Essay 48: Bureau of Economic Analysis Materials for Every Student Regardless of Major

We mentioned in a previous essay that an economist receives certain Bureau of Economic Analysis and Bureau of Labor Statistics updates and that allows them to “guesstimate” next year’s GDP growth by adding up average labor productivity growth (Y/L) to labor force growth. Remember Y (GDP) equals Y/L multiplied by L and percentage growth in Y is approximately equal to the sum of the other two variables: Y/L and L.  The sum approximates GDP growth and requires no mental gymnastics with complex mathematics of any kind.  A wise student would learn what’s on offer by these government update services and realize simple familiarity is half the game in everything.  The economics pundits are not ten feet tall.  They simply follow simple materials that the typical student does not have and has no idea that these materials exist.

BEA News:  Gross Domestic Product by Industry, 2nd quarter 2019 and annual update:

“The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today:

“Professional, scientific, and technical services; real estate and rental and leasing; and mining were the leading contributors to the increase in U.S. economic growth in the second quarter of 2019. The private goods‐ and services‐producing industries, as well as the government sector, contributed to the increase.  Overall, 14 of 22 industry groups contributed to the 2.0 percent increase in real GDP in the second quarter.”

The full text of the release [archived PDF] on BEA’s website can be found here

The Bureau of Economic Analysis provides this service to you at no charge.  Visit us on the Web at www.bea.gov.  All you will need is your e-mail address.  If you have questions or need assistance, please e-mail subscribe@bea.gov

Essay 47: Novels as a Kind of University Demonstrating Storms of Global Finance and Technification

Edith Wharton began writing The Age of Innocence in 1917 as a way of recalling and criticizing the world of her youth, which had not yet experienced the devastation of World War I (1914–18).  Beginning in July 1920, the novel was published in serial form in New York’s monthly Pictorial Review.

The centrality of finance and technical change can be seen. We are reminded of the very first line in The Magnifcent Ambersons of Booth Tarkington, which tells the reader that the basis of the magnificence of the Ambersons was established when they somehow benefited from the 1873 financial crisis which destroyed many others. (Whether the Ambersons were shrewd or lucky or wily is not clarified.)

The Age of Innocence is set in New York in the 1870s and the financial storm and “techno-storm” become vital:

The Panic of 1873:

In The Age of Innocence, the investment bank run by Julius Beaufort collapses, bringing shame upon him and his wife and throwing New York into a tizzy. Beaufort’s business failure is a fictionalized version of the Panic of 1873, industrial capitalism’s first worldwide depression. Then, the United States backed its currency with both silver and gold, but when Germany and several other countries stopped using silver to back their currency, the price of silver fell precipitously, devaluing U.S. currency. The U.S. Treasury made matters worse by releasing large amounts of paper money into the economy. Speculators and bankers now had to immediately pay off their debts with gold.

In 1873, a prominent investment banker by the name of Jay Cooke went bankrupt, the effects rippled throughout the entire U.S. economy, and panic ensued. Trading was suspended for two weeks on the New York Stock Exchange as company after company failed, wages dropped precipitously, and unemployment spiked. The rise of the labor movement can be traced to the widespread unrest and economic instability set off by the panic. Additionally, the panic allowed a few of the wealthiest businessmen—such as Andrew Carnegie, John Rockefeller, and Cyrus McCormick, who retained access to valuable capital—to vastly increase their wealth and snuff out competitors.

Technological Advancements

Characters in The Age of Innocence are aware their world is about to be forever changed by the culture of outsiders, brought to them in part by advancements in technology. Although inventions like the telephone were on the horizon, they seemed improbably fantastic to people living in the early 1870s world of telegrams and horse-drawn carriages. However, in the final chapter, Wharton depicts Newland Archer living in a world that has been significantly altered by these technologies, a mere quarter century later.

