An economics professor at Texas Tech said he had never failed a single student before but had, once, failed an entire class.
That class consensus was that socialism worked – no one is poor and no one is rich, a great equalizer.
The professor proposed an experiment on socialism for this class: All grades would be averaged and everyone would receive the same grade.
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 for the first test studied even less, and the ones who studied hard on the first test decided they wanted a free ride too; so they studied little.
The second test average was a D! No one was happy.
The average on the 3rd test was an F. Ouch. To the students great surprise, all failed.
Test scores plummeted as bickering, blame, name calling caused hard feelings. Finally, no one wanted to study for the benefit of anyone else.
The lesson: socialism ultimately fails 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.
Not very complicated, at all …"
Remove the profit motive, and innovation and expansion cease. There is no reward. Trying to equalize everyone does not mean that you are trying to lift the lower income to the higher, it means that you destroy the higher income, and bring them down to the lower.