The Don does Economics

Here’s an interesting take on economic and legal lessons that can be drawn from The Godfather.

A choice quote:

Everyone remembers Don Corleone’s famous saying that he’s going to make “an offer you can’t refuse.” But for some reason, people forget that the Don also said that “a lawyer with his brief case can steal more than a hundred men with guns” (Godfather, pbk. edition, 52). One of the recurring themes of the novel is that people turn to the Mafia for help because of the corrupt and self-serving nature of many political and legal institutions that systematically allowed elites to plunder the politically weak. Puzo recognized, as sociologist Diego Gambetta explained more systematically, that the Sicilian Mafia flourished because it provided better “protection” against crime and violations of property and contract rights than did the official authorities, who generally protected only the politically powerful elite. To a lesser extent, a similar dynamic enabled the America Mafia to emerge in Italian immigrant communities in the early 1900s, as Puzo vividly portrayed in his chapter on the rise of Don Corleone.

Puzo also shows how Prohibition and afterwards the War on Drugs, provided opportunities for organized crime to grow and flourish. It was Prohibition that enabled the Godfather to go from being an “ordinary . . . businessman” to a “great Don in the world of criminal enterprise” (pg. 213). And, of course, the great Mob war that forms the central plot of the book is a conflict over Don Corleone’s unwillingness to help other crime families expand into the illegal drug business.

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