In 1876, for example, American inventor Alexander Graham Bell (1847-1922) patented an early telephone and wowed audiences by demonstrating the world’s first telephone call by placing a call from one telegraph station to another five miles away.  The Western Union company refused to buy Bell’s telephone patent, claiming his invention would amount to no more than a novelty. However, the first telephone line was built in 1877-78, and after that, telephone usage skyrocketed.  At the start of the 1880s, there were almost 50,000 telephones in use, a number that swelled to over half a million by the turn of the century.

A similar large-scale change was the invention and development of electricity. Although the first electric light was developed in 1835, it was not until 1879 that American inventor Thomas Edison (1847-1931) developed and patented a light bulb with a life span of 15 hours. Edison’s work also focused on the problems of electrical generation and conductivity.

At the same time that communication was becoming easier and the day was lengthened artificially through electric lighting, the distance between continents was shortened by advances in turbine steam engines

In the 1860s, it took between eight and nine days to cross the Atlantic Ocean; by 1907, the Mauretania (the ship that Dallas and Newland Archer take to Europe in the last chapter) makes the voyage in half that time.  This was a contributing factor to the great influx of European immigrants who arrived in the United States during the late 19th and early 20th centuries.

In Chapter 29, Newland contemplates the “brotherhood of visionaries,” who predict a train tunnel under the Hudson River as well as “ships that would cross the Atlantic in five days … and other Arabian Night marvels.” In 1904, excavation for train tunnels under the Hudson began, directed by Alexander Cassatt, president of the Pennsylvania Railroad. In 1910, New York’s Penn Station opened and began receiving traffic from electric trains that traveled through the tunnels.

Notice that the novel The Magnificent Ambersons is from 1918, Edith Wharton’s Age of Innocence from 1920. In each, the personal storms of private emotion are somewhat carried along and swept up into the storms coming from national and even global finance (1873 caused a tremendous crash in Germany and Austria called the “Grunderkrach” [founder’s crash]) as well as techno-waves that are very baffling to the people of the time.

Essay 46: Novelists As Prophetic?

There are three French novelists who say prophetic things in their writings, predictions that are based on intuition and sensibility and not on any formal forecasting at all, but far-seeing nevertheless. Consider these three:

Jules Verne (died in 1905):

Paris in the Twentieth Century (FrenchParis au XXe siècle) is a science fiction novel by Jules Verne. The book presents Paris in August 1960, 97 years in Verne’s future, where society places value only on business and technology.

Written in 1863 but first published 131 years later (1994), the novel follows a young man who struggles unsuccessfully to live in a technologically advanced, but culturally backwards world.  Often referred to as Verne’s “lost novel,” the work paints a grim, dystopian view of a technological future civilization.

Verne’s predictions for 1960:

The book’s description of the technology of 1960 was in some ways remarkably close to actual 1960s technology.

The book described in detail advances such as cars powered by internal combustion engines (“gas-cabs”) together with the necessary supporting infrastructure such as gas stations and paved asphalt roads, elevated and underground passenger train systems and high-speed trains powered by magnetism and compressed air, skyscrapers, electric lights that illuminate entire cities at night, fax machines (“picture-telegraphs”), elevators, primitive computers which can send messages to each other as part of a network somewhat resembling the Internet (described as sophisticated electrically powered mechanical calculators which can send information to each other across vast distances), the utilization of wind power, automated security systems, the electric chair, and remotely-controlled weapons systems, as well as weapons destructive enough to make war unthinkable.

The book also predicts the growth of suburbs and mass-produced higher education (the opening scene has Dufrénoy attending a mass graduation of 250,000 students), department stores, and massive hotels. A version of feminism has also arisen in society, with women moving into the workplace and a rise in illegitimate births. It also makes accurate predictions of 20th-century music, predicting the rise of electronic music, and describes a musical instrument similar to a synthesizer, and the replacement of classical music performances with a recorded music industry.  It predicts that the entertainment industry would be dominated by lewd stage plays, often involving nudity and sexually explicit scenes.

