I don’t often merely pass on email I get, but this came from my friend Linda and I found it very apt, particularly since my son thinks he wants to live in Sweden. (Mind you I’m no economist and I’m not attempting to discredit “progressive taxation”…) See the email forward below in blue… and my economist brother-in-law’s response below that in red.
“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 okay, 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, 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.
“Could not be any simpler than that….”
Reply from John: “From December 31, 1969 to April 30, 2009 a $100 invested in the Swedish stock market would have grown to $13,099. In the same period in the US market it would have grown to $2,945. Why shouldn’t we consider them to have a more effective market economy than we do?”
I guess nothing is simple!