1 February 2012

Economics so obvious, only an economic student doesn't understand it.

This was forwarded to me by a guy I know, who'd had it forwarded to him by some other guy, who got it from a guy who said someone he saw on the internet said it really happened, so it must be true.

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 Obama's 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 Obama'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 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.

As the tests proceeded, 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.
It could not be any simpler than that.


Patience said...

But don't you think they should have health care the way we do?

Bear-i-tone said...

I don't know. I've heard people who should know and whose opinion I respect claim that their system is better than ours, and I've heard people who should know and whose opinion I respect claim that ours is the better system.

I wsan't so much concerned about the Obama angle, more about the illustration on socialism in action.