Flaubert (died in 1880):

In his posthumous novel published in 1881, Bouvard and Pécuchet, a satire on random knowledge-seeking, the two clerks of the book title, conclude that sometime in the future, America will “take over” the world or its hegemonial leadership. To see that America would supplant Europe, in those days, is quite “counterintuitive.”

Bouvard and Pécuchet details the adventures of two Parisian copy-clerks, François Denys Bartholomée Bouvard and Juste Romain Cyrille Pécuchet, of the same age and nearly identical temperament. They meet one hot summer day in 1838 by the canal Saint-Martin and form an instant, symbiotic friendship. When Bouvard inherits a sizable fortune, the two decide to move to the countryside. They find a 94-acre (380,000 m2) property near the town of Chavignolles in Normandy, between Caen and Falaise, and 100 miles (160 km) west of Rouen. Their search for intellectual stimulation leads them, over the course of years, to flounder through almost every branch of knowledge.

Balzac (died in 1850):

In his novel, The Wild Ass’s Skin (La Peau de Chagrin), Balzac describes scenes and conversations which lead one insightful interpreter of his to remark:  “On the level of world history, this incident can be read as an allegorical prefiguration of the contemporary conversion of Asia to the materialistic motivations of the technological societies of the West.”  (Balzac: An Interpretation of La Comédie Humaine, F.J.W. Hemmings, Random House, 1967, page 173)

Hemmings says:  “Europe and then American norms are generally accepted among what we call the advanced societies of the world: a civilization concerned above all to stimulate and then gratify the innumerable private desires of its citizens…In Balzac’s day, this civilization had reached its highest development in Paris.”  (Hemmings’s book, page 173)

These three novelists bring to mind Heidegger’s (died in 1976) more recent sense that science and technology from Europe would take over dominant “planetary thinking” and that would “wring out” any sense of “being” or “being-in-the world.”

These three writers gave us “allegorical prefigurations” (to use the Hemmings’s phrase above) of the present which are startling in their far-seeing sense of things and that raises the question: who might their equivalents be in our time?

Essay 45: Then and Now Thinking: Facile Comparisons Lead to “Concept-Fraud”

The economist Arthur Laffer recently received an award from President Trump. Laffer wants to deceptively “cartoonize” reality by arguing that as taxes “go to 100%” (i.e., confiscation), output will go to zero and conversely as taxes “go to zero” output will go to “infinity.”

This is an example of playing with “bad infinities.”

This Laffer argument has been naively compared to David Hume’s economics:

“Back in the eighteenth century, the wise Scot David Hume anticipated David Hume in these 1756 words of sooth:

“‘Exorbitant taxes, like extreme necessity, destroy industry by producing despair; and even before they reach this pitch, they raise raise the wages of the laborer and manufacturer, and heighten the price of all commodities. An attentive disinterested legislature will observe the point where the emolument ceases and the prejudice begins.’”

(David Hume, Writings on Economics, ed. Eugene Rotwein, Edinburgh, Thomas Nelson and Sons, 1955, page 87)

(quoted in Greed is Not Enough: Reaganomics, Robert Lekachman, Pantheon Books, 1982, page 49)

Reaganomics and Laffer-nomics have nothing to do with David Hume and facile “then-and-now” comparisons, all of which are false since the “anarcho-capitalism” of Reagan/Thatcher views has noting to do with Hume

Thatcher said: “properly speaking, there is no such thing as society. There are only individuals.”

But Hume believes the exact opposite as a socially conscious brand of conservative:

Hume cherished the structures that sustain our social life. He was in this respect deeply conservative, in the good sense of the conservationist of the shapes and forms which these institutions have taken.

“And of course he was deeply mistrustful of any scatterbrained project of doing better, by promoting anarchism or society without government or law, or dismantling the institutions of contract or private property. 

“He would have had absolutely no patience whatsoever with the contemporary takeover of social ideals by monetary and market values.

