Posted by: reformedmusings | October 29, 2008

Obama’s socialism made simple

This has been running around the Internet for years, but it provides an excellent and simple summary of what Barack Obama’s socialism would mean for America:

The Tax System – Explained With Beer
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 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.

Socialism is stealing from those who have earned their money and giving to those who have not earned it:

Image courtesy of Michelle Malkin

Image courtesy of Michelle Malkin

When you think about the snake oil economics that Barack Obama is selling the American people in this election, remember this little parable. Places like India and South Asia, China, South and Central America, Taiwan, and the Republic of Korea all have a talented, low-cost workforce and would love to have our companies move jobs to their areas. Been there, see it. A wealth-redistributing tax system here would make an overseas move attractive to US companies.

Fortunately, the largely-capitalist US economy is not a zero sum game as the socialist would have you believe. In other words, the pie can both grow and shrink. Through investment and commercial success, the US economy expands (pie gets larger), increasing jobs and pay for those even at the bottom of the pay scales (all get bigger pieces of the bigger pie). We lived off of the wildly-successful Reagan economic policies for over 20 years. Obama proposes a worse economic disaster than that over which the Carter administration presided. Socialism shrinks the pie by killing incentives to succeed and invest. While you can cut up the pie in the short term so that some get a bigger piece, in the long term everyone gets much less as lack of investment causes the economy to shrink. Just ask the Europeans before they turned around recently by changing to more conservative economic policies.

The wealth redistribution that Obama would ultimately bring will be the transfer of wealth out of the US and to more amenable countries in Asia and South and Central America. The people hurt the worst will be those whom Obama claims to be helping. Once done, it will be very difficult to recover, if recovery is even possible or attempted.

Vote for Freedom, reject the tyranny of socialism.



  1. […] That’s probably not a problem for Obama. He’ll just redistribute some wealth to the unemployment checks of 1/2 of the US electrical-generation industry. It’s just like magic. Of course, when the economy collapses, there won’t be nearly enough to distribute to anyone. Remember the beer example on taxes? […]

  2. […] Don’t say that I didn’t warn you. All this reminds me of a line in an old Ten Years After song, I’d Love to Change the World (live version with poor vocals but good guitar solo here), that goes: […]

  3. […] can we add to that, except this pre-election post? Possibly related posts: (automatically generated)Obama IS a socialist, and that’s nothing […]

  4. […] hastening the inevitable economic collapse. This is a much broader and complex version of the tax system explained with beer. But it accurately reflects the net result of socialism on human beings. There has never been a […]

  5. […] demonstration parallels my previously post: Obama’s socialism made simple.  If real history and logic were taught in our schools, we would know better than to think we can […]

  6. […] Those words should be guiding the national debate in the U.S.A., but the same people who think that their mortgage should be paid by others now want their health care paid by everyone else as well. So, now that the big auto companies and the largest investment banks are owned by the government with total lack of accountability , why not your doctors and hospital care? It’s all someone else’s money, right? If you think so, then read this again. […]

  7. […] are also illustrated in an earlier post here when beer was used explained Obama’s socialism. Advertisement GA_googleAddAttr("AdOpt", […]


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