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Blowing Up The Death Star Didn't Destroy The Empire, Building It Did

Tyler Durden's picture




 

Submitted by Tho Bishop via The Mises Institute,

A paper written by Zachary Feinstein discussing the economic consequences of blowing up the Death Star has been making the rounds on social media. While I’m a fan of using Star Wars to teach economics, Feinstein makes a very basic economic mistake in his focus on the Death Star’s destruction.

The paper actually starts out strong. Feinstein notes that, “Economics and finance, much like the Force as explained by Jedi Master Obi-Wan Kenobi, is ‘created by all living things. It surrounds us and penetrates us; it binds the galaxy together.’” Unfortunately, the author shifts from looking at the organic economy towards the dark side of economic models and aggregates – in this case Gross Galactic Product. The paper goes on to outline the quintillions that would be spent in the construction of the Death Star, the estimated size of the galactic banking system and the bailout that would be needed to restore financial confidence after the collapse of the Empire.

While some of the points made are interesting, the paper overlooks that the real economic problem with the Death Star is that a genocidal government built it at all.

I would point both Feinstein (and Emperor Palpatine) to Henry Hazlitt’s Economic in One Lesson. In the words of Hazlitt:

The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

By simply focusing on the seen – the Death Star - Feinstein fails to consider the opportunity costs involved in the creation of the vessel in the first place. For example, the paper notes that the steel required to build the Death Star would be valued in the equivalent of hundreds of quintillions of dollars. Imagine the number of sometimes-helpful droids that could have been built by that same steel on a free galactic market if it were not reallocated to the diabolical plans of the government!

While noted science fiction fan Paul Krugman may point to the number of jobs that the Death Star created, Hazlitt is also ready with a response. Using the example of government building an unnecessary bridge:

[F]or every public job created by the bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. The employment argument of the government spenders becomes vivid, and probably for most people convincing. But there are other things that we do not see, because, alas, they have never been permitted to come into existence.

The paper also doesn’t look at the impact the Death Star’s construction would have on the galaxy’s tax burden. As Rothbard notes in War, Peace and the State, “State wars can only be waged through aggression against the taxpayer.” Since we know George Lucas’s fictional galaxy has its own version of the IRS, I believe it is safe to assume that the same aggression applies to star wars.

In fact, a closer look at Star Wars economics highlights that any hope for Galactic harmony does not come from the return of the Jedi, but from embracing capitalism. After all, a true market economy would make the construction of a Death Star nearly impossible in the first place. As Ludwig von Mises explained in The Causes of the Economic Crisis:

It is inherent in the nature of the capitalistic economy that, in the final analysis, the employment of the factors of production is aimed only toward serving the wishes of consumers.

If the Galaxy had free enterprise, is it likely that consumer demand would lead to the creation of a moon-sized battle station designed to destroy inhabited planets? Further, would anyone without the taxation powers of the Empire be able to afford such a monstrosity? Highly doubtful. In fact, the whole chain of events that led to the rise of Darth Vader and the eventual election of Jar Jar Binks was all set in place due to a dispute over burdensome tariffs!

Perhaps when the world is treated to the release of The Force Awakens, we will see Princess Leia call out, "Help Me, Ludwig von Mises. You're My Only Hope." After all, if a Mises reference is good enough for Batman – it’s good enough for Star Wars. 

 

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Tue, 12/08/2015 - 21:18 | 6897072 Cognitive Dissonance
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The only thing war is good for is creating an artificial scarcity of people, places and things. That happens when you blow things up, burn things down and sink things under the waves. That way bankers can lend more money to replace what has been destroyed.

Tue, 12/08/2015 - 21:24 | 6897105 JohnG
JohnG's picture

"I find your lack of faith.....disiturbing" - DV

Tue, 12/08/2015 - 21:33 | 6897164 ToSoft4Truth
ToSoft4Truth's picture

War makes us feel good and provides excuses. 

