An economics professor at a local college made a statement that he had never failed a single student before, but had recently 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 will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all).
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.
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 anyone else.
To their great surprise, ALL FAILED 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. Could not be any simpler than that.
Read More at:-http://armstrongeconomics.com/2013/11/06/socialism-brought-home/
If there are insufficient inducements to work hard and insufficient penalties for not working hard, people will not even work, let alone work hard.
It's called carrots and sticks.
It begins with government run education systems.
Competition between peers has largely been taken out of government run schools.
Competition between peers is an extremely effective inducement for children to work harder at school.
Look at sports, particularly professional sports. The standards of professional sports have risen exponentially in the last 100 years, due to more competition, especially more global competition.
A competitive sportsman or team would slaughter any strong opponent from just 20 years ago.
Look at private school education systems.
Competition between peers is encouraged to a high level in almost all possible areas.
When young people leave school or college they face extremely strong competition - it's called the jobs market, which is now global.
If you want to see a failed experiment in Socialism - look at Europe's relative decline.
If you want to see a successful experiment with more Capitalism - look at China.
It dramatically understated America and Europe's relative decline since 2009.
The US is already down to 22% of global GDP, as at end 2011, due to poor governance, poor economic policies, increased regulations and overspending on the military.
Europe operates an increasingly centrally planned Socialist system, particularly since the advent of the Eurozone in 1999.
The results of which are plain to see, with the economic mess that Europe is now in.
The Eurozone (excluding Germany) has massive debts, massive unemployment and increasing levels of poverty.
Central Planning is always bad - it lends itself to mismanagement and corruption, both of which are prevalent in the undemocratic European system of governance in Brussels.
The European Union is undemocratic because power resides in unelected European Commissioners - not in the elected representatives in the European Parliament.
The European Union is a particularly bad example of Central Planning because of the disparate nature of the populations in various regions (countries).
Hence the undoubted speed of Europe's relative decline.
http://ian56.blogspot.com/2012/10/eurozone-problems-its-structural-thing.html
The Eurozone and the European Central Bank are now completely controlled by private banking interests.
Central Planning leads to a lack of competition between different systems of governance and different systems of economic and social policy.
Central Planning is ALWAYS bad.
Devolved regional governance is ALWAYS good.
It sets up a set of competing systems of economic, monetary and social policies.
Each region is then responsible for it's own well being and economic prosperity.
Just like a bunch of kids in a competitive classroom in school.
If one particular set of policies (governance) is demonstrably a bad system, that region will rapidly decline and if not adjusted be reduced to almost nothing, e.g. Detroit or the USSR.
If one particular set of policies (governance) is demonstrably a good system, that region will rapidly prosper and grow, e.g. America in the 1800's.
Jobs and people will flock to well managed regions and leave poorly managed ones.
Several countries in Europe are now seeing population declines as more and more people emigrate from the Socialist wreck that is Europe, to find better economic prospects elsewhere - particularly the wealth creators of the future, such as college graduates.
A set of relatively small independent and competitive economic units (called Nation States) was how Europe came to dominate the entire world in the first place (from the late Middle Ages).
This despite the obvious economic disadvantages of almost perpetual war between these Nation States.
While the large economic and political units of the Chinese and Caliphate Empires, which had been the major economic powers, suffered stagnation and eventual complete and utter decline due to a completely monopolistic and anti-competitive system of governance.
N.B. The United States no longer operates a Free Market Capitalist system
No country has yet managed to institute pure Free Market Capitalism.
It requires a very strong application of the Rule of Law in order to deter large Corporations or very wealthy individuals from using their wealth to abuse their power in order to further their own enrichment.
But it is possible.
It requires a strong principled leader and very good governance, such as President Andrew Jackson, to limit the power of large Corporations.
Andrew Jackson took away the powers of the international bankers and was the last American President to see America's National Debt at ZERO.
The U.S. came closest, with varying strong degrees of Free Market Capitalism, up to 1913.
The U.S. set a world economic record for the fastest ever growth and for the increase in it's people's standard of living - it went from almost nothing to the greatest power on Earth in a little over 130 years (from 1784, the end of the Revolutionary War).
It took Rome over 500 years to do that.
It took Britain around 700 years.
Just because something is difficult to do, does not mean that we should not aim to get as close to it as possible.
The benefits of the system of governance originally set up by the Founders are absolutely plain for all Americans to see.
The Founders also warned on numerous occasions about how difficult it would be to actually set up and maintain the system of governance that they wanted to see.
Since 1913 the U.S. has operated a system of increasingly monopolistic Corporate cartels and governance.