“When free-marketeers say that there is no such thing as society, they are denying the very arches needed to sustain contracts, law, government, and markets in the first place, and then knavery loses its stigma, and we may well expect the worst, as their practice becomes ‘answerable’  to their ‘speculation.’”

(quoted in How to Read Hume, Simon Blackburn, Granta, 2008, page 70)

Deceivers make duplicitous linkages between hallowed names and ideas of the past and the dangerously “tricky” present.

Thus, Hume-to-Laffer linkages and trajectories makes no sense whatsoever. This is an example of “then-and-now thinking” used for “concept-fraud.”

Essay 44: Towards a More Cosmopolitan Education

Harvard University Press published in 2017, Jottings under Lamplight, an anthology of Lu Xun‘s (died in 1936) essays.  Lu Xun was the father of modern Chinese literature.

One of them is “Lessons from the Movies” from 1933:

“But when I went to the movies in Shanghai, I found that I had become one of the ‘lowly Chinese.’  In the galleries above were the white people and the rich people, and downstairs sat rows of middle and lower-class ‘descendants of the Han,’ while on the screen white soldiers fought battles, white gentlemen made fortunes, white maidens got married and white heroes had adventures, all to the admiration, envy, and terror of the audience, who knew that they themselves could do none of these things.”

(“Lessons from the Movies” essay in Jottings under Lamplight, Lu Xun, edited by Eileen Cheng et al, 2017, page 271, Harvard University Press) [first published September 11, 1933].

Only white people seem to “do things” in the world and to have agency, plannable lives, rationality, historical roles, defined stories. This is of course unsustainable.

This Lu Xun essay reminds us of the classic work of the black leader and “prophet,” William E. B. Du Bois.

The Souls of Black Folk by W.E.B. Du Bois:

W.E.B. Du Bois said, on the launch of his groundbreaking 1903 treatise The Souls of Black Folk, “for the problem of the Twentieth Century is the problem of the color-line”—a prescient statement. Setting out to show to the reader “the strange meaning of being black here in the dawning of the Twentieth Century,” Du Bois explains the meaning of the emancipation, and its effect, and his views on the role of “the leaders of his race.”

Thus, Lu Xun and Du Bois agree, seeing the “color-line” where non-white people seem marginalized “forever” as a global apartheid that is not sustainable.

This will give the student a more wide-angle view of world history.

Essay 43: Knowledge Puzzles of “Far-Fetched Questions”

Heidegger (died in 1976), the German thinker (and Hannah Arendt‘s lifelong boyfriend) is walking along somewhere in France with Jean Beaufret, the French poet-philosopher, and wants to “delimit” what topics should be admitted and discussed and manage to dismiss other kinds of topics.  Heidegger says, “we do not need to ask what the connection is between Newton’s laws and the French national anthem, ‘La Marseillaise’ or between Carnot’s Principle and the sign on the shop across the street, ‘This Store is Now Shuttered.’”

In Gulliver’s Travels, the satirical masterpiece, we find a scene where the Academy of Projectors (mad scientists profs.) are trying to make cucumbers out of moonbeams and have other crazy projects.  The Academy is described in the Laputa/Lagado “flying islands” section of the satire.  Again, we grin when we read these lines in Jonathan Swift and marvel at his inventive genius. It’s not quite as simple to pin down exactly why Heidegger’s or Swift’s examples of “crazy questions or projects” are so comically nutty.  Clearly, there are experiences we all agree on as being indicative of insanity or are at the outer limits, perhaps, of Quixotism (Don Quixote).  If a person tells you he or she plans to go to the roof and reach up and put the moon in their pocket and then go the county Registrar of Deeds and declare it their property, we see multiple impossibilities and figure the person is joking, drunk or insane.

On the other hand, many questions or projects that would seem silly at one point seem less silly now: an example is, say, bringing “dinosaurs” back via DNA “resurrections.”

Thus the “knowledge quest” and its parameters is evolving in strange ways, on top of all the other uncertainties.

