Archive for July 10th, 2009

Prof tries out a socialistic grading system … with predictable results

July 10, 2009

Ken’s Take:  This story has been making the email rounds.  Even if it’s just an internet legend, it makes common sense.  Project it into current political rhetoric…  

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An economics professor at Texas Tech said he had never failed a single student before but had, once, failed an entire class.

That class consensus was that socialism worked —  no one is  poor and no one is rich, a great equalizer.

The professor proposed an experiment on socialism for this class: All grades would be averaged and everyone would receive the same grade.

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.

But, as the second test rolled around, the students who studied little for the first test studied even less, and the ones who studied hard on the first test decided they wanted a free ride too; so they studied little.

The second test average was a D! No one was happy.

The average on the 3rd test  was an F. Ouch. To the students great surprise, all failed.

Test scores plummeted as bickering, blame, name calling caused hard feelings.  Finally, no one wanted to study for the benefit of anyone else.

The lesson:  socialism  ultimately fails 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.

Not very complicated, at all …

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Thanks to Sammie A.  for forwarding …

Posted in Socialism | 5 Comments »

Microsoft tries again … with Windows 7 @ intro prices

July 10, 2009

Ken’s Take: It’s almost incomprehensible that a company with Microsoft’s tech savvy and  heft could have blown it as badly as they did with Vista.  For their sake, Windows 7 had better be an acclaimed product. You can only shoot and miss so many times.

The intro pricing expense makes sense except the $10 discount is simply leaving money on the table.  Do they really think that it will motivate any incremental purchases?

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Excerpted from WSJ, Microsoft Plans Lure for Windows 7, June 26, 2009

The product

Windows 7 is a critical test of whether Microsoft can polish the reputation of its operating system after Windows Vista suffered early technical problems.

While Windows remains by far the most dominant software for running PCs, Vista’s problems were exploited relentlessly by Apple  in marketing campaigns for Macintosh computers. Macs have gained market share steadily over the past few years.

So far, early reviews of test versions of Windows 7 have been favorable.

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The pricing

Microsoft announced a plan to encourage pc users to move to a much anticipated new version of its operating system, Windows 7 …  scheduled for release in late October.

Until July 11, consumers can preorder an upgrade copy of Windows 7 Home Premium through retailers for $49.99.

Most new PCs coming out starting in October will have Windows 7 preinstalled.

Any consumers who buy new PCs running its current Windows Vista operating system from now until Jan. 31 will receive free upgrades to Windows 7. 

For consumers who bought PCs prior to the free upgrade program, Microsoft said it will charge $119.99 for Windows 7 Home Premium — expected to be the most popular version for consumers — instead of the $129.99 upgrade price for the comparable version of Windows Vista.

Full article:
http://online.wsj.com/article/SB124593802040653741.html#mod=testMod

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Posted in Mktg - Pricing, Mktg - Product & Innovation, Taxes | 1 Comment »