The Economy of Harry Potter
Because bored person is bored and has decided to have a rant....
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So we have The Economy of Harry Potter or Rather a (completely over the top and unfair to JK) Rant on the Economy of Harry Potter.
Firstly MY REVELATION
THE WIZARDING WORLD IS COMMUNIST
Just joking, it just happens really to have some very socialist traits. Well, badly done socialism. Completely failed socialism, forgetting it's original aims. Remember socialism =/= bad
Now this may seem odd after all the Wizarding World seems have all the power concentrated in an oligarchy of old families; the very opposite of the principles of Socialim but bear with me.
1) Now, look at the destinations of young wizards from Hogwarts. Now apparently lots of them go into the Ministry. Now of course not everyone can really be going into government proper. It seems to me that the majority seem to be going into what we in the UK would call the civil service. Now, this is perhaps unsurprisingly given the size of this Wizarding Civil Service. Scientific Research? Well, the magic version would be the Department of Mysteries. The law courts seem more closely tied to the government than they are in the muggle world. And so it goes on. So it is unsurprising that many Hogwarts students make their way there. However look at how few Hogwarts students there are. The percentage of people going into this seems surprisingly high. So, maybe just they should just give up and put up the statures of Lenin.
To be fair, it is Wizarding Britain. The figures probably aren't that different to that in parts of the North of England. Plus, we are the country whose bureaucrats manage to come up with jobs such as "Access to Nature Officers". So maybe it's just the trope Truth In Television making itself known.
2) Right a small oligarchy of old families in charge doesn't fit in with this?
Well, ignore the old and tell me it really doesn't. I did say it was failed socialism. Many countries, democratic or otherwise, communist or capitalist suffer from this problem. As George Orwell says "All man are created equal, but some are created more equal than others"
3) A point that dosen't necessary show the economy is socialist but....
What is St.Mungo's but a Wizarding NHS! I mean do you ever remember people paying for treatment there? Or any mention of health insurance? (again I point out it's Wizarding Britain)
GO WIZARDING WORLD! Even a corrupt oligarchy which allows a group of fascist terrorist take over and has a problematic economy and industrialised racism manages to have a free a the point of use medical service! See USA it can be done Yes, admittedly we hear of donations and such, but people do donate to governments and sometimes hospital in Muggle Britain to. So yeah. Schooling seems to be at least subsidised if not free too.
Secondarily Their Currency is Outdated and Unworkable
A long, long time ago most of Europe used gold coins. Usually most of these coins were the same size. This uniformity or the ability to weigh the gold to compare it across allowed Florints and Ducats to be used in other countries and in place of each other. No exchange rates! (YAY! Unless like me, you've always harboured an obsession to be a FOREX dealer). So why did Europe abandon this. Well, the Government had no control over the money. Suddenly when some countries *cough*Spain*cough* imported a load of gold from South America the value of the currency plummeted. Also people started to judge country's currency's on other factors so sometimes the value of the metal was more than the value of the coin, tempting people to melt it. Actually scratch this. For the rest of the reasons on why it's pointless to base a currency on gold read Terry Pratchett's Making Money.
1) The value of the coins must be fixed to the value of the metal. Now, metals vary in price. Unless, and admittedly it's not impossible, the WW (or rather the Goblins) have special mines which they keep completely separate from the muggle word and they then control the supply De Beers style, they have little control over this. Actually even this wouldn't quite work as there would be demand for gold in other areas of the WW. So if as in real life, Gold and Silver don't vary in tandem, sometimes sickles would be worth more gallons than other times. There is no evidence of this happening. Of course if they set the value of galleons etc then we have the whole metal melting temptation problem. Of course given they have magic maybe they have some anti-coin defacing spells. However given the ability of wizards such as Fred and George or Hermione (look at the DA galleons!) it seems unlikely this is foolproof.
2)Given the prices of some things, it seems like an awful lot of coinage to carry around. I mean I'm not asking for credit cards but bank notes would be nice. Or even cheques!
3)It seems like an awful lot of physical currency to store in the economy. Wizards store all their savings in Gringotts. In vaults. The actual coins. So unlike the muggle world the physical money (narrow money) goes out of the economy and stays there. All I can say is they most have to mint a lot of coins. Well, it would explain where all the gold goes in the real world. Actually, it must be difficult to move money around accounts, I guess they must use magic. Gringotts for all its reputation seems less secure than you'd hope as well...
4) Not a real point per say, but Gringotts is the only bank right? (OH NOES IT'S A MONOPOLY) anyone know if they loan money out? Just a query?
5) Finally, in addition to any points I've made. The Muggle world doesn't use currency like this any more. So the reasons not to must be pretty decent.
ok, I realise with the euro collapsing their way may seem more tempting but trust me the euro itself was fundamentally flawed
Thirdly Not exactly an economic point but....
The Wizarding Population seems unfeasibly small. Never mind the biologists and their worries. THE LABOUR FORCE IS TOO SMALL FOR ECONOMIC GROWTH. They need migration.
...Oh, wait actually couldn't the appearance muggleborns be taken as a migration action provided by nature! to stop inbreeding and stuff but hey it helps the economy too
Oops, of course Voldy tried to kill them. Voldy you fail economics forever! but then Hitler did too.
Fourthly, Where is my money/economy government department?! OK, let's be fair it's a kids book. Economics doesn't sound cool, maybe it just doesn't get mentioned but does exist. Still, it's important. Actually I rather like the idea of a Wizarding Inland Revenue or IRS. lol. On the other hand, maybe Gringotts is like the Bank of England and controls monetary policy. Quite likely if it's the only bank actually. Mind you even if it isn't that's still a lot of power the Goblins have. Let's leave all our money we a race we don't really get on with and have had wars we multiple times in the past. Can't see an issue with that. To be fair it's not like anti-Semitism stopped people using Jewish financial services in the Middle Ages though and the wizarding world is stuck in the middle ages so it's quite fitting
Fifthly, Sort of linked to above section on labour force; the skill set of the labour force. There appears to be a lack of formal education prior to secondary school, I can see bad numeracy and literacy skills even if they do have Hogwarts to improve through. "I never knew you could read" Also are there any Wizarding Uni's? Obviously the books don't follow the kids through that point of their lives, but not of those careers brochures seemed to ask for qualifications above NEWT level. Admittedly careers such as Aurors have they own job training schemes but even so... Perhaps the lack of innovation is no surprise. This lack of innovation again must do the economy little good. Still, modern-day Europe....well.
Still look on the bright side, No Stock Market!
Yep. There's no mention of one and given the other indications it seems unlikely. So no brokers pulling us into recession! The aforementioned lack of banks, No toxic debts!
"Wait what...OK, So it's the bond markets that are the really scary ones?"
Well, little voice of fairness in my head, I doubt they have those markets either. They probably do have Sovereign debt though. Everyone has Sovereign debt.
"Wait, right alright, you're saying stock markets can be good too? Raising company revenue, allowing wealth to spread. Really? Well, you realise new things everyday."
OK, Well this is Inwitari a bored A-level economics student, signing off after her unfair, biased and probably insulting rant. Goodbye.
________________________________________________________________________________________________________
So we have The Economy of Harry Potter or Rather a (completely over the top and unfair to JK) Rant on the Economy of Harry Potter.
Firstly MY REVELATION
THE WIZARDING WORLD IS COMMUNIST
Just joking, it just happens really to have some very socialist traits. Well, badly done socialism. Completely failed socialism, forgetting it's original aims. Remember socialism =/= bad
Now this may seem odd after all the Wizarding World seems have all the power concentrated in an oligarchy of old families; the very opposite of the principles of Socialim but bear with me.
1) Now, look at the destinations of young wizards from Hogwarts. Now apparently lots of them go into the Ministry. Now of course not everyone can really be going into government proper. It seems to me that the majority seem to be going into what we in the UK would call the civil service. Now, this is perhaps unsurprisingly given the size of this Wizarding Civil Service. Scientific Research? Well, the magic version would be the Department of Mysteries. The law courts seem more closely tied to the government than they are in the muggle world. And so it goes on. So it is unsurprising that many Hogwarts students make their way there. However look at how few Hogwarts students there are. The percentage of people going into this seems surprisingly high. So, maybe just they should just give up and put up the statures of Lenin.
To be fair, it is Wizarding Britain. The figures probably aren't that different to that in parts of the North of England. Plus, we are the country whose bureaucrats manage to come up with jobs such as "Access to Nature Officers". So maybe it's just the trope Truth In Television making itself known.
2) Right a small oligarchy of old families in charge doesn't fit in with this?
Well, ignore the old and tell me it really doesn't. I did say it was failed socialism. Many countries, democratic or otherwise, communist or capitalist suffer from this problem. As George Orwell says "All man are created equal, but some are created more equal than others"
3) A point that dosen't necessary show the economy is socialist but....
What is St.Mungo's but a Wizarding NHS! I mean do you ever remember people paying for treatment there? Or any mention of health insurance? (again I point out it's Wizarding Britain)
GO WIZARDING WORLD! Even a corrupt oligarchy which allows a group of fascist terrorist take over and has a problematic economy and industrialised racism manages to have a free a the point of use medical service! See USA it can be done Yes, admittedly we hear of donