Skip to main content

FIVE BEST SENTENCES IN ECONOMICS - Thought Provoking

An economics professor at a 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 socialism worked well since no one would be poor and no one would be rich, thus providing a great equalizer. 

The professor then said, "OK, we will have an experiment in this class on the Socialist 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 rupees - 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 likewise 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 was motivated to 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 (and risk) is great, the effort to succeed is great, but when government takes all the reward away, no one will work really hard to succeed.

                     
Could not be any simpler than that. (Please pass this on) 
  
These are possibly the 5 best sentences you'll ever read and all applicable to this experiment:

1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.

2. What one person receives without working for, another person must work for without receiving.

3. The government cannot give to anybody anything that the government does not first take from somebody else.

4. You cannot multiply wealth by dividing it!

5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.
Labels:

Comments

Post a Comment

Popular posts from this blog

Failure: Understanding, Coping, and Rising Again

  यदृच्छालाभसंतुष्टो द्वन्द्वातीतो विमत्सरः। समः सिद्धावसिद्धौ च कृत्वापि न निबध्यते He who is satisfied with gain which comes of its own accord, who is free from duality and does not envy, who is indifferent in both success & Failure, is never entangled ( bandan of karma), although performing actions Failure is a word that can invoke fear and disappointment, but it is also a powerful teacher and a catalyst for growth. Throughout history, failure has shaped many of the world’s greatest achievements. In India, stories of failure and subsequent success are woven into the fabric of our culture, from the world of business and sports to the battlefield and historical events. This blog will explore what failure means, why it happens, how to detect it early, its mental and emotional effects, and ways to bounce back—drawing from Indian history, business, sports, and military examples.   What is Failure? Failure is the inability to meet a desired goal or standard, whether personal ...
Post a Comment
Read more

Why Entity Structuring is the Cornerstone of a Successful Indian Family Business ?

Pranam  When it comes to Indian family businesses, most of the focus tends to be on growth, succession, and stability. Yet one fundamental aspect often overlooked is Entity Structuring —how your business is set up legally, financially, and operationally. At Veer Consultancy Services (VCS) , we help family businesses not just plan , but execute optimal entity structures that stand the test of time.   Why Does Entity Structuring Matter So Much? ü    An intelligently designed structure can: ü    Minimize tax liability ü   Ensure smooth succession and estate planning   ü   Separate risks   ü   Improve fundraising ability ü   Maintain control in the hands of promoters ü   Protect and grow family wealth   ü   Facilitate governance and reduce internal conflicts   A Proven Approach: HoldCo – AssetCo – OpCo Structure At VCS, we often advise family businesses to adopt a three-tier...
Post a Comment
Read more

Cost of Carry in an Indian Manufacturing Firm

 The "cost of carry" refers to the total expenses incurred by a manufacturing company to hold and store inventory over a period of time. This concept is crucial for effective inventory management, as it helps companies balance the benefits of holding inventory against the associated costs. In the context of an Indian manufacturing firm, understanding the cost of carry can significantly impact profitability and operational efficiency. Components of Cost of Carry 1. Storage Costs    - Rent or lease payments for warehouses    - Utility costs (electricity, heating, cooling)    - Salaries for warehouse staff    - Costs of equipment (e.g., forklifts, shelving) 2. Insurance Costs    - Insurance premiums to cover inventory against theft, damage, or loss 3. Depreciation and Obsolescence Costs    - Reduction in the value of inventory over time due to factors like obsolescence, perishability, or deterioration 4. Opportunity Costs ...
Post a Comment
Read more