Tue, 12/08/2015 - 21:48 | 6897232 SILVERGEDDON
SILVERGEDDON's picture

Set you free, the truth will not, young Padawan learner.

Tue, 12/08/2015 - 23:05 | 6897569 BLOTTO
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[Han answers the intercom after comandeering an attack station]

Han Solo: [sounding official] Uh, everything's under control. Situation normal.

Voice: What happened?

Han Solo: [getting nervous] Uh, we had a slight weapons malfunction, but uh... everything's perfectly all right now. We're fine. We're all fine here now, thank you. How are you? (lol)

Voice: We're sending a squad up.

Han Solo: Uh, uh... negative, negative. We had a reactor leak here now. Give us a few minutes to lock it down. Large leak, very dangerous.

Voice: Who is this? What's your operating number?

Han Solo: Uh...

[Han shoots the intercom]

Han Solo: [muttering] Boring conversation anyway. LUKE, WE'RE GONNA HAVE COMPANY!

Wed, 12/09/2015 - 01:28 | 6898030 A Nanny Moose
A Nanny Moose's picture

Remember: Unlike the FWOTUS, Droids don't rip your arms out when they lose.

Wed, 12/09/2015 - 09:30 | 6898708 kralizec
kralizec's picture

Light sabers can cut through FWOTUS, right?

:)

Tue, 12/08/2015 - 21:48 | 6897234 SILVERGEDDON
SILVERGEDDON's picture

Set you free, the truth will not, young Padawan learner.

Wed, 12/09/2015 - 01:41 | 6898061 Jafo
Jafo's picture

Star Wars makes you feel the way you should feel without Star Wars.

Tue, 12/08/2015 - 22:28 | 6897414 Caveman93
Caveman93's picture

Summed up perfectly >>>>>>>

Clerks- "Death Star Politics"

https://www.youtube.com/watch?v=dGOVbXF7Iog

Wed, 12/09/2015 - 12:44 | 6897073 g'kar
g'kar's picture

the fed is the death star, building it only cost a few bought out votes to build

Tue, 12/08/2015 - 21:18 | 6897077 LetThemEatRand
LetThemEatRand's picture

Even in a fictional example, Mises missesTM the basic problem which is that the evil leaders of the Empire do not care much for the pros and cons of various economic models.  They want power and control.  They would happily impoverish the other residents of the galaxy to have it.   Miss that basic fact, and you have Mises telling us which economic model the Empire should have adopted.

Tue, 12/08/2015 - 21:44 | 6897217 stacking12321
stacking12321's picture

don't be an ignorant nerfherder.

every austrian economist in the galaxy that i know of, opposes the empire's domination, and is acutely aware that the empire wants power and control.

the discussion is not one of, what economic model the empire should adopt, but rather what economic model a free society should adopt once the rebels are victorious.

 

 

Tue, 12/08/2015 - 21:49 | 6897241 LetThemEatRand
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Every austrian economist in the galaxy of which I am aware fails to get the basic reality that there is always another bunch of assholes waiting in the wings even when the current Empire is defeated.  This pure free society of which you speak is great in theory so long as you ignore reality.  Any such theory is not worth discussing.

Tue, 12/08/2015 - 21:58 | 6897271 willwork4food
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I totaly agree & totaly disagree. (some people call me wierd).

By that measure we should just bend over and take it without doing anything about it. Watch our family's get raped by an economic/police state slow death willingly? Sorry, not me Rand.

I will fight them tooth & nail and hope for the best. If we allow another despot in we deserve it again...and the whole thing starts over. Let it be so.

Wed, 12/09/2015 - 05:53 | 6898346 Mediocritas
Mediocritas's picture

Then you will either lose or you will win and if you win then you might just be the one ordering the next Death Star.

Rand's point stands. Humans seek power, those that get it try to hold onto it, build it, abuse it, build a Death Star.

These Misean clowns perpetually live in a world of fantasy. In reality power shifts constantly, empires rise and they fall. Humans assist in the rising and assist in the falling with most not paying much attention to the vector they're on.

