Capitalism, Socialism, et all

I received the following email today:

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

The class (students) insisted that socialism worked since 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 will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A."

After the first test the grades were averaged and everyone got a B. The students who had studied hard were upset while the students who had studied very little were happy.

But, as the second test rolled around, the students who had studied little studied even less and the ones who had studied hard decided that since they couldn't make an A, they also studied less. The second Test average was a D.

No one was happy. When the 3rd test rolled around the average grade was an F.

The scores never increased as bickering, blame, name calling, all resulted in hard feelings and no one would study for anyone else.

To their great surprise all failed. The professor told them that socialism would ultimately fail because the harder people try to succeed the greater their reward (capitalism) but when a government takes all the reward away (socialism) no one will try or succeed.
***End***

I think this story is imaginary and hence not right. There are just too many implausible assumptions. I'll list some, making one of my own assumptions, that this story is propagated by an anti-socialism capitalist.

1. It assumes that everyone slacks which is the worst case scenario. In the best case scenario, everyone would have studied harder cause everyone would have realized that by studying a little harder everyone would get an A.

2. Since the entire class believed in Socialism, chances are the A graders would have helped the others to improve by "sharing" their knowledge and tricks and tips for exams, etc. It assumes that students gave up their beliefs altogether after just 1 test.

3. It also assumes that most students in the class were A graders and a few few slackers, how else would they average B in the first test?! So with 1 + 2 + 3, this was the perfect class model for socialism to succeed.

Here's another implausible capitalist scenario for the class. The teacher likes the A grade student. So he pays more attention to them and ignores the F ones. He answers more questions of the A students and less of the F ones. He spends extra time with the A students after school hours to make them A+ where as the F ones suffer due to negligence and become F-. Since the professor already likes the A+ students he forgives a lot of their follies, and gives them a lot more opportunities. He also rewards them more handsomely for every little achievement. Infact none of their achievements are little any more. He also alters his teaching style to suit the A graders so that they can become A+++. All the time the F graders are being constantly ignored and becoming F---. The professor himself looks like a Professor+++ because he has some really bright A+++ students. Other Professors quicly learn the reason behind this Professors success and start replicating the same in their classes. So what we now have is a bunch of A+++s all over the place, who are, in fact, simply As, but think of themselves as A+++++++s, only hang around with other A+++++++s, and are completely oblivious to all the F----------s around them. The F graders grow up to envy the A graders, and the envy grows to envy++++++++ (or envy--------, if you like it that way) and eventually declare an all out war against the A graders. All the A graders and F graders fight each other all the time, and eventually everyone kills everyone, and everyone dies!