Godfather Economics

As most people know the Mafia is a highly recognized and dramatized organization in modern American history. But the fact they are so famous is because of government regulation. They focused on things like gambling, prostitution, and alcohol during prohibition.

In the movie "The Godfather," Vito warns against going into drug trafficking. He believes that this is a scum of all scum industries to get in. I believe this was great foreshadowing to the fact that in the real world, organized crime was losing its politics connections and the omerta or code of silence was being torn away by going this route.

Vito alluded to when the politicians and police that you are buying off see you go into narcotics compared to gambling, they lose closeness to you. As the police turn their backs on you, they prosecute you more which causes the omerta to fail. Now because it is harder to buy off the police. Give the policeman twenty bucks to look away on gambling is very different when we are talking heroin.The police then adopted from politicians somewhat unconstitutional laws, like the RICO Act, that allowed police to wiretap for little reason.

What would happen if we allowed all of the things above to be legal? There would be no Mafia.

The Mafia is on of the most amazing entrepreneurial activities ever seen. They took advantage of the high rate of returns of illegal industries. They also took advantage of the crappy police and court systems, like we see at the beginning of the movie, where the funeral home owner complains to the Don that he wants justice. The problem was his daughter was raped and the boys who did it got off easily by the court system. (As seen in picture.)

These families set up their own justice systems in order to protect themselves from the government given ones. There would be no need for them here if the courts and police were effective.

Why does Michael want to move the family to Nevada? Because everything listed above minus the narcotics are legal. He says that the family is going to become "legitimate" when really they are going to do the same things just under a different legal framework.

Sidenote: Offer you cannot refuse is a fallacy. This is like saying you cannot substitute your way out of his offer. You might get death but death is still a substitute.

Published in: on April 4, 2008 at 7:28 am  Comments (2)  

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2 CommentsLeave a comment

  1. Good work Don Coreleone. we need to bring back the mafia because things ran better during their reign.

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