ECONOMICS: A bushel of insanity

Consider an economy of two wheat farmers and a silo operator that form a cooperative and vote regarding decisions that affect the collective. Mr. Marx the silo operator charges a percentage of the grain stored. Farmer Smith is hardworking and diligent. Sun up to sun down, six days a week without fail he tends his fields. Farmer Jones works eight-hour days with two breaks and an hour for lunch. He takes sick and vacation days and tells everyone who listens about how hard he works.

The total harvest is 1,000 bushels of wheat in the silos. Smith deposited 800 and Jones deposited 200. After Marx takes his 10 percent (100 bushels) there are 720 bushels in Smith's account and 180 in Jones' account.

Marx says, "It isn't fair that one farmer has four times as much as the other! We should charge anyone depositing more than 200 bushels 30 percent, because they can afford it, and make the first 200 bushels free." The vote is two to one.

The next harvest is 600 bushels, Smith 500 and Jones 100. After Marx takes his 30 percent (90 bushels) Smith has 410 and Jones has 100.

Smith has MORE than four times what Jones has AND Jones and Marx have less than before.

"The rich got richer and the poor got poorer!" shouts Marx. "The rich can afford to pay more!" screams Jones.

Smith sells the farm and moves away.

The 1 percent earns 20 percent of the income but pays 38 percent of the taxes... before they move away.

BRENT REGAN

Coeur d'Alene