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Keeping Capitalism off the Endangered Species List

Another analogy explaining why Obama’s spread the wealth policies won’t work.

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I got this analogy in an email today. It is much better than the one I wrote earlier using a classroom example. It comes from a UGA Economics Professor. Here it is:
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 fifthman. ‘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!

(The 10th man was originally paying $59 of $100, then $49 of $80)

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

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

—————-

Remember, my liberal friends, that you were warned. I don’t want to hear any whining from any of you once your jobs are shipped overseas.

Written by preservetherepublic

October 29, 2008 at 12:41 am

Bill Ayers sat on a board with an unrepentant Communist.

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    Barack Obama is standing by his “Spread the Wealth” comment. On Good Morning America, ABC News anchor Robin Roberts asked Barack Obama if he regretted the “spread the wealth” comment. Here is Obama’s answer:

     “Not at all. Look, if John McCain’s best argument is that he wants to continue the same Bush tax cuts for the very wealthiest Americans, that in 2000 he himself opposed, and in the meantime, fails to give tax cuts to 100 million people in America that I would give tax cuts to John McCain’s going to have some problems. Because the American people understand that the way we grow this economy is from the bottom-up. And for us to want to continue to give tax breaks to big corporations and the wealthiest, instead of the middle class that are desperately in need of some help right now, would not only be bad for the families, it would be bad as the economy as a whole. It will prevent the economy from recovering. ”

Let me make a few points here. First of all, both candidates are going to continue the Bush tax cuts for the first two years of their term. The tax cuts won’t expire until 2011. Second, Bush cut taxes across the board and once the tax cut expires, it cause taxes to go up. That is raising taxes. Third, you can’t grow the economy from the bottom up by taxing the rich. Has anyone ever been given a job by a poor person? No. Also, tax hikes on the rich hurt the middle class because they cause jobs to be cut and prices to be raised. I love these campaign ads that Democrats have been using that point out that Republicans are trying to give tax breaks to companies that are sending jobs overseas. Jobs are going overseas because taxes are lower there. Is raising taxes more going to give them incentive to come back? Talk about keeping the economy from recovering. If you vote for this Communist, then you are slapping every soldier that died for our freedom since the American Revolution in the face.

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October 27, 2008 at 4:01 am

Obama finds Ayers’ book, “Searing and Timely”

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Obama's Blurb for Bill Ayers

Obama

It is coming more and more apparent that Obama’s relationship to Bill Ayers was closer than he has admitted. This appeared in the Chicago Tribune  on December 21, 1997 to promote Bill Ayers’ book A Kind and Just Parent: The Children of Juvinile Court.  Obama wasn’t exactly denouncing Ayers’ terrorist actions here was he? For all of you Obama worshippers out there, I would like to know whether you still still believe Obama’s first lie about Ayers being just a guy in his neigborhood or do you believe his second lie about believing that Ayers had been rehabilitated? If you still believe the first lie, then you haven’t listened to your Messiah’s changing story that closely. If you believe the second then he has fooled you twice, shame on you.

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October 21, 2008 at 7:25 pm

An Analogy to why Obama’s Plan to Spread the Wealth is Wrong!

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     Imagine that your child, Susie, is excelling in math at school. Your child is a natural at math and it comes easy to her. On a regular basis, she comes home with a 100 written on her math tests. However, one day you open up her book bag and find that she made an 85 on her test. This is not bad, but it is low for her so you look through the test to see what she got wrong. To your amazement, when you look at the test closely you find out that she got all of the answers correct. Thinking that this is unfair, you call her teacher, Mr. Obama, to see why 15 points were taken off of her test even though she got everything right. Mr. Obama explains that he took 15 points off of your child’s test because little Johnny who sits in a seat next to her only made a 55. Mr. Obama explains that he took 15 points away from Susie because she had more points than she really needed and Johnny was going to fail if the 15 points weren’t added to Johnny’s test. The 15 points would pull Johnny’s score up to 70 and Susie would have plenty of points left to pass. Outraged, you protest that Johnny did not earn those 15 points, Susie did. Furthermore, Susie put in the hard work to get the 100. Mr. Obama argues that Susie doesn’t have to work that hard anymore to get good grades, but Johnny has tried very, very hard and put forth a lot of effort and actually works harder than Susie. No matter how hard Johnny tries he just can’t get ahead because Johnny’s parents and friends won’t help him. He is being suppressed and held down by American society. Therefore, he isn’t trying to punish Susie’s success, he is just trying to make things more fair for Johnny. Still not convinced you ask Mr. Obama if he has tried tutoring Johnny after school. Mr. Obama replies that he has to spend his time spreading the test scores of others to help other students like Johnny. He can’t spend extra time on Johnny.

    Really aggravated, you call other parents to see if they will join in on the protest. However, the majority of Mr. Obama’s class is failing math and most of the parents are very happy with the redistribution of test scores. There is nothing that you can do about it, because everyone thinks that Mr. Obama is the Second Coming and the Chosen Teacher.

    Next, a lot of time goes by. Susie has gone from making 85s to making 75s because some of the other parents with passing kids moved their kids to other schools where they could keep more of their test points. To compensate, Mr. Obama now has to take more of Susie’s points. Also, some of the failing kids see that they will still be brought up to passing no matter what so they quit trying as hard too. More, time goes by and Susie is making 65s even though she gets all of the questions correct. There doesn’t seem to be as many test points available to go around anymore.  Students who were originally B and C students are also having to give points up now even though Mr. Obama originally promised he would only take points from the A students.

