Saturday, June 23, 2012

Why Socialism fails

Came across this interesting and instructive story recently:

An Economics Professor at a local University 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 with socialism, 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 the socialism principles. All grades will be averaged, and everyone will receive the same grade, no matter how one actually performs in the exam"

After the first test, the grades were averaged, and everyone got a “B”. The students who studied hard were a upset, and the students who studied little were happy. As the second test rolled around, the students who studied little studied even less, and the ones who had studied hard earlier took it easy too. The second test average was a “D”! No one was happy. When the third 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 others. By the end of the year, all failed.

The professor told them that socialism would ultimately fail because when the reward is great, the effort to succeed is great, but when the reward is not yours, no one will try or want to succeed.

Could not be any simpler than that.