Liberal Pop Quiz
by Anonymous at 9/15/2004 06:19:00 PM
Hi All,
You'll be glad to know that I am reading Reason: Why Liberals will Win the Battle for America. I tried to get it from the library, cuase I hate giving guys like this money, but it was checked out and already had a hold on it. Just as well, now I can highlight and write snide comments inside it to my hearts content. Reading it is little like being the poor helpless computer that Captain Kirk is talking to death. Luckily, I don't have to accept Captain Kirk's statements as truth, or I would be in trouble.
Anyway, While I am only halfway I couldn't wait to comment on this one (pg. 135-136).
Here he describes the Ike and Mike $10 Experiment, where two students are offered $10 by a hypothetical 3rd party, but Ike gets to decide how much the other student gets, otherwise the two of them get nothing. Even though something is better than nothing, Mike usually will take nothing over a low offer, because it isn't "fair"
Now translate this to the national economy and ask yourself the following questions:
Where do the $10 bills ultimately come from?
Why did the donor have the $10 in the first place?
Who is making the offer to share the money?
Why does the party offering the money have the right to make the offer?
What did the receiver do to deserve his share of the money?
What incentives does it create for the source of the $10 bill?
What incentives does it create for the person who receives it?
What will be the long term effects of this system?
What do property rights and choice of economic system have to do with this example?
Extra Credit:
Why is a study about monkeys that trade tokens for cucumber and get upset when one monkey gets a grape(deemed a better prize)instead not relevant to this discussion?
You'll be glad to know that I am reading Reason: Why Liberals will Win the Battle for America. I tried to get it from the library, cuase I hate giving guys like this money, but it was checked out and already had a hold on it. Just as well, now I can highlight and write snide comments inside it to my hearts content. Reading it is little like being the poor helpless computer that Captain Kirk is talking to death. Luckily, I don't have to accept Captain Kirk's statements as truth, or I would be in trouble.
Anyway, While I am only halfway I couldn't wait to comment on this one (pg. 135-136).
Here he describes the Ike and Mike $10 Experiment, where two students are offered $10 by a hypothetical 3rd party, but Ike gets to decide how much the other student gets, otherwise the two of them get nothing. Even though something is better than nothing, Mike usually will take nothing over a low offer, because it isn't "fair"
Now translate this to the national economy and ask yourself the following questions:
Where do the $10 bills ultimately come from?
Why did the donor have the $10 in the first place?
Who is making the offer to share the money?
Why does the party offering the money have the right to make the offer?
What did the receiver do to deserve his share of the money?
What incentives does it create for the source of the $10 bill?
What incentives does it create for the person who receives it?
What will be the long term effects of this system?
What do property rights and choice of economic system have to do with this example?
Extra Credit:
Why is a study about monkeys that trade tokens for cucumber and get upset when one monkey gets a grape(deemed a better prize)instead not relevant to this discussion?
Heh, I like grapes (seedless anyway), maybe I'll vote republican.
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