No one should want to bet on a "Looser", but that is what we are doing. This blog will explain why.
I think that we have all made bets of one form or another and few of us want to admit that we have bet on a "looser". People and business make bets all the time and most of us look at the situation and try to bet on the winner. In economics, we call this betting by business "capitalism". Isn't that right? If a business bets on losers, it will not be long before the business goes broke. Most people do not realize that business is making bets all the time and they want to bet on winners if they can. Now how does this compare with the liberal or socialist people?
Unlike business that tries to bet on winners, liberals and socialist do not mind betting on losers. In most cases, the liberals and socialist do not even realize that they are betting on losers. Unlike business who want to produce a bigger pie, liberals and socialist are satisfied with the same size or even a smaller pie. When it comes to dividing up that pie, liberals and socialist are more concerned about how the pie is divided up than how big the piece is for the average person.
It would be nice and would make us all feel good if we could bet on losers and still end up winning, but like life, that may not be possible. To drive this point home, I will try an example using a typical school math class. Let's say that the class had 30 kids and as we all know, some are smarter than others. In the past, the class might be divided into three group, Robins, Blue Birds and Sparrows with the Sparrows being the best in math. This would allow each group to grow to the maximum of their potential and for the record, business would want to hire these Sparrows and pay them well. They might still hire some Blue Birds, but they could not afford to pay them as much as the Sparrows. Here is what happens when the liberals and socialist get control of that math class.
The liberals and socialist would not see the above system as being "fair" and "equal" and would be willing to bet on a system that prevented Sparrows from growing to their potential if they could get "equality". Businesses would not give up but would still hire the Sparrows even though they would find it more difficult to compete against countries like China. I think that most of you can follow this.
I am as sensitive to the fact that some of us are just not that talented in math and may not earn as much as someone else, but betting on the looser at the expense of the talented is not a real solution. If you have even the smallest grasp of the above, then you know that we must have some kind of compromise that does not kill the goose that lays the golden eggs. Even small children hare heard and understand the story about those who killed the goose that laid golden eggs. We have to try to produce the largest pie possible and then compromise on how the pie is divided up, knowing that it has to be divided on the basis of both merit and need. If little consideration is given to merit, you can be assured that the pie will be significantly smaller.
One has to play by the rules of the game, even if you don't like the rules. The is true when it comes to economics. Places like China are working hard to create a bigger pie for themselves and if we put our heads in the sand and do not realize this and spend too much of our money on Robins, at the end of the game, we will be living in poverty in homes rented from the Chinese. What we have to do is to start betting on winners for a change and compromise on the losers.