Economics Basics

Jul 23, 2009 at 2:02 AM
An economics professor at a local college recently made a statement that he while had never failed a single student before,
he has now failed an entire class.

It seems the class was insistent that Obama's agenda, specifically his commitment to quasi-socialist policies (the “spread the wealth around” concept) would inevitably and undoubtedly work – that, once it took full effect, no one would be “poor” and no one would be “rich” – that in fact his policies would prove to be a great equalizer.

The professor promptly proposed to the students that the class perform an experiment based on Obama's stated plans for the country.

All grades would be averaged and everyone would receive the same grade so no one would fail. Of course that also meant no one would receive an A either.

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 quite 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 took place and the scores were presented, 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 Obama’s agenda (i.e, socialism) would also ultimately fail because when the opportunity for substantial reward is great, the associated effort to succeed is equally great, but when government takes all the most desirable rewards away, no one will succeed, or even try.

Couldn’t be any simpler than that.

If somebody is unable to understand THIS explanation, then no explanation will suffice.

As the late Adrian Rogers said, "you cannot multiply wealth by dividing it."

Pass it on.


Thanks to my friend LickNister for passing this one on. I hope the original source will contact me to tell me who to credit.

1 Responses to Economics Basics

  1. Anonymous Says:

    Well, living in a Socialist country, I can say with certainty that that's not quite how it works. And as an American also, I can say with certainty that even if certain elements of the socialist society were implemented, it would never be the same version of government as we have here (in Denmark). And having tried both forms first hand, and knowing that they are both flawed, I can still say that I much prefer the system here. The teacher's idea of equalizing is too cut and dried compared to a full blown society, with all that entails. There are so many variables, and even though this is a full blown Socialist state, there are still people making A plusses, and there are also those who flunk. This is an analogy that lacks quite a lot of nuances. But this debate is too huge to do in one blog post :-)