Inequality in America.

There is much talk these days about inequality in America. Exactly what that means I am not sure.  Seems to be that the "poor" should get more just because they are poor, and the rich should get less just because they are rich. In other words one moves up the other moved down, or a mathematical way is everyone gets basically the same or AVERAGE.

People seem to like averages. Why I don't know, but averages can be very misleading.

I recently read an article about a College economics professor using "averages" to illustrate a system where no one would be poor, and no one would be rich, by substituting grades for money. In the beginning on the first test he averaged all grades and got an average of "B". So the "A" students were not happy, but the "D" students were happy. Then the second test resulted in a "D" because the high achievers did not try, and the low achievers did not care. Eventually they all got an "F" average.

Examples of average...

1: What is the average of a 10 year boy and 110 year girl? Simple right, it's a 60 year person. See my point?

2: Here is my favorite. What is the average of a person that stands in a bucket of ice water, bends over and sticks his/her head into a 600 degree oven? Give up? Well as far as I can calculate that person is an average Ass.

So to use the average to illustrate the system of our society is not very valid, at least in my opinion. Which if you read my profile is what this whole Blog is.

Anyway what I took from this article is that if as a society we try to make us "average" that we will fail. Well that I agree. But to use average is a poor way to illustrate. It also implies that the "poor" are out for a free ride, and that the "rich" are being taken advantage of. Well that may be the case or it may not be.

As a society, I believe we are also a "family", a rather large one for sure but family it is.

Here is another example of society. After reading and studying it I will ask "What would you do if you were in group "A"? Group "B"? Group "C"? Group "D"?

Let's say you are in this same class that the College economics teacher teaches. There are 99 other students in the same class. You are all studying for your PhD, and you have all been classmates since the day you entered College. Some have dropped out along the way but the 100 of you that are left are the best of friends.

Now, I think you would agree that we are all not equal, that try as we may each of us gravitates to our own level of achievement. Some of us are simply smarter than others. We were simply born that way. As an example no matter how hard I tried, I could never grasp the concept of Algebra. Yep, but some of you will say it's pretty simple. Right? Well that just proves my point.

Now, back to the College class...

 Let's start with grade levels, and let's say that each person will be awarded (MONEY -$$$) based on their grade (achievement)

	Level	Level	Level	Level
Grade Levels	A	B	C	D
Reward for Achievement (per person)	$20,000	$15,000	$10,000	$5,000
Number of students At grade level	10	60	20	10
Reward for Achievement (as a group)	$200,000	$900,000	$200,000	$50,000

 Now before we go on let's look at averages once more.

The average reward is $12,500, the average number of students is 25 and the average reward for the group is $337,500. So what does that tell you? Well by itself nothing really. Averages are misleading.

Now, let's say that after graduation all 100 graduates decide to celebrate the success as all have achieved their goal of PhD (which stands for "Piled Higher and Deeper" in case you did not know).

To celebrate all these GOOD FRIENDS decide to take a Cruise to the Caribbean. They each pay their own way, and here is how it works out...
 

PER PERSON	A	B	C	D
Cruise cost	$3,000	$3,000	$3,000	$3,000
Transportation to Pier	$1,000	$1,000	$1,000	$1,000
TOTAL (excluding enjoyment)	$4,000	$4,000	$4,000	$4,000
Money Left over For Enjoyment	$16,000	$11,000	$6,000	$1,000

 BUT along the way, out in the middle of the Caribbean Ocean disaster strikes and the ship is sinking, and for sure will sink. Here is the scenario...

 

Ship starts to sink	Grade	Grade	Grade	Grade
PER PERSON	A	B	C	D
Cost to be rescued	$8,000	$8,000	$8,000	$8,000
Cash left over after rescue	$8,000	$3,000	($2,000)	($7,000)
Cost to get back home	$1,000	$1,000	$1,000	$1,000
Money left over	$7,000	$2,000	($3,000)	($8,000)
		$9,000		($11,000)

 Now, if you study, you will see that the persons that scored "C" and "D" do not have enough money to pay for the rescue, (and will go down with ship) much less the cost to get back home. "A" and "B", as you can see will each have plenty of money left even after they get back home. You can also see that "A" has enough money to help out "D", at least from drowning even if not able to get him back home. As well you can see that "B" could also help out "C" the same way. But if they do it then "A" & "B" will be broke when they get home, but "C" and "D" will at least be alive.

Now, let's look at the same scenario in a different manor. Because we are a society (family) what if they pool their money?

Let's see...

Remember the number of students in each grade group?

	Level	Level	Level	Level
Grade Levels	A	B	C	D
Number of students At grade level	10	60	20	10

So now the scenario is like this...

	Grade	Grade	Grade	Grade
PER GROUP	A	B	C	D
Cost for cruise	$40,000	$240,000	$80,000	$40,000
Money Left over For Enjoyment	$160,000	$660,000	$120,000	$10,000
Ship starts to sink
Cost to be rescued	$80,000	$480,000	$160,000	$80,000
Cash left over after rescue	$80,000	$180,000	($40,000)	($70,000)
Cost to get back home	$10,000	$60,000	$20,000	$10,000
Money left over	$70,000	$120,000	($60,000)	($80,000)
		$190,000		($140,000)

 Now, as you can see that when pooled "A" & "B" will have $190,000 left when they get back home. Groups "C" & "D" need $140,000 total to not only be rescued, but also get back home. So, if they wanted to "A" & "B" could help out "C" & "D", and all would be safe and alive, and on top of that "A" & "B" would still have $50,000 left over to divide 70 ways for $714.29 each. Not much, but at least they are all safe, are all still good friends, and are on the road to the "PhD'ing". How much deeper is up to them.

To me the second scenario is how our society should work. But what about you?

Now, back to my question earlier... "What would you do if you were in group "A"? Group "B"? Group "C"? Group "D"?

Oh... remember what I said about Algebra? So if my math is off, it's the fault of this Damn Computer... not me.

Just Say'n