Bar Stool Economics – How Taxes Work



Lee Doren from How the World Works (you may have seen him on the Glenn Beck Show before) was inspired by a post at Mother Jones to create a new video explaining how taxes work by telling a simple story based on bar stool economics. The Mother Jones’ post paints Republicans as evil for wanting to keep the current tax code for everyone, including the rich! They note how much more the rich get in tax cuts than everyone else, and Doren seeks to explain why not only is that not bad, but it is to be expected:

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8 thoughts on “Bar Stool Economics – How Taxes Work

  1. Taking a class in economics at a bar would be awesome. All the ways to explain Keynesian economics with a beer funnel would be great. It’s even a better explanation of the boom and bust cycles in the economy. Do you think Kelsey Grammer and John Ratzenberger would teach it?

  2. And yet you know damned well that any liberal watching this would explain it away as just being a big lie. They’d say that the richest man either doesn’t pay his fair share, or that there aren’t any people drinking for free. Or that it’s the “rich man’s” “responsibility” to help out his less wealthy friends. Others will just say it’s a gross exaggeration, or that the whole thing is just plain wrong. Either way, this would be completely lost on the economic illiterates that worship at the altar of liberality, so don’t get your hopes up, Stephen. Remember: the very hallmark of the liberal is dishonesty, including mental. They continue to say we (Conservatives) are trying, irresponsibly, to cut taxes, when that’s completely untrue. The true story is that we’re trying to, at least, maintain the current tax rate, while the liberals are looking to return them to Clinton Administration levels, which equals a tax HIKE. These are the people that think that raising the taxes of the “rich” people (like small business owners that make a couple hundred k), things will be ‘fair’ and ‘equal’. Then, when these overtaxed businesses either go under, or start firing employees, because they can’t afford them (remember: they’re already taxed, just for the privilege of having an employee on their payroll) and have to fight to keep from going under, they’re going to be the bad guys, and in need of more regulation. Maybe they’ll say that it’s illegal to fire employees, unless you get the OK from the US Supreme Court, or something stupid like that.

    Wouldn’t put it past an inept administration headed by a weakling like the Dalai Obama, that employs sociopaths like the Clintons, and favors out-of-the-closet, loud-and-proud commies and maoists.

    1. No. They’ll say let’s call it chicken soup instead of beer because nobody really needs beer. This means the rich guy can’t just walk away and not show up, because he needs to eat his soup.

      And instead of giving the rich guy a $10 price break on his share, let’s remember that the soup seller has bills to pay, too. So instead of reducing the whole tab by $20, he can just reduce it by $10, and maybe serve them a little more soup, or make the soup a tad heartier, put more chicken or some noodles in it. The rich guy, since he doesn’t need that big a reduction, can have his bill go from $59 down to maybe $54.

      And so, everybody still comes out a little better, except for the soup man, but he still comes out a little better than under the other plan. Even the original 4 who weren’t paying anything are coming out better… they’re getting a little more soup, and more nutrition.

      The moral of the story is… use your noodle. Don’t be chicken.

  3. To be a liberal, you honestly have to dis-regard math. Because if you don’t, then you understand that when you tax based on a percentage, the people who earn the most will pay the most and at the same time they will save the most money when you give a tax break. The fact that they need a long, drawn out example like the one provided here is a sad truth. They don’t understand basic math.

  4. Thanks RS. Enjoyed that. It would be nice if the librocrats would watch it, but it has numbers ‘nstuff in it, so they wouldn’t like it.

    Speaking of demogogues – the hypocrisy is getting looney. Why are the Bush tax cuts FOR THE MIDDLE CLASS expiring now, I asks meself? So I answers – because the same DEMOGOGOCRATS who are now playing the guardians of the little guys – OPPOSED THE MIDDLE CLASS TAX BREAKS! So to get it done the GOP had to use that thingy, you know, ummm, wadya call it… Oh yeah – Reconciliation. The Byrd Rule says that any measure passed by reconciliation expires in ten years – unless extended and/or re-enacted by congress. Now these morons are messing with it again! A bunch of hypocritical cretin. Democretin!

  5. Well.. imho it does not get more clear than that. With this video in mind – should be a no brainer to extend the tax breaks – dare I say – permanently? It will be interesting reading everyones comments in this thread. Well done Lee Doren. TY RS for posting this video.

    1. Beware of “false choices.”

      When you’re told, “This is the smart way, and that’s the dumb way… make your choice, right now.” that usually means you’re being manipulated. In economics, you’ll almost always have more than 2 choices.

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