It started with the inception of the Federal Reserve private bank which operates completely monopolistic and anti Free Market power over the money supply and interest rates.
It started with the inception of the Income Tax, which was imposed to pay the interest on the debt to the international bankers, which the U.S. government was going to pay in the future on the massive amounts of debt it was going to be encouraged to rack up.
The U.S. has now deteriorated to such an extent that large Corporations and extremely wealthy individuals and families now operate a series of monopolistic cartels in each major industry.
The Federal government now increasingly operates a monopolistic position in governance, with the consequent lack of competition between the several States and consequent greater opportunities for large scale and widespread bribery and corruption, by those with wealth.
The large Corporations have completely bought the Federal government with campaign contributions and other bribes and inducements.
The Federal Reserve private bank is 50% owned by the Rothschild family.
Goldman Sachs, JP Morgan and the Rockefeller family own sizeable chunks.
These entities operate complete monopolistic powers on the U.S. money supply and interest rates and almost complete global control with their control over the ECB, the Bank of England and nearly all other Central Banks.
Banking - 5 major US banks now control 80%+ of the U.S. banking industry.
Arms companies. The top 20 suppliers to the US government are consistently making an average of 10% on sales. Name me another industry that manages that.
Pharmaceuticals. America pays by far the highest prices for prescription drugs in the world. Lower the price or go generic earlier. Half the large drug companies are foreign owned and making huge profits on the backs of the American taxpayer.
Food Production - 3 major companies increasingly hold a monopoly position on U.S. food production, through their control of seeds, pesticides and fertilizers - Monsanto, Dow Chemical and Bayer.
Monsanto. The Monsanto protection act has just been passed by Congress - reverse it. Ban all ex Monsanto employees from working at the FDA.
Healthcare (soon to be a cartel of a few large companies controlling most of the market with Obamacare).
The merger of Corporate and State power is called Fascism.
This is the system that now operates in America.
Free Market Capitalism operates on the principle of strong competition in the marketplace.
It rewards innovation and efficiency improvements through profit generation as a result of competitive advantage.
Free Market Capitalism requires the strong application of the Rule of Law on the powerful, to punish with deterrent penalties any harm that is done to others.
Competition is always good - it gives the best product at the best price to the end consumer.
Monopolies are always bad - they only benefits the monopolists.
The United States set up the best system of government ever devised.
It was a system of friendly competition between the "several States" who each had their own monetary, economic and social policies.
This system of governance is now almost completely defunct in the United States.
The Federal government now collects around 80% of all taxes and exerts well over 80% of the power and lawmaking in America.
The Genius of the United States is DYING - if it is not already dead
http://ian56.blogspot.com/2012/10/the-case-against-barack-obama.html
America is now increasingly :-
Poor
Average wealth has steeply declined from 1st in 1980 to 17th now. The rate of decline is accelerating.
Fascist
With increasing power for crony Corporations
Oligarchic
The remaining wealth is being concentrated in fewer and fewer hands
Kleptocratic
Where the wealth of the country is stolen from ordinary people and handed out to wealthy crony elites
Corrupt
All of the Federal government - the White House, Congress and the leadership of BOTH parties are now completely owned by large Corporations and wealthy elites
Not subject to the Rule of Law
Even on mainstream measures of the strength or otherwise of the application of the Rule of Law, America is rapidly slipping down the league tables and is now bettered by HONG KONG.
The heinous and serious crimes of the Obama regime - the utter failure to uphold the Rule of Law
http://ian56.blogspot.com/2013/03/the-heinous-and-serious-crimes-of-obama.html
Obama's Catalog of Civil Rights Abuses and preparations for massive civil unrest
http://ian56.blogspot.com/2012/11/obamas-civil-rights-violations.html
Socialist
With millions now dependent on some crumbs from the table - handouts and jobs from the Federal government
Weaker economically
It's relative economic decline is steep and accelerating
Weaker militarily
After draining it's strength and being defeated in a series of totally pointless and ill advised wars.
Even though America spends more on the military than the Rest of the World added together and far more than it ever did before.
Weaker Strategically
America now has far fewer allies and friends than it did 10 or 15 years ago.
China now has many more friends and allies than America.
The results of 30 years of fundamental mismanagement by the Federal government:-
How Big Business and Big Government is Taking Over America and subjugating Americans
America is now a million miles away from the system of governance envisioned by the Founders and which was so successful for well over 100 years.
As per Macchiavelli and the Prince - "only the semblance and not the substance of the old Institutions remain".
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