How “Sharing the Wealth” Really Works
At risk of offending those who still believe that we need to “divide the pie differently” and that sharing the wealth will make us all prosperous, I have to share the following economics lesson that landed in my in-box yesterday:
An economics professor at a local college made a statement that 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, that it was the great equalizer.
The professor then said, “OK, we will have an experiment in this class on socialism. All grades will be averaged and everyone will receive the same grade.” (So no one would fail and no one would receive an A.)
After the first 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.
As the second 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 and 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 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.
(Could not be any simpler than that.)
Posted: July 17th, 2009 under Uncategorized.
Comments
Comment from Marte Cliff
Time July 17, 2009 at 9:29 pm
I agree that when it comes to your education, what you learn should matter, not the grade.
And you absolutely should be working at a job where you get personal satisfaction from your contribution to the world.
But, would you really want to be the one who worked a 16 hour day while one co-worker put in 8 and the other didn’t bother to show up at all… yet you all got the same paycheck?
Comment from Kathleen McDade
Time July 17, 2009 at 9:41 pm
Well, there is precedent – Matthew 20.
I think there’s got to be a better way — maybe somewhere in between.
Comment from Marte Cliff
Time July 17, 2009 at 10:19 pm
Ah, yes… but note what this says: 13″But he answered one of them, ‘Friend, I am not being unfair to you. Didn’t you agree to work for a denarius? 14Take your pay and go. I want to give the man who was hired last the same as I gave you. 15Don’t I have the right to do what I want with my own money? Or are you envious because I am generous?’
Right now in our country, those who wish to distribute wealth aren’t playing with their own money. They’re taking it from one to give to the other.
But I agree with you…balance is usually the answer to any problem.
Comment from Kathleen McDade
Time July 17, 2009 at 3:09 pm
I would say that if you’re only working for the reward (money or a grade), you’re doing it wrong.