Tuesday, March 23, 2010

Economics for dummys

According to the people who research Urban legends, this is not a true story, but it is brilliant.
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, a great equalizer.
The  professor then said, "OK, we will have an experiment  in this class on socialism. 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 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.
It could not be any  simpler than  that.
What  a profound short  little  paragraph that says it all

"You  cannot legislate the poor into freedom by legislating the  wealthy out of freedom. What one person receives without  working for, another person must work for without receiving.  The government cannot give to anybody anything that the  government does not first take from somebody else. 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 my dear friend, is about the end of any nation. You  cannot multiply wealth by dividing it."

~~~~ Dr. Adrian  Rogers,  1931

1 comment:

  1. So betaal maar vir Jan Tax en sharrup oor die res ;-)