Understanding incentive

[Dave A]

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.
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What gets rewarded gets done!

Could not be any simpler than that.

[IanF]

What a good example, thanks Dave

[Sieg]

And if Socialism is so destined to fail, then what chance does communism have? And will a National Health system as called for by the commies in South Africa, really work? Will such a system be able to provide even the most mediocre of health care? Is it not doomed before it even starts?

[Dave A]

Sieg, when I heard that the prospects of surviving a medical emergency were better in South Africa than in the UK with their national medical health plan, it certainly gave me pause for thought.

Do we have the economic engine in South Africa sufficient to support the social safety net this government seems to want?

At times like these, I can't help think of the safety instruction on aeroplanes "In the event of a sudden loss of pressure, put on your own mask first before you assist other passengers."
Your not going to be much help to others once you pass out...

If we're going to look after everyone, this government needs to focus on getting the economic engine together that can "take the load." And that would be a double blessing - fewer people in need of government aid and more people to finance those who really need it.

[Marq]

This story goes well with the other axiom.

You cannot multiply wealth by dividing it

[Dave A]

I just had to Twitter that.

[Marq]

Found it....the original quote and thread here

[tec0]

It is such a shame... Incentive, the need to get so that you can give. How sad is the human mind really? Fact is slavery can also be thought of as incentive.

You don’t work you die. But! And this is a big BUT! If you don’t work in the modern world of today you die! So what have changed. Nothing. We are in the mindset of “if you do something for nothing then you are an idiot!” Since I do fix old computers for the less fortunate at no charge I must be an idiot.

But thanks to me, a piece of scrap has function and someone is benefitting from it. Now I am not blowing smoke up my own ass but I am more than happy to fix old crap for those who really need it. It is who I am and that is what I do. My incentive, the smile and the thank you I get.

Now let us get back to the students and their teacher. If the teacher took the time to explain to the students that if all just did their small part and studied just a little then everyone would have benefited! Everyone would have had a nice A, B or a respectable C. But no!

See this teacher wanted the system to fail so he didn’t inform them of the consequences. He wanted to prove the “human nature” argument thing that is running around. But the truth is if someone just took on leadership and said ok let’s make this work thinks might have been different.

[carm]

I have run a business where we give incentives to help increase turnover. I found that people who are driven will be motivated even for a minimum reward but those that lack ambition will not even blink for the largest of rewards.
Thus said, I must agree that socialism does not work with incentives , or even disipline.
We are all unique and strive for different things. We cant all be equal in social standards.
Some people are driven and others happy to get by.
I do believe in helping others but they must also want to help themselves

[tec0]

Socialism doesn’t work? Well now that is a bit powerful taking into consideration that there was a time when we had big dinosaurs to deal with. Yes think about this, a few thousand years ago, we had to fight for food water and the right to life. We did so how? By buying protection and enslaving people!? No...

Fact is our survival was based on “everyone doing there bit” So before money and other such things, WE used to work together as a functional group! But then some idiot invented a little thing called greed and we have been suffering because of it. So if socialism was not successful back then we as humankind would have died. Fact is socialism can and will work the prove is in our history before all the death and wars.

[Dave A]

Fact is our survival was based on “everyone doing there bit”

Fact is survival was being able to run away from the T. Rex faster than someone else in the group.

[IanF]

Socialism Works?

Fact is socialism can and will work the prove is in our history before all the death and wars.

Here are some good quotes.“For socialists, not just the wealth, but the guilt, must be redistributed”
“All socialism involves slavery”
“Socialism: nothing more than the theory that the slave is always more virtuous than his master”
Teco normally I ignore rantings like yours but I googled a few quotes which may give you insight into the consequences of socialism.

[Dave A]

The funny part in all of this is in a way I'm supportive of some aspects of socialism - particularly the idea of helping those who need help in their time of need.

However, I think that assistance needs to be conditional:

• The person needing help is already trying his/her best to help them self
• The assistance isn't a handicap on the helper
• The assistance is a privilege, not a right
• The assistance is temporary, not permanent
• The system still rewards performance.

Progress is dependent on the exceptional - make sure that the exceptional receives its reward.

[tec0]

Why are there slaves to start with? Right now this argument is pointless however it is worth mentioning that technology and recourses are available to us. But if I may point out to you that over 93% of the Worlds wealth is owned by less than 1% of the world’s population.

So basically you and your businesses are owned by someone else. Now you may ask; what is the significance of this phenomena. I answer; it is because we are slaves to this 1%. You, your children will be slaves to them, and when you look at the local degradation of law, schooling and health THIS picture gets a bit bigger. Now if you would put your ego aside and realize that what I am saying IS true you will see why this topic is so important to me.

Now you will say; yes but, what you are suggesting is the same thing! I will answer again; No... If all of us have a right to a job a right to money and a right to health and schooling! Things will not be the same. The wealth of the people will be used for the people. Right now the wealth is used by this 1% of wealthy people for their own pleasures.

You and your children are not important to them so they will leave them to die. You live in South Africa you know that this is true because just look around Africa and you will see that Africa is a real hellhole.

[tec0]

Teco normally I ignore rantings like yours

I can also Google facts and plaster it against a wall but I actually have “original thoughts”. I have lost it all, when it comes to my finances, my investments and ventures. I know how it feels to have nothing.

But I am thankful for that, because it made me sensitive to the “Human Condition” Now you can Google it, you can think about it. You can criticise me and ridicule me all you want. But you will never ever know what I am on about. Simply because you can’t feel it...

Now I am not saying you are a bad person. I am not judging you and clearly as you have stated you normally ignore this type of thing so I will leave it there. But I shall be damned, before I accept that this world is what it is. I can’t do anything about it, that is true. But, that doesn’t mean I have to accept it...