Economists dream of equilibrium, social balance and stability and insist that School X of economic thought is the panacaea, "if only we would follow it"! That's because they're morons who don't bother to observe reality and fail to understand human nature. How funny that is because an economy is nothing more than applied mass psychology, so failure to understand human psychology means an utter failure to understand economics.

Ask any biologist whether populations of predators and prey reach an equilibrium state.

Tue, 12/08/2015 - 23:45 | 6897685 stacking12321
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"This pure free society of which you speak is great in theory so long as you ignore reality."

i would argue that it is actually you that's ignoring reality.

voluntary societies can and do exist on a small scale.

the problem is just finding a way for them to scale up without being trampled by power-hungry warmongers.

it's a difficult problem to solve to be sure, but it's not an unsolveable one, i'm convinced it can be done and i intend to try.

if you prefer to throw your hands up in the air and say it's too hard, it can't be done, i give up, and live as a serf under imperial control, that is your right.

Wed, 12/09/2015 - 01:35 | 6898044 A Nanny Moose
A Nanny Moose's picture

Again...your panties are all in a bunch because a small group of people endeavor to eslave everybody else. We have that now, it is call The Fucking State.

When do we pull on the fucking big boy pants, get started with the whole freedom idea?

Tue, 12/08/2015 - 23:56 | 6897730 Buck Johnson
Buck Johnson's picture

Which they did and they also used slaves to help build the deathstar.  Remember the Wookies planet was captured and defeated and much of their population along with prisoners and other worlds where used as free labor to help in the construction.  Also they used alot of droids from small to massive size in the millions to help.  Now imagine them working 24 hours a day 7 days a week at a sustained pace when they bring in the big forms and they wire and weld the forms into place.  It can be done.  As for the resources remember there are asteroids and planets and also junk planets (go to wookipedia best starwars wiki ever) that if they want already processed metals they can get it from there and melt down.  Or asteroids that haven't been mined and have resources.  Also remember a planet may not be habitable but it could have alot of resources and that planet could be processed.

 

Tue, 12/08/2015 - 21:23 | 6897101 Mr. Schmilkies
Mr. Schmilkies's picture
  “I find your lack of faith disturbing.” - Darth Yellen
Tue, 12/08/2015 - 21:26 | 6897117 harrybrown
harrybrown's picture

is this by any chance written by a jew....

Tue, 12/08/2015 - 21:28 | 6897135 -.-
-.-'s picture

Just the musical composition and arrangement of scores. And, the production and studio work. And, the, well, you get the point.

Tue, 12/08/2015 - 21:42 | 6897207 stacking12321
stacking12321's picture

come join the dark side, your hatred of the jew has made you strong!

Tue, 12/08/2015 - 21:32 | 6897150 ebworthen
ebworthen's picture

If we build the Death Star, the FED can put rates at 7% and there will prosperity for everyone! Two chickens in every pot!

What's it going to take, $100 Trillion?  So what!  If $18 Trillion is sustainable, so is $118 Trillion!

Tue, 12/08/2015 - 21:31 | 6897153 THE COIN
THE COIN's picture

Silly Rabbit. King Kong, the Debt Trader, destroyed the Empire State.

Tue, 12/08/2015 - 21:40 | 6897192 Ms No
Ms No's picture

Isn't that the truth.  The Jedi mind trick is convincing the people that are on the end of Jabba's chain that they are working under a free system that intends to raise the standard of living for as many as possible and that the Death Star ever needed to be built at all.  Once the people spend all of their wealth and energy building the damn thing and their fellow man have all been brainwashed into being strom troopers the death star gets destroyed.  The Darth Vaders slink off to parasite and destroy another galaxy or lie dormant until the critical mass of stupidity is reached and they can strike again.

