Tuesday, July 14, 2009

Why "Spreading the Wealth" won't work in the US

(Jason) So I've ALWAYS hated Obama's idea of spreading the wealth in order to be fair. This idea that people who earn more money should be taxed at much higher rates based on their high income is ridiculous and unfair. And worse, it's socialism which I highly disagree with. Here's a story that's probably not true, but I honestly believe the lesson it teaches is:

Professor is a Genius

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 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 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.

If you talk to people who are from the US and have lived in countries that have Universal Health Care or Socialized Medicine, you will usually hear stories of terrible doctors and people not liking the service they received. I believe this is the reason why. People who are not given proper motivation will lose interest and desire to be the best. Who cares if you are the best if you receive no reward for it. I'm afraid that eventually business will plateau and people will be less motivated to succeed if the government tries to equal everything out for everyone. The reason most people work hard is to rise above their circumstances and improve their life or their family's.

I guess the question I have is, how can we expect progress and innovation in America if we give no real reward to the innovator?

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