Thursday, November 07, 2013

BAR STOOL ECONOMICS - A nice & hilarious read on the state of the day

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100 and they paid the 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." So 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 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.

L&T Valves Limited

www.lntvalves.com

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Wednesday, May 01, 2013

The World's Largest Telescope to be built in Hawaii -

The world's Largest Telescope to be built in Hawaii

 

Astronomers the world over will be beside themselves with glee with the news that the latest stage in the development plan of the world's largest telescope – the Thirty Meter Telescope (TMT) – was given the green light over the weekend.

The project's backers described the permission, given by the Hawaiian Board of Land and Natural Resources (BLNR), as "another important step forward for the future of astronomical discovery and economic opportunity on Hawaii Island."

The next-generation observatory, set to be built close to the summit of the dormant 4,205-meter (13,796-ft) Mauna Kea volcano at a cost of $1 billion, will be the most advanced telescope on the planet, able to observe light and objects from some 13 billions years ago, encompassing the early years of the universe.

 

Thanks to its 30-meter-long (98.4 feet) segmented primary mirror, the enormous telescope will have nine times the collecting area of the current optical telescopes, while images will be three times sharper.

The project is the result of a collaboration between educational institutions and scientists in five countries – The US, Canada, Japan, China and India.

It does, however, have its opponents, with a number of local groups concerned about its impact on the environment as well as the heritage of the native Hawaiians. To allay fears of damage, those working on TMT are promising "responsible development and environmental stewardship of Mauna Kea in close partnership with local interests."

TMT now requires final approval of its construction plans from Hawaii's Department of Land and Natural Resources (DLNR). Providing it can get it, it'll still be a few years before the observatory actually goes into operation, with 2021 currently being touted as the most likely date.

If everything goes to plan, however, we can expect TMT to capture some pretty stunning images from the edges of the universe, with those working on the project claiming the telescope will allow astronomers to "study the universe as never before, finding answers to many of the grand challenges of science."

 

 

 


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