Tuesday, September 30, 2008

Economic Movie Quotes

I was looking at some quotes from Paul Newman characters to reflect on his life and work, when I came across these gems from Butch Cassidy and the Sundance Kid, I think I will work them into an Econ class one day.

Butch Cassidy: What happened to the old bank? It was beautiful.
Guard: People kept robbing it.
Butch Cassidy: Small price to pay for beauty.
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Butch Cassidy: If he'd just pay me what he's spending to make me stop robbing him, I'd stop robbing him.
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Butch Cassidy: You know, it could be worse. You get a lot more for your money in Bolivia, I checked on it.
Sundance Kid: What could they have here that you could possibly want to buy?

...Questions to follow.

4 comments:

Josh Knox said...

1) How would the beauty of a bank be counted in its assets column?

2) What economic problem does Butch fail to acknowledge?

3) How is the argument between Butch and Sundance explained represented in the Quantity Theory of Money?

George Goodling said...

Beauty, for a bank, can only be counted in the asset column as it correlates to generating business and investment.

Butch does not acknowledge the affects of the free rider system. If he was to be paid to stop robbing the bank others would demand the same treatment or rob the bank themselves. Or would they? I feel like I design an experiment around this..

Money is just a store of value. If there is no value in what you can exchange your money for you might as well use it to wipe your ....

How did I do boss? I want to see your lesson plans. Love the quotes by the way.

Josh Knox said...

1) The beauty of the bank would contribute to its value as property and thus show up as capital.

2) Assymetrical information prevents the banker doesn't know how many other people would rob him if he were not vigilant. Paying robbers would result in moral hazard as more people would attempt to rob the bank in order to be paid off.

3) Quantity Theory: MV=PQ
Butch claims P is small, Sundance claims Q is small.

Josh Knox said...

http://www.boston.com/bostonglobe/ideas/brainiac/2010/03/butch_cassidy_a.html?camp=localsearch:on:twit:ideas

Compared with the totality of knowledge which is continually utilized in the evolution of a dynamic civilization, the difference between the knowledge that the wisest and that which the most ignorant individual can deliberately employ is comparatively insignificant. ~Fredrich Hayek in The Constitution of Liberty