Wednesday, April 15, 2009

Why Socialism Doesn't Work. "Are You Smarter than a Fifth Grader" Style.

Been in NY on business most of the week with little time to post, but had to put this up. A little story (think of it like Aesop's Fables...there is a moral to this story):

"An economics professor said he had never failed a single student before but had, once, failed an entire class. That class had insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer. The professor offered an experiment to test their theory.

All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the 1st test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. But, as the 2nd test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too; so they studied little. The second test average was a D! No one was happy. When the 3rd test rolled around the average was an F.

The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for the benefit of anyone else. All failed, to their great surprise, and the professor told them that socialism would also ultimately fail.

When the reward is great, the effort to succeed is great; but when government takes all the reward away, no one will try or want to succeed."

These are the basic tenets of the way that human nature has always responded to economic incentivization - or lack thereof - that seem to escape our government.

No comments:

Post a Comment