 years ago)
(m)
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 bar, the
> men began to
> compare their savings.
>
> "I only got a Euro 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 Euro,
> too. It's unfair that he got ten times more than I did!"
>
> "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 20% tax reduction. Tax them too much,
> attack them
> for being wealthy, and they just may not show up any more.
> In fact, they
> might start drinking overseas.
>
> For those who understand, no explanation is needed.
> For those who do not understand, no explanation is
> possible.


Posted: at 26-12-2009 09:57 AM (15 years ago) | Hero
- xter at 26-12-2009 10:00 AM (15 years ago)
(m)
too long oooh

Posted: at 26-12-2009 10:00 AM (15 years ago) | Addicted Hero
Reply
- Andes at 27-12-2009 08:07 AM (15 years ago)
(m)
Very ingenous..
Nice one there.
Posted: at 27-12-2009 08:07 AM (15 years ago) | Upcoming
Reply
- shantybaby97 at 27-12-2009 11:00 AM (15 years ago)
(f)
too long poster
Posted: at 27-12-2009 11:00 AM (15 years ago) | Upcoming
Reply
- Toks-E at 27-12-2009 12:42 PM (15 years ago)
(m)
wow...very long sha

Posted: at 27-12-2009 12:42 PM (15 years ago) | Addicted Hero
Reply
- KleverC at 27-12-2009 03:40 PM (15 years ago)
(m)
go education forum

Posted: at 27-12-2009 03:40 PM (15 years ago) | Gistmaniac
Reply
- coolguys235 at 27-12-2009 04:39 PM (15 years ago)
(m)
this is cool Grin Grin

Posted: at 27-12-2009 04:39 PM (15 years ago) | Hero
Reply
- adedupcy at 27-12-2009 07:31 PM (15 years ago)
(f)
i no fit read ohh,sha u try Tongue
Posted: at 27-12-2009 07:31 PM (15 years ago) | Gistmaniac
Reply
- KleverC at 27-12-2009 07:34 PM (15 years ago)
(m)
maybe im try

Posted: at 27-12-2009 07:34 PM (15 years ago) | Gistmaniac
Reply
- adedupcy at 27-12-2009 07:41 PM (15 years ago)
(f)
  Tongue
Posted: at 27-12-2009 07:41 PM (15 years ago) | Gistmaniac
Reply
- KleverC at 27-12-2009 07:42 PM (15 years ago)
(m)
 Cool

Posted: at 27-12-2009 07:42 PM (15 years ago) | Gistmaniac
Reply

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