Tue, 12/08/2015 - 22:56 | 6897527 AnonG-Man
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“The (Star Wars) Empire is like America ten years from now.” – George Lucas, 1973

“How do democracies get turned into dictatorships? The democracies aren’t overthrown; they’re given away… Star Wars was really about the Vietnam War.” – George Lucas, creator of Star Wars

https://www.youtube.com/watch?v=Lt8Bf6oNvuo

Tue, 12/08/2015 - 23:07 | 6897578 Ms No
Ms No's picture

I read Corey Feldman's book that outed Hollywood pedophelia and he made a point to say that Lucas was always good to the kids and wasn't a perv, he didn't mention any other producers.  He said as a child actor he was completely surrounded by pedophiles.

Tue, 12/08/2015 - 21:41 | 6897203 Sanity Bear
Sanity Bear's picture

"If the Galaxy had free enterprise, is it likely that consumer demand would lead to the creation of a moon-sized battle station designed to destroy inhabited planets?"

 

Blan-k'feen Loyd might buy one as a status symbol.

Tue, 12/08/2015 - 21:42 | 6897210 Goldilocks
Goldilocks's picture

MICROWAVE WEAPONRY'S USE ON PEOPLE EXPLAINED BY DR BARRIE TROWER
http://www.youtube.com/watch?v=aMMEQNnSZIo (35:43)

Tue, 12/08/2015 - 21:48 | 6897235 the_narrator
the_narrator's picture

It wasn't all bad though.  The firm that owned all the credit default swaps on Alderon mortgage backed securities got paid back 100 cents on the dollar.  Good thing they had their man strategically placed as head of the imperial treasury.

Wed, 12/09/2015 - 01:39 | 6898053 A Nanny Moose
A Nanny Moose's picture

Who owned the mortgage of the guy in a position to shout orders to the people with their hands on the big red fucking button.

Goddamit we are fucked.

Tue, 12/08/2015 - 21:54 | 6897263 Heterodox economics
Heterodox economics's picture

There is interesting economics in one of my favoirite movies, Being There, starring Peter Sellars:

 

President "Bobby": Mr. Gardner, do you agree with Ben, or do you think that we can stimulate growth through temporary incentives? 

[Long pause]

Chance the Gardener: As long as the roots are not severed, all is well. And all will be well in the garden. 

President "Bobby": In the garden. 

Chance the Gardener: Yes. In the garden, growth has it seasons. First comes spring and summer, but then we have fall and winter. And then we get spring and summer again. 

President "Bobby": Spring and summer. 

Chance the Gardener: Yes. 

President "Bobby": Then fall and winter. 

Chance the Gardener: Yes. 

Benjamin Rand: I think what our insightful young friend is saying is that we welcome the inevitable seasons of nature, but we're upset by the seasons of our economy. 

Chance the Gardener: Yes! There will be growth in the spring! 

Benjamin Rand: Hmm! 

Chance the Gardener: Hmm! 

President "Bobby": Hm. Well, Mr. Gardner, I must admit that is one of the most refreshing and optimistic statements I've heard in a very, very long time. 

[Benjamin Rand applauds]

President "Bobby": I admire your good, solid sense. That's precisely what we lack on Capitol Hill.

Tue, 12/08/2015 - 22:02 | 6897286 willwork4food
willwork4food's picture

Love it.

Tue, 12/08/2015 - 22:29 | 6897417 the_narrator
the_narrator's picture

So we're talking Kondratiev Waves ?

Tue, 12/08/2015 - 22:00 | 6897276 Goldilocks
Goldilocks's picture

GE "We bring good things to life" commercial (1986)
http://www.youtube.com/watch?v=oAjIy3uPmv4 (1:00)

~//~

Atomic Waste Reported Leaking in Ocean Sanctuary Off California
http://www.nytimes.com/1990/05/07/us/atomic-waste-reported-leaking-in-oc...

