Wednesday, 10 September 2008

Beer Economics, to My Ninth Degree

My associate, Steve, sent me this simplified tax concept:

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 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, 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, or 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.

Mr. David R. Kamerschen (PhD) of University of Georgia wrote the concept. I sat and pondered it long and hard....and then came to my own concept.

Take the same concept, except remove the richest guy in the group automatically. He talked a senator into writing legislation that exempts him ever paying for any beer ever. The senator was given 1,000 cases of beer in exchange for his special tax code. Of special note here....all of the beer that either the rich guy or the senator foreign beer....which is exempted from any taxes anyway.

At some point at the bar.....three newspaper and channel nine newsmen arrive and talk up how things are screwed up and how beer ought to cost less for everyone. For hours and days....the nine guys sit around and discuss this matter....even though the four guys on minimum wage and getting free beer....really don't understand why all this chat is necessary, because they already enjoy the brews they are served.

Finally, at some point, a Baptist minister shows up in town and convinces everyone that things would be better if the county was "dry", and thus making beer a forgotten subject for everyone.

Off the Hook for the Atom-Smasher?

Did I make it....surviving the atom-smasher being turned?

Curious thing....all the boys did....which the press never explained till today....was turn the smasher one direction. Tomorrow....they reverse it and let the flow go the other direction. It has yet to strike another atom.

Thats about two or three weeks away....although most of you think its completely safe and the whole thing is over. Its not. So keep worrying.

Rouge Cou?

At some early point in Sarah Palin's career as a business woman (which was kinda short-lived)....she opened up a company called Rouge Cou. Its French and flashy. I was kinda surprised upon rolling the word around left and right....and thinking it sure is kinda nice and Frenchy. And you what? It stands for redneck. Yep.....redneck.

For several minutes I thought about this. Growing in Bama....feeling always slighted by non-southerners and often wanting to proudly proclaim myself a redneck in public but I just couldn't do it.

And now?

You know.....I could be a rouge cou. I feel a trend here....a movement in life. I could be flashy and very different....calling myself a rouge cou. It could improve my character, and maybe my wit. And all thanks to those wonderful French fellows who sip wine and drive cheap cars.

Farmers Almanac

In 1782, a couple of guys got together and wrote up the Farmer's Almanac. It has been a continuously published Almanac that people actually read and believe in. This year, the Almanac went out and said an interesting thing.

Basically....they said that global cooling is now the trend. Here's the amusing thing...they back up their predication with data.

They have a fairly decent study of solar activity and corresponding records on ocean temperatures and climate....and this points toward a long period of cooling....they even suggest 50 years.

So, we have a rather odd source to challenge global warming....a group of non-scientist who actually collect data....and forbid models on computers. As far as the Almanac is concerned....its true data or nothing. Even you even suggested bringing in some type of model.....they'd probably chase you out of the front yard.

Who reads the document? Eighteen million Americans. Its considered so accurate that copies in World War II were safeguarded because of the potential that the Germans might get their hands on the document.

So, should we worry here? The curious thing is that they refuse model interpretation via computers. They look at sun activity, which most NASA scientists now refuse to use....although they will not allow themselves to be drawn into discussions on this in public forums....such as TV or radio. Its a curious thing. I'm suspecting that the farmer dudes just be more right....than the scientists.