Economics 101

Is this man truly a genius?  Checked out and this is true…it DID happen!

An economics professor at a local college made a statement that he had never failed a single student before, but had recently 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 then said, “OK, we will have an experiment in this class on Socialist’s plan”.  All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all).

After the first test, the grades were averaged and everyone got a B.  The resulting attitude was predictable.  The students who studied hard were upset and the students who studied little were happy.  This would be the natural reaction we would all most likely have.

After the second test, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they didn’t study like they normally would have.  Again, the results were prdictable.  The second test average was a D!  No one was happy.

When the 3rd test rolled around, the average was an F.  Test after test, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To “their” great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because 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.  No one will need to succeed.

Read the following 5 sentences…they could be the best you’ll ever read, and all applicable to this experiment:
1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.
2. What one person receives without working for, another person must work for without receiving.
3. The government cannot give to anybody anything that the government does not first take from somebody else.
4. You cannot multiply wealth by dividing it!
5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

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.

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