The Heidegger/Beaufret dialogue, mentioned above, occurs in the following book:

Dialogue with Heidegger: Greek Philosophy
Jean Beaufret
Series: Studies in Continental Thought
Publication date: 07/06/2006
ISBN: 978-0-253-34730-5

Essay 42: The View From Nowhere as an Additional Problem in “Thinking About Thinking”

The View From Nowhere is a book by philosopher Thomas Nagel.

Published by Oxford University Press in 1986, it contrasts passive and active points of view in how humanity interacts with the world, relying either on a subjective perspective that reflects a point of view or an objective perspective that takes a more detached perspective. Nagel describes the objective perspective as the “view from nowhere,” one where the only valuable ideas are ones derived independently.

Epistemology (what we can know and why) is puzzling to the max if you ponder it for a moment. Think of a painting in a Boston museum. If you walk up to it, you see only the little piece in front of your nose so you back up and try to get an “optimal grip.” (to use Prof. Merleau-Ponty’s language.) If you walk all the way to China and try to see it from there, you will see nothing of it, no matter what telescope you might use. This is sort of what we mean by “the view from nowhere.” You’re way too far.

This brings us to the problem of the “detached observer” (modern versions of which stem from Descartes, who wants to get a bird’s eye view of all other bird’s eye views.  This is tricky and elusive for the obvious reasons. When Richard Feynman or some other physicist theorizes, is he not achieving a view from nowhere or is he? No one will deny a place to theoretical “standpoints” and “viewpoints.” The theoretician is himself a person who breathes, and sneezes, and yawns, and gets hungry and has to stretch his or her legs after too much sitting. One can’t quite “move into one’s own mind” since all theory is “embodied.”

Human beings have the unique ability to view the world in a detached way: 

We can think about the world in terms that “transcend” our own experience or interest, and consider the world from a vantage point that is, in Nagel’s words, “nowhere in particular.”

The strange human situation is seen from the fact that this “view from nowhere,” this “detached observer” theoretical stance, includes the theorist himself, the detachment and the theory as part of the “bird’s eye view” without any particular concrete bird serving as your ambassador or proxy.

“The unifying theme, as Nagel puts it at the beginning, is the problem of how to combine the perspective of a particular person ‘inside the world’ with an objective view of that same world, the person and his viewpoint included.”

(Bernard Williams, 1986 book review, London Review of Books.)

We have already seen the problem of Husserl‘s (died in 1938) “rhomboid” or “matchbox” (i.e., you can’t see the entire matchbox all at once) or Ortega y Gasset‘s “orange” (i.e., you cannot see the back or obverse or reverse of a spherical orange unless you walk around it and lose the first view from the front) and all this “partial viewing” takes place on “Neurath’s boat.” (Where we’re like sailors on a knowledge ship and can’t go back to any origins and can’t discuss Platonism with Plato himself. The Harvard philosopher Quine, among others, mentions this problem.) The ship movies forward and the “matchbox/orange” are viewed in some cabin on the ship (i.e., your field, such as chemistry or history or biology).

Lastly: think of the opening line of Thomas Mann’s (died in 1955) great novel, Joseph and His Brothers: “Deep is the well of the past. Should we not call it bottomless?”

In other words, there is no way for us as “knowledge detectives” to go back to the origins of ourselves or our history since that’s all unrecoverable and lost “in the mist of time.”

A student embarking on a “knowledge quest” (university education) should not dodge these puzzles and mysteries but look at them “unblinkingly.”  A deep education means all the dimensions of the quest are in front of the student and not wished away.  This includes the student’s own danger of being lost as “a leaf in the whirlwind of time.” (Hannah Arendt phrase we have already seen.). Career aside, there are multiple “Rubik’s Cubes” here if the student wants to experience the deep and the wide.

Essay 41: Then and Now Thinking

Historical thinking is a lifelong attempt to link something called “then” to something called “now.”  History as an academic field of study has a deep cleavage within it in that people like Foucault and Nietzsche think the links between then and now are often illusionary since history is mostly noise (i.e., disconnected chaos) and not “signal” (i.e., “cause and effect” chains of linear progress uncovered by “historian-detectives.”)