~//~

Fukushima: not the only source of pollution off the US west coast (topic jumps around ~@9:00)

Proof Directed Energy Weapons took down the Twin Towers
http://www.youtube.com/watch?v=0TtNJdXWkpo (24:12)

Tue, 12/08/2015 - 22:03 | 6897284 SweetDoug
SweetDoug's picture

'
'
'
'
'
'
They're both wrong, and so was Lucas.

3D printing, automation, robots, AI and solar power, thorium, LENR and free asteroids for the material produced the Death Star for next to nothing.

Nobody understands 3000 AD economics anymore.

If you'd like some lessons, you know where to reach me…

•j-<
V-V

Tue, 12/08/2015 - 22:03 | 6897290 Rabbi Blitzstein
Rabbi Blitzstein's picture

LOL!!! Praise En-Sof. How we revel in deluding the goyim. Star Wars is a completely produced jewish paradigm. And the article’s author is a jew. Go figure. The “fed” is an entirely jew mafia created entity owned and operated by international jewry. Look it up! We have you goyim so flummoxed that you don’t even know what to believe anymore. Oy vey! We create fictions ad infinitum until your head spins. We control the meaning of words, therefore your thinking, therefore your actions. You stupid goyim make us laugh to death. You are nothing but soulless, mindless cattle. Hahaha! It really is all about the ‘Death Star’ you stupid white goys. Jewry truly is your death star.

 

Tue, 12/08/2015 - 22:04 | 6897291 YHC-FTSE
YHC-FTSE's picture

The Death Star was built to destroy planets - an emperor's mobile edifice of power to keep the various factions in its sphere of influence under control by the threat of genocide. Sounds familiar when one considers that the American empire of chaos and its Federal reserve exist to pauperize the populace by flooding the world's capital markets with liquidity that flows only to its acolytes and any faction that will not bend to the rule of central banking is destroyed with propaganda, sanctions and eventually bombs. The Death Star made no economic sense and could be seen as one man's tower of hubris, a steel ball that squirted death out of its tiny little phalic orifice. That's central planning for you, QE its "big gun".

"a true market economy would make the construction of a Death Star nearly impossible in the first place."

I disagree that a similar structure could not have been built in a true market economy. If the idea and purpose were attractive enough, I dare say the Death Star could have been crowdfunded - a democratic participatory capitalism - to serve as a luxury space hotel or an exploratory vessel for the colonization of planets.

Wed, 12/09/2015 - 01:14 | 6897998 Implied Violins
Implied Violins's picture

It could be done on the cheap by simply hollowing out a planet, like Pluto:

http://knowyourmeme.com/photos/992365-pluto

Simply mine the interior, harden the exterior and add a freaking large gun. Presto: budget death star. Moving it might be a bitch, though...

Tue, 12/08/2015 - 22:27 | 6897342 V for ...
V for ...'s picture

Capitalism is the least worst system known to humankind, and it has killed the least; prospered the most. Unfortunately, collectivists and monopolists want everything. All of it.

How kiddult has the world become when it needs Hollyweird and its silly ninny propagandist nazionism to mould its language and thought. Star Wars...tsk...oh, reeeeaaalllly.

Reject the Talmud and its pet plaything Hollyweird.  Support the Constitution. Keep the guns. Not for some fantasy, but for the USA, the last bastion against collectivists and international financiers of no fixed abode; their criminally insane want of a one world government, fascism for all; new feudalism for all. Creepy weak Ashkenazi cowering, licking jackboots, again, as per their conditioned response, their Talmud.

 

That is not good enough for Hanukkah or Christmas or any season of light in winter when every people have their own traditions of lighting up the darkness.

'Dare to know.' (Erasmus)

Tue, 12/08/2015 - 22:28 | 6897406 jmaloy5365
jmaloy5365's picture

But one must think that with an unlimited amount of money almost anything can be created. And if mankind wanted to get off this planet and build warp drives and star ships there would have to be an unlimited amount of money. And that is the EXACT REASON we are not there already. 