     Finally, it is time for graduation. Unfortunately, no one in Mr. Obama’s class passes. Everyone is held back because there weren’t enough points to pass everybody. Mr. Obama doesn’t seem so cool anymore.

    If Barack Obama is elected, he will redistribute the wealth by raising taxes on the wealthy. The problem is that we already have the second highest tax rate on businesses in the world. More taxes will cause these corporations to move overseas where taxes are lower and the jobs will go with them. Then, to compensate, taxes will be raised on smaller businesses. These businesses can’t afford to go overseas and will fail. Once they fail, more jobs are lost. This always happens in countries that adopt socialism. Please think things over before you vote.

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October 18, 2008 at 1:00 am

My Favorite Quotes from Barack and Michelle Obama: Words of Inspiration!

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“You go into these small towns in Pennsylvania and, like a lot of small towns in the Midwest, the jobs have been gone now for 25 years and nothing’s replaced them. And it’s not surprising, then, they get bitter, they cling to guns or religion or antipathy to people who aren’t like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.”  – Barack Obama

“Its not that I want to punish your success, I just want to make sure that everybody who is behind you..that they get a chance for success. I think that when you spread the wealth around, its good for everybody”.        – Barack Obama

“…I’ve got two daughters. 9 years old and 6 years old. I am going to teach them first of all about values and morals. But if they make a mistake, I don’t want them punished with a baby.” – Barack Obama

“I can no more disown (Jeremiah Wright) than I can disown the black community. I can no more disown him than I can my white grandmother – a woman who helped raise me, a woman who sacrificed again and again for me, a woman who loves me as much as she loves anything in this world, but a woman who once confessed her fear of black men who passed by her on the street, and who on more than one occasion has uttered racial or ethnic stereotypes that made me cringe.” – Barack Obama

“To avoid being mistaken for a sellout, I chose my friends carefully. The more politically active black students. The foreign students. The Chicanos. The Marxist professors and structural feminists.” – Barack Obama

“An acorn doesn’t fall far from the tree” – Barack Obama

 “The truth is, in order to get things like universal health care and a revamped education system, then someone is going to have to give up a piece of their pie so that someone else can have more.”  – Michelle Obama

“People in this country are ready for change and hungry for a different kind of politics and … for the first time in my adult life I am proud of my country” – Michelle Obama

“America is a downright mean country”  – Michelle Obama

I don’t know about the rest of you, but these words are very inspiring to me. I am inspired to make sure these two never live in the White House. Please get out and vote for McCain on November 4. Try to talk some sense into those around you.

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October 15, 2008 at 11:52 pm

Obama Admits that he is a Socialist While Canvassing Neighborhoods in Ohio

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Take a look at this conversation that Obama had with a plumber in Ohio.

        “Spread the Wealth” Huh? Obama may have as well came out and said “I think Communism is better for our country.” After everyone has been trying without success to pin Obama down for what he really is, I think that it is very fitting that the first person to do so is a plumber. Let’s let this man in on the final debate because he did something that McCain hasn’t so far. The man in the video is a great example of the many Americans who will have their businesses destroyed by Obama. Obama wants to penalize anyone who dares to be successful. People like the plumber will be expected to fund the largest welfare program in the history of the world. The Wall Street Journal called Obama’s tax plan what it really is – A Welfare Program! Make sure to read the Wall Street article, Obama’s Tax Plan Is Really a Welfare Plan. It seems that Obama is finally beginning to be exposed for what he is and the polls are beginning to tighten. It is not too late for this thing to turn around. I believe that it will turn around.

    However, if this race doesn’t tighten we are in trouble. Small businesses will collapse all over the place. Jobs are going to be lost because higher taxes on businesses making just over 250k per year will have to let people go. Forget Bill Ayers. Forget Tony Rezko. Forget Jeremiah Wright. Forget ACORN connections. The main issue is the economy and Obama will destroy it. If you are a small business owner reading this and you think Obama is going to be good for you then I challenge you to do some research first. His tax plan will hurt your business.

    Obama likes to talk fairness so let’s talk fairness. Is it fair for us to pay for everyone who got themselves into a bad financial mess? Is it fair for us to pay for everyone who chose not to take their education seriously? Is it fair for us to pay for everyone who had six children out of wedlock without thinking about how they were going to feed them? Is it fair for us to pay for everyone who got themselves into a mortgage they couldn’t afford? Is it fair for us to pay for everyone who made the mistake of only learning one set of skills and now can’t find another job because their industry dried up? We don’t need what the Wall Street Journal calls “The New Tax Welfare”.

 

 

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October 13, 2008 at 6:45 pm

Investors prefer McCain over Obama

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A Zogby poll recently showed that a significant number of investors support McCain over Obama. The poll showed that 53% of investors prefer McCain compared to only 35% of investors for Obama. Investors are the people who understand the economy the most and how it works.  On the flipside 52% of noninvestors support Obama to McCain’s 37%. To make a long story short, people who know what they are talking about support McCain and people who don’t support Obama. Too bad that most of the people voting are misinformed.

By the way, would someone please explain to me how Obama is going to give 95% of Americans a tax cut when 30% of Americans don’t pay taxes?

Also, Obama promised to cut capital gains taxes on small businesses. I would like to point out that small businesses pay income tax. They don’t pay capital gains taxes. That is like promising less rain to the desert.

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October 3, 2008 at 8:49 pm