We explore this in this mini-essay by looking at the rise of what we call a service economy.

The great Russian thinker Alexander Herzen is traveling around Europe in the 1840s with Marx’s Manifesto appearing in 1848.  Herzen is amazed at the service sector in Paris:

“He was enchanted by the conveniences of Paris, especially the numbers of quick efficient services, from catering to house-cleaning, which made it unnecessary to employ private servants.”

(quoted in Revolutions of 1848:  A Social History. Priscilla Robertson, Princeton 1967, page 110 footnote)

In our own day, the leading economic historian, R.M. Hartwell, in his classic essay, “The Service Revolution:  The Growth of Services in Modern Economy 1700-1914” outlines a worldwide rise of services, and concludes his essay thus:  “The lesson of history is undoubtedly, that was has already happened in the United States, will happen elsewhere, and that the trend in employment towards the services in all developed and developing economies will result finally in a world-wide service revolution.”

(The Fontana Economic History of Europe: The Industrial Revolution, Fontana/Collins, 1980, page 394)

Shall we then “fold Herzen/Paris 1848” into this larger picture, Hartwell’s 1700-1914 or is that a false linkage?

This is an example of then and now analysis which is key to education.

Let us continue the past two essays:

We then use this kind of interesting “home-made puzzle” (one we made-up ourselves and did not read anywhere) and follow it up by entering the academic subject:

  1. Read the classic Manias, Panics and Crashes, the Prof. Kindleberger (MIT) classic.
  2. Discover that the Prof. Niall Ferguson miniseries on PBS, The Ascent of Money, doesn’t elucidate our particular query.
  3. Read Kevin Phillips’s Bad Money to get an introduction to the dangers of “over financialization.” (“hyper financialization”).

The “New York Times” in a piece The New York Times, 12 November 1910, describes the bank run in England including the Westminster Bank.   The movie is set in 1910.

We then begin to think that the collapse of Barings Bank in recent years (Nick Leeson scandal) radiating out from Hong Kong office, is not disconnected from the Barings Bank scandals of 1890. Historical thinking wants to see an arc or trajectory or larger and wider process, and not as disconnected, episodic and completely random.

The Anglo-American financialization process has led to many anomalies.

You might legitimately date the modern beginnings of this mega-process from the 1873 classic by Walter Bagehot of The Economist in his book, Lombard Street, where London is described as the money machine that governs the world and its fluctuations.

Hank Paulson, U.S. Treasury Secretary and Ben Bernanke of the Fed, warned Congressmen in Washington, in September 2008, that the global financial system was on the brink of collapse and needed “infinite” bailout money by that Monday morning, after the weekend.

These problems have yet to be seriously addressed and we might be in a new “bubble” at the intersection of real estate and financial system pathologies (i.e., where the world economy tends to become a kind of “betting parlor”).

Essay 40: Movies as a “Backdoor Into Financial History”

“Financial history” (the Professor Niall Ferguson PBS miniseries, The Ascent of Money, of recent years tries to “flag” this domain) can be exciting and eye-opening if the student fins the kind of “backdoor” into it that makes it all enchanting and not a tiresome slog through opaque textbooks.  Movies are a good way to “parachute” into fields, domains, areas of study:

The 1963 movie Mary Poppins is partly about bank runs and the “Tuppence” song in the movie communicates the centrality of London finance in the world of 1910, the setting of the movie:

“You see, Michael, you’ll be part of railways through Africa
Dams across the Nile, fleets of ocean Greyhounds
Majestic, self-amortizing canals
Plantations of ripening tea
All from tuppence, prudently fruitfully, frugally invested
In the, to be specific
In the Dawes, Tomes, Mousely, Grubbs
Fidelity fiduciary bank