Tue, 12/08/2015 - 22:38 | 6897416 V for ...
V for ...'s picture

Forgot the sarc tag? ;-)

Warp speed, Greenspan!

She's gonna blow, Cap'n.

No worries, Yellen. QE to infinity and beyond!!!!!!!!!!

All for the Federation of Moneychangers, and everyone else to rot, declares the Cling On.

Instruct comrade SpeilBurg to sell the story: how the usurious won their paper Empire! And lost everything worth living for.

Tue, 12/08/2015 - 22:38 | 6897460 Pipetex
Pipetex's picture

Too much Ayn Rand...

Pure capitalism could never create monstruosities like de Death Star or the East India Company?

 

Tue, 12/08/2015 - 22:46 | 6897478 V for ...
V for ...'s picture

There is nothing pure about adults. Simply restraining their worst traits would be enough to create a better world, imo.

It is all in the Constitution, written by worldly, erudite  men who defied the old world order and its rotten City of London...and won,  having risked their lives and everything they owned.

Now these arriveste make their Hollyweird version of life, pornography, endless war; mere debt slaves, beholden to the old world order, moneychangers who employ and deploy them for paper, words. Yet they will whine and rent their clothes when it all comes tumbling down on them again, and they look for someone else to blame or go to war as it amuses them, pays for them. Wastrels.

Tue, 12/08/2015 - 23:56 | 6897726 PoasterToaster
PoasterToaster's picture

Nope.  Not that "capitalism" is a great descriptor for your strawman.

Tue, 12/08/2015 - 23:00 | 6897543 Goldilocks
Goldilocks's picture

Project Camelot interviews Marcia Schafer with Bob Dean
http://www.youtube.com/watch?v=hVibbzkhMLk (20:55)  ... (~@11:00)

"And particularly what I do is target business entrepreneurs, for the space revolution, which is already here...   "

"We've got Richard Branson, many of the high tech thrillyonares as they've been termed, who have invested heavily in space commercialization."

"So as we got out on a business enterprise and an entrepreneur spirit, we can't go there without seeing who's out there, it's inevitable  too.  "

"...work with private entrepreneurs and getting them ready with their strategic plans, getting them ready for how to reposition for all the multiple opportunities that will be there when we re-embrace space travel and our role in it ...."

Tue, 12/08/2015 - 23:01 | 6897548 DaveA
DaveA's picture

On the other hand, vastly less wealth will be lost in interstellar warfare, because any sane planet considering rebellion against the Empire will see the example made of Alderaan and say, "maybe we'll just pay our tribute instead."

Tue, 12/08/2015 - 23:12 | 6897592 Youri Carma
Youri Carma's picture

It would come as great disappointment, when we finally are able to go into space after we've mastered antigravity, only to discover that it isn't any different there than here on planet earth only on a bigger scale where the alien races are at each others throat, fighting each other.

Tue, 12/08/2015 - 23:18 | 6897610 Ms No
Ms No's picture

Why the hell do we need big banks again?  I get that we wouldn't be able to have big war machines, giant industrial corporations and monopolies but what would we be missing?  Small local banks or state CBs can still fund small farms and businesses right?  If the CBs and big banks were to go away tomorrow we would be in chaos for some time no doubt but doesn't that bring us back to the building of the Death Star argument?   

Wed, 12/09/2015 - 01:10 | 6897988 surf@jm
surf@jm's picture

LOL!.....From building stone knives and bear skins, to death stars, do humans ever really change?.....There always has to be an enemy to fight against, to keep the masses preoccupied.......or just defer to bread and circus`s in the interim.....You know....EBT and the NFL, or WWE......No wonder aliens don`t want to have any contact.....would you?........

Wed, 12/09/2015 - 05:25 | 6898331 CHX
CHX's picture

Death (st)ars.

Wed, 12/09/2015 - 15:32 | 6900672 EBT excepted
EBT excepted's picture

how to kill d'planets be open up da hatch and send down a feww billun FSA recpients o' d'wefare...

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