Socialism vs Free-Markets

As some of you know I am an advocate for the free-market. I do not support socialist markets. I felt this piece was a good analogy of how and why socialist markets do not work.

“Let’s never forget how America became great. We became great because for 190 years we have recognized that progress is achieved not through government doing more for people, but through people doing more for themselves.” – Richard Nixon, 1968

An economics professor at Texas Tech said 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. But, 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 as no one would study any longer for the benefit of anyone else. All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because under capitalism when the reward is great, the effort to succeed is great; but when the government levels the playing field and takes more of reward away; no one will try or want to succeed as much as before.

Could not be any simpler than that….

(Original here)

1 Response to “Socialism vs Free-Markets”

  1. 1 Alan Scott
    22 May 2009 at 19:23

    Much of what I find is by accident. Sometimes looking for one thing leads me to something else that I find interesting. We all know that the most socialist, tax crazy state is Caleefornia. Guvernor Arnold has been a disgrace to Republicans. The state is verging on bankruptcy. I found an article which by the title lead me to believe I was reading something written by a free marketer. Stupid me. It was in the LA Times, entitled “Schwarzenegger missed his golden opportunity to give Californians the truth” by Michael Hiltzik. http://www.latimes.com/business/la-fi-hiltzik21-2009may21,0,4354063.column?track=rss

    I had to read far in to the article before I got to the real message. It blasted the voters for not realizing that taxes are good. Then I decided to check on this Michael Hiltzik. It appears he got in to trouble awhile back for being a sock-puppeteer. Then I had to find out what that meant. He apparently logged on to his own blog and other blogs under another identity and made comments concerning himself and people he did not like. He was reassigned for a time by the paper. He seems to be back now.

    My point is that anything we read, we have to check out the credibility of the writer. I also now know a new term for a liberal liar.

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