Scarface Economics, Part Two

Once again I was probably one of the few people that would notice how much Economics is in the famous movie Scarface. Do not worry it slowly dies away as Scarface begins his descent to his demise.

At one point, he is negotiating with a producer of cocaine and they are not just price but also quantity. The producer needs Scarface to be a steady distributor for him so that he can expand production. This shows both mutually beneficial trade and how vertical industries work. Why you have to go to Best Buy to buy a CD and not just the CD manufacturer. They even work out the probability that 1 out of every 9 moves get lost or arrested.

Next, is when Scarface is sitting in his bath watching T.V. the issue of legalizing drugs comes up the new anchor disagrees. Surprisingly, Scarface supports the legalization because he probably thinks he can make just as much money and not have to hide it. This was a point in with Scarface did economic calculation. He thought to himself the costs that he has to incur from hiding his money and operation compared to the taxes. He makes a funny public choice argument and says they will never legalize it because then they can look like they are the good guys fighting the bad guys. This will obviously help them get reelected but Scarface says that they are the bad guys.

My favorite part of the movie was also when he was sitting in the tub, he is mad about how much he is being charged by the bank to keep his money hidden. His wife gets upset that he is so stingy and complains about penny’s. She then proceeds to tell him that he would have been nicer if someone gave him the money. His partner concludes the same thing. This is an interesting topic. The boss is always seen as doing the least amount of work and he is "getting paid way to much." But what people do not account for his responsibility.

To read in the last paragraph more read "The Anti-Capitalistic Mentality" by Ludwig Von Mises.

If anyone else noticed economics in this movie, let me know… If not you will have a new way of looking at this movie when you watch it.

Published in: on April 28, 2008 at 6:04 pm  Leave a Comment  

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