Archive for the ‘Society At Its Worst’ Category

Bar Stool Economics

Saturday, February 23rd, 2008


From the University of Georgia :

 

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 b e 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!” “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 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

 

For those who understand, no explanation is needed. For those who do not understand, no explanation is possible.

Home Depot – Pencilin’ Out The Major Crime

Monday, November 21st, 2005

Never figured Home Depot would be out screwing the little guy….Don’t plan on leaving with your floorplan that you draw on THIER paper in THEIR buildings.

Wonder if you can get arrested for stealing dust?
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http://www.volunteertv.com/Global/story.asp?S=4148708

http://abclocal.go.com/wpvi/story?section=bizarre&id=3654039

Home Depot apologizes for banning carpenter who took a pencil
Methuen, MA (AP) – Home Depot has apologized to a carpenter in Massachusetts who was banned by the chain for absent-mindedly pocketing a pencil.

Michael Panorelli says he was with a client and had just bought some lumber from a Home Depot in Lawrence last week.

Panorelli says he needed to do some quick math, so the client handed him a pencil sitting next to the register. Afterward, he absent-mindedly put it in his pocket.

Panorelli says he was met in the parking lot by a worker who gave him two letters. One told him he was banned from Home Depot stores worldwide because of shoplifting. The other said he’d be hearing from the company’s lawyers.

Panorelli told his story to the Eagle-Tribune newspaper.

After the story ran, home depot issued a written apology, blaming the incident on a narrow interpretation of its shoplifting-prevention rules. Still, Panorelli says he has no intention of doing business there again.

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http://abclocal.go.com/ktrk/story?section=bizarre&id=3653904

Home Depot apologizes to pencil thief
(11/21/05 – METHUEN, MA) – Home Depot Inc. apologized to a carpenter who was banned by the chain worldwide after he absent-mindedly pocketed a pencil he had used up to do some quick math. Michael Panorelli, 51, of Lawrence, was accused of shoplifting from the Methuen store last Thursday and banned from Home Depots.

Panorelli was with a client and had just bought some lumber when the client picked up the pencil sitting next to a cash register for Panorelli to use. Panorelli pocketed the pencil and was met in the parking lot by a worker who asked for identification.

The worker presented Panorelli with one letter saying he was banned from Home Depot, and another advising that he would be hearing from the company’s lawyers.

Panorelli took his story to the Eagle-Tribune newspaper in Lawrence, which published it over the weekend.

On Sunday, Atlanta-based Home Depot issued a written apology, saying the incident was prompted by a narrow interpretation of its shoplifting-prevention rules.

“We will not be pursuing any claims against Mr. Panorelli for this incident,” the statement said. “We welcome Mr. Panorelli back as a customer in our stores at any time.”

But the carpenter said he had no intention of doing business there again, adding, “Why should I put money in someone’s pocket when they treat me like this?”

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http://www.mediainfo.com/eandp/news/article_display.jsp?vnu_content_id=1001525918

Newspaper Saves Carpenter Banned from Home Depot for Taking One Pencil
Published: November 21, 2005 5:15 PM ET

NEW YORK Thanks to the daily newspaper in Lawrence, Ma., a local carpenter will not be banned from worldwide Home Depots for life–for absent-mindedly sticking a pencil from one of the stores in his pocket.

Home Depot Inc. has apologized to a carpenter, Michael Panorellis, 51, of Lawrence, who was banned by the chain worldwide after he pocketed a pencil he had used to do some quick math. “We will not be pursuing any claims against Mr. Panorelli for this incident,” the statement said. “We welcome Mr. Panorelli back as a customer in our stores at any time.”

But Panorelli said he had no intention of doing business there again, adding, “Why should I put money in someone’s pocket when they treat me like this?”

Panorelli was accused of shoplifting from the Methuen store last Thursday. He was with a client and had just bought some lumber when the client picked up the pencil sitting next to a cash register for Panorelli to use. Panorelli ended up holding on to the pencil and was met in the parking lot by a worker who asked for identification, then presented him a letter saying he was banned from Home Depot. He gave him another letter advising that he would be hearing from the company’s lawyers.

Panorelli took his story to the Eagle-Tribune newspaper in Lawrence, which published it over the weekend.

In response, Atlanta-based Home Depot issued a written apology, saying the incident was prompted by a narrow interpretation of its shoplifting-prevention rules.

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