OT: Bar Stool Economics

[patientrenter]

I enjoyed the post and the ripost in the form of a story. Very helpful. Thanks to you both.

One argument is that the wealthy 10th man is going to stop playing the game if he’s taxed too much. The other argument is that no one will stop playing the game because no one really has a choice, an alternative. I think the truth is somewhere in between, because of widespread tax evasion amongst people who work for themselves. If tax rates are low enough, they declare more of their income. If tax rates are high, they hide more income. They are a politically powerful group, so the tax evasion is widely tolerated.

[CAwireman]

Always be checking your facts…..

Contrary to Internet folklore, Dr. Kamerschen is NOT the author of “Tax Cuts: A Simple Lesson in Economics.” Additionally, he does NOT know who wrote it.

http://davidk.myweb.uga.edu/

[CAwireman]

Always be checking your facts…..

Contrary to Internet folklore, Dr. Kamerschen is NOT the author of “Tax Cuts: A Simple Lesson in Economics.” Additionally, he does NOT know who wrote it.

http://davidk.myweb.uga.edu/

[CAwireman]

Always be checking your facts…..

Contrary to Internet folklore, Dr. Kamerschen is NOT the author of “Tax Cuts: A Simple Lesson in Economics.” Additionally, he does NOT know who wrote it.

http://davidk.myweb.uga.edu/

[CAwireman]

Always be checking your facts…..

Contrary to Internet folklore, Dr. Kamerschen is NOT the author of “Tax Cuts: A Simple Lesson in Economics.” Additionally, he does NOT know who wrote it.

http://davidk.myweb.uga.edu/

[CAwireman]

Always be checking your facts…..

Contrary to Internet folklore, Dr. Kamerschen is NOT the author of “Tax Cuts: A Simple Lesson in Economics.” Additionally, he does NOT know who wrote it.

http://davidk.myweb.uga.edu/

[Eugene]

Imagine that there are only ten people in the world. There’s also a brewery (with its own bar).

Seven people work at the brewery and earn $10/month. They don’t pay any taxes.

One guy is a government-employed doctor, he earns $15/month.

One guy works as a manager of the brewery and earns $25/month, and pays $5/month in taxes.

The remaining guy owns the brewery, he does not work at all, he makes $100/month in capital gains and pays $10/month in taxes.

Everyone gets free health care, paid for by the government. There’s also a plan that promises disability insurance to anyone who can’t work.

One day the guy #10 realizes that he pays 2/3rds of all taxes, but his healthcare isn’t any better than that of #1…#8. He decides that it’s unjust, and he starts a party that would defend his interests. He invites the manager as his co-founder. He attracts four workers by promising them that the party will ban abortion, enforce prayer in schools, and institute death penalty for homosexuals.

Together they get the majority in the Senate, privatize healthcare, cut taxes, and abolish disability insurance. Guys #9 and #10 are way richer than #1..#8 and they can afford to pay more for healthcare. The doctor begins working for them full-time.

#1 to #7 notice that the beer becomes more expensive, because #8, #9, and #10 have more money left in their pockets, and #1 to #7 have to buy expensive health insurance just to get some attention from the doctor. So #8 to #10 drink more beer and #1 to #7 drink less.

After a few months, #1 breaks his leg, he becomes disabled and soon dies.

Finally workers decide that they had enough. They beat up #10 and kick him out of the country.

[Eugene]

Imagine that there are only ten people in the world. There’s also a brewery (with its own bar).

Seven people work at the brewery and earn $10/month. They don’t pay any taxes.

One guy is a government-employed doctor, he earns $15/month.

One guy works as a manager of the brewery and earns $25/month, and pays $5/month in taxes.

The remaining guy owns the brewery, he does not work at all, he makes $100/month in capital gains and pays $10/month in taxes.

Everyone gets free health care, paid for by the government. There’s also a plan that promises disability insurance to anyone who can’t work.

One day the guy #10 realizes that he pays 2/3rds of all taxes, but his healthcare isn’t any better than that of #1…#8. He decides that it’s unjust, and he starts a party that would defend his interests. He invites the manager as his co-founder. He attracts four workers by promising them that the party will ban abortion, enforce prayer in schools, and institute death penalty for homosexuals.

Together they get the majority in the Senate, privatize healthcare, cut taxes, and abolish disability insurance. Guys #9 and #10 are way richer than #1..#8 and they can afford to pay more for healthcare. The doctor begins working for them full-time.

#1 to #7 notice that the beer becomes more expensive, because #8, #9, and #10 have more money left in their pockets, and #1 to #7 have to buy expensive health insurance just to get some attention from the doctor. So #8 to #10 drink more beer and #1 to #7 drink less.

After a few months, #1 breaks his leg, he becomes disabled and soon dies.

Finally workers decide that they had enough. They beat up #10 and kick him out of the country.

[Eugene]

Imagine that there are only ten people in the world. There’s also a brewery (with its own bar).

Seven people work at the brewery and earn $10/month. They don’t pay any taxes.

One guy is a government-employed doctor, he earns $15/month.

One guy works as a manager of the brewery and earns $25/month, and pays $5/month in taxes.

The remaining guy owns the brewery, he does not work at all, he makes $100/month in capital gains and pays $10/month in taxes.

Everyone gets free health care, paid for by the government. There’s also a plan that promises disability insurance to anyone who can’t work.

One day the guy #10 realizes that he pays 2/3rds of all taxes, but his healthcare isn’t any better than that of #1…#8. He decides that it’s unjust, and he starts a party that would defend his interests. He invites the manager as his co-founder. He attracts four workers by promising them that the party will ban abortion, enforce prayer in schools, and institute death penalty for homosexuals.

Together they get the majority in the Senate, privatize healthcare, cut taxes, and abolish disability insurance. Guys #9 and #10 are way richer than #1..#8 and they can afford to pay more for healthcare. The doctor begins working for them full-time.

#1 to #7 notice that the beer becomes more expensive, because #8, #9, and #10 have more money left in their pockets, and #1 to #7 have to buy expensive health insurance just to get some attention from the doctor. So #8 to #10 drink more beer and #1 to #7 drink less.

After a few months, #1 breaks his leg, he becomes disabled and soon dies.

Finally workers decide that they had enough. They beat up #10 and kick him out of the country.

[Eugene]

Imagine that there are only ten people in the world. There’s also a brewery (with its own bar).

Seven people work at the brewery and earn $10/month. They don’t pay any taxes.

One guy is a government-employed doctor, he earns $15/month.

One guy works as a manager of the brewery and earns $25/month, and pays $5/month in taxes.

The remaining guy owns the brewery, he does not work at all, he makes $100/month in capital gains and pays $10/month in taxes.

Everyone gets free health care, paid for by the government. There’s also a plan that promises disability insurance to anyone who can’t work.

One day the guy #10 realizes that he pays 2/3rds of all taxes, but his healthcare isn’t any better than that of #1…#8. He decides that it’s unjust, and he starts a party that would defend his interests. He invites the manager as his co-founder. He attracts four workers by promising them that the party will ban abortion, enforce prayer in schools, and institute death penalty for homosexuals.

Together they get the majority in the Senate, privatize healthcare, cut taxes, and abolish disability insurance. Guys #9 and #10 are way richer than #1..#8 and they can afford to pay more for healthcare. The doctor begins working for them full-time.

#1 to #7 notice that the beer becomes more expensive, because #8, #9, and #10 have more money left in their pockets, and #1 to #7 have to buy expensive health insurance just to get some attention from the doctor. So #8 to #10 drink more beer and #1 to #7 drink less.

After a few months, #1 breaks his leg, he becomes disabled and soon dies.

Finally workers decide that they had enough. They beat up #10 and kick him out of the country.

[Eugene]

Imagine that there are only ten people in the world. There’s also a brewery (with its own bar).

Seven people work at the brewery and earn $10/month. They don’t pay any taxes.

One guy is a government-employed doctor, he earns $15/month.

One guy works as a manager of the brewery and earns $25/month, and pays $5/month in taxes.

The remaining guy owns the brewery, he does not work at all, he makes $100/month in capital gains and pays $10/month in taxes.

Everyone gets free health care, paid for by the government. There’s also a plan that promises disability insurance to anyone who can’t work.

One day the guy #10 realizes that he pays 2/3rds of all taxes, but his healthcare isn’t any better than that of #1…#8. He decides that it’s unjust, and he starts a party that would defend his interests. He invites the manager as his co-founder. He attracts four workers by promising them that the party will ban abortion, enforce prayer in schools, and institute death penalty for homosexuals.

Together they get the majority in the Senate, privatize healthcare, cut taxes, and abolish disability insurance. Guys #9 and #10 are way richer than #1..#8 and they can afford to pay more for healthcare. The doctor begins working for them full-time.

#1 to #7 notice that the beer becomes more expensive, because #8, #9, and #10 have more money left in their pockets, and #1 to #7 have to buy expensive health insurance just to get some attention from the doctor. So #8 to #10 drink more beer and #1 to #7 drink less.

After a few months, #1 breaks his leg, he becomes disabled and soon dies.

Finally workers decide that they had enough. They beat up #10 and kick him out of the country.

[Coronita]

Why do people hate other people with more money? I just don’t get it. Not ever rich person is a crook, and some (maybe just some) worked a tee-bit harder than the rest of us.

If you care about money enough, go figure a way to make more. If you don’t care, than it shouldn’t matter what someone how has more does with it.

I think I’m going to join UAW.

Socialism. Sigh.

[Coronita]

Why do people hate other people with more money? I just don’t get it. Not ever rich person is a crook, and some (maybe just some) worked a tee-bit harder than the rest of us.

If you care about money enough, go figure a way to make more. If you don’t care, than it shouldn’t matter what someone how has more does with it.

I think I’m going to join UAW.

Socialism. Sigh.

[Coronita]

Why do people hate other people with more money? I just don’t get it. Not ever rich person is a crook, and some (maybe just some) worked a tee-bit harder than the rest of us.

If you care about money enough, go figure a way to make more. If you don’t care, than it shouldn’t matter what someone how has more does with it.

I think I’m going to join UAW.

Socialism. Sigh.

[Coronita]

Why do people hate other people with more money? I just don’t get it. Not ever rich person is a crook, and some (maybe just some) worked a tee-bit harder than the rest of us.

If you care about money enough, go figure a way to make more. If you don’t care, than it shouldn’t matter what someone how has more does with it.

I think I’m going to join UAW.

Socialism. Sigh.

[Author]

Posts