Now Michael, when you deposit tuppence in a bank account
Soon you’ll see
That it blooms into credit of a generous amount
Semiannually
And you’ll achieve that sense of stature
As your influence expands
To the high financial strata
That established credit, now commands
You can purchase first and second trust deeds
Think of the foreclosures
Bonds! Chattels! Dividends! Shares
Bankruptcies! Debtor sales! Opportunities
All manner of private enterprise
Shipyards! The mercantile
Collieries! Tanneries
Incorporations! Amalgamations! Banks”

The current  U.S. Treasury Secretary Mnuchin was a foreclosure king of the Great Recession of 2008.  An American movie on “bank runs” is of course the classic It’s a Wonderful Life (with James Stewart as the local banker.)

The 1910 world of London finance show in the movie Mary Poppins can be now contextualized by realizing all of this crashed down in August 1914 which represents the beginning of post-WW 1deglobalization.”  Thus, finance and globalization issues haunt the present.

Walter Bagehot’s masterpiece of 1873, Lombard Street, is a kind of anticipation of this syndrome and Charles Kindleberger‘s (MIT) Manias, Panics and Crashes gives the sense of the underlying instability.

Kevin Phillips’s book Bad Money of 2008 outlines the dangers of “over financialization.”

The movie and the fun song can help a student find his or her way in to these areas and domains.

Essay 39: Movies as a “Parachute” or Backdoor Into the Field of Economics

Here’s a second example of using movies to “sneak up on” a field such as economics.

Think of the movie, The Treasure of the Sierra Madre, from 1948, a Humphrey Bogart classic:

In 1925, in the Mexican oil-town of Tampico, Fred C. Dobbs (Humphrey Bogart) and Bob Curtin (Tim Holt), two unemployed American drifters, survive by bumming for spare change. They are recruited by an American labor contractor, Pat McCormick (Barton MacLane), as roughnecks to construct oil rigs for $8 a day.  When the project is completed, McCormick skips out without paying the men.

Returning to Tampico, the two vagrants encounter the grizzled prospector Howard (Walter Huston) in a flophouse. The loquacious and penniless ex-miner holds forth on the virtues of gold prospecting and the perils of striking it rich. The two younger men feel the lure of gold and contemplate its risks. Dobbs and Curtin run into McCormick at a cantina, and after a desperate bar fight, they collect their back wages in cash. When Dobbs wins a small jackpot in the lottery, he pools his funds with Curtin and Howard to finance a gold prospecting journey to the Mexican interior.

The flophouse mentioned above (“Oso negro”) has a quick scene which is a marvelous “parachute” into economics:  a group of men begin to reflect on why gold is so expensive while the basics of life like water or air are not.  Howard (their “cracker barrel philosopher-sage,” played by Walter Huston) explains that a thousand men set out to find gold.  999 of the men fail to find any, one finds some.  The price of gold has to reflect the costs of finding it (i.e., men, equipment, time, effort, opportunity costs, risks, danger, etc.) by all thousand and include the 999 failures and not just the one success.  This is an example, albeit primitive, of something like the labor-theory of value explored by Ricardo and then Marx:

Labor theory of value

The labor theory of value (LTV) is a heterodox theory of value that argues that the economic value of a good or service is determined by the total amount of “socially necessary labor” required to produce it. … Marx did not refer to his own theory of value as a “labor theory of value.

Again, using this movie as a charming or enchanting “jumping off place,” you would begin to “dive into” those pages of the textbook that are relevant, much as you’d use a dictionary to look up some words. You then read towards the front and the back of the textbook, coming at it your own way, mindful of these questions of yours which begin to give the field a “shape.” You could do the “standard slog” through the textbook, none of which you remember three days after the course because nothing was based on your own “enchanted” searching and exploring.

Lastly, the author of the original 1927 novel, on which the movie is based, B. Traven was a German anarchist and he may have analyzed the world and its prices and costs (i.e., economics) like Howard in the movie.  This too is itself another “pathway” into economics, a biographical one.