Economics Lesson: Socialism will never work ...

Mortgage and Lending with HomeBridge Financial Services (NJ) NMLS 248937

 Since my Degree is in Economics, I love this stuff:


 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 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 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.

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.

Could not be any simpler than that.

 Have a great weekend.


Robert Rauf

Mortgage Banker   or my blog:

(732)223-1630 x102

Since 1987 I have been helping my clients fulfill their dream of home ownership!

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Comments (14)

Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Plain and simple, in words everyone should be able to understand....  did you hear about GM's BK?  afterwards Uncle sam will own about 72% of the company... THAT really bothers me.

May 29, 2009 11:21 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN


Great analogy!

Just sent it to my dad!  Thanks for the quip!  There is another RAINER on here..with a feature actually, you should send this too!

Take 5 guesses who??  LOL 

No, it is not the FHA EXPERT!!! LOL

Take care, and nice job!  D

May 29, 2009 11:24 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Darin, I think I can guess, But sometimes I like to mind my own business !

I think EVERYONE should have pay based on performance... some sort of commission standard. Would help fix a lot of things. But the way we are headed salary caps will kill Capitalism as we know it.

May 29, 2009 11:31 AM
Cheryl Willis
RE/MAX Solutions- OZARK MISSOURI - Mount Vernon, MO
MO Broker - Mt Vernon, Monett, Aurora, Barry & Law

I never understood the aversion to work.  At least if you work you know you will eat.  (that concept has been around a long time)  I would think life would be pretty unsettling waiting on someone else to provide for you.  I have heard this story before.  Do you remember the story of the little red hen (back when the hen didn't share the bread with the group) today's version is watered way down.   cw

May 29, 2009 11:39 AM
Mara Hawks
First Realty Auburn - Auburn, AL
Inactive-2012 REALTOR - Homes for Sale Auburn Real Estate, AL

I can understand things so much better when illustrated like this...what a great way to tech the lesson on socialism! Thanks for sharing this.

May 29, 2009 12:52 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Rob...  this is excellent.  Is this actually from a professor?  In a book?  Or did you make this up?  In any case, I am sending this to my dad, because he went to college and majored as a Chemical Engineer and minored in macro economics.  And got his masters in management/economics.  So he is great with this stuff and will agree with you 110%, just as I will.  Yes, this is simple and easy to understand, which scares me even more, because our gov't doesn't seem to think so. Now my blood is boiling, just thinking about this.  thanks PS>..  not much said, but this should be featured, which I will flag now...

jeff belonger


May 29, 2009 01:02 PM
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Great -- short and to the point on socialism.

May 29, 2009 02:03 PM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

Great analogy... Watch the movie "Idiocracy"..... The dumbing down of America has begun

May 30, 2009 01:08 AM
Gary Miljour
American Financial Network, Inc. NMLS#207208 - Southern Pines, NC
Mortgage Originator NMLS Licensed in AZ and NC
Robert, Great Post. Socialism has never worked. Getting the message out to the masses is the best way to correct the issue.
May 30, 2009 02:54 AM
Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator

Of course you realize that you will find yourself at the hot end of the Democrat/Liberal/Socialist iron with talk like this. I know, I am Tea Party Leader. You are, of course, absolutely correct.

May 30, 2009 03:19 PM
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

I've seen this story before and it is right-on!

May 31, 2009 02:23 AM
Carol Lee
Dilbeck Real Estate - Oak Park, CA
Realtor - Agoura, Oak Park, Westlake CA Homes

Sometimes I think the majority aspire to mediocrity.

May 31, 2009 04:01 PM
Tamara Perlman
Referral Network Inc. - Truckee, CA

Hi Rob--Great Illustration!  Keep them coming!  I hope you are doing well and had a great weekend. 

May 31, 2009 04:09 PM
Linda Greco Rich, ABR, SRES
Exit Preferred Realty - Bel Air, MD
Harford County Specialist

Isn't that the truth!!!

Jun 02, 2009 12:40 AM