Bar Stool Economics

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 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

Puzzle : Try To Crack It.

Puzzle - try to crack it ...!!

Once there was a bus conductor, who was very rude to his passengers.
One day a beautiful young girl, tried to board the bus, but he didn't stop the bus.
Unfortunately the beautiful young girl came under the bus and died on the spot. Angry passengers took the conductor to the police station, who in turn took him to the court.
The judge was not at all impressed with him and gave him capital punishment.
He was taken to the electrocution chamber. The conductor was strapped to the chair and high voltage current was given to him. But to everyone's amazement, he survived. The judge decided to set him free, and he returned to his profession.

After a few months, this time, a middle aged woman tried to board the bus but the conductor didn't stop the bus. Unfortunately, this time also, the woman came under the bus and died on the spot.
Again angry passengers took him to the police station, who in turn took him to the court. The judge took one look at the conductor and gave him capital punishment. The Bus conductor was taken to the same electrocution chamber. He was strapped to the chair and high voltage current was given to him. This time also to everyone's amazement, he survived. The judge decided to set him free, and he returned to his profession.

A couple of months later, an elderly gentleman tried to board the bus. This time the Bus conductor, remembering his earlier experiences, stopped the bus. Unfortunately the elderly gentleman slipped and died due to his injuries. The conductor was taken to the court, to the same judge. Though he hadn't done anything wrong, but considering his past record the judge gave him capital punishment.
The Bus conductor was again taken to the same electrocution chamber. He was strapped to the chair and high voltage current was given to him.
This time he died instantly !!!

The question is why didn't he die on the first two occasions, but died instantly the third time??

Try to solve it yourselves. This is rather interesting and the answer is perfectly logical. If necessary read the puzzle once again.
Clue:It has something to do with electricity.If you are science student,you should be able to solve the puzzle with ease.

Ok........ there is the Answer...... ......
I'm gonna get beaten up for this...!



During the first two times, the conductor was a Bad Conductor, therefore electricity didn't pass through him. But during the third time, he was a good conductor, so electricity passed through him freely and he died !!

Isn't the answer scientific ?....perhaps you have forgotten about basic Physics studied during your school days !