I always hear people say when buying a new reel, make sure it has a good drag system.  What exactly does this mean?  It's a pretty simply question I just never really understood what it met.

Just understand that the drag on a $20 reel will not be as good as a reel that cost $100 just keep that in mind when purchasing especially if your going to be using it for light line applications.

I would suggest buying the best you can afford.

I think most reel manufactures have drag systems down. A few felt discs or carbon and a metal washer or two and a tightening system.

A good drag to me means consistency. Not bumpy or Jerky while paying out line... No slippage

Also, don't confuse "good" drag with a "strong" drag. Just because a reel says it has 20lbs of drag doesn't mean it's worth a crap. A smooth drag system is more important. Most bass techniques use less than 5-6lbs at most anyway.

A good drag to me means consistency. Not bumpy or Jerky while paying out line... No slippage

Exactly, line pulls out smoothly plus a drag knob that clicks in increments for a more precise setting.  Strong max drags are not needed for the most part, setting the drag to line diameter is the important issue.  There are cases where model A may have a lower max drag than model B, sometimes model B will be a more expensive reel with different drag components.  In the case I'm thinking of model A doesn't compare to model B on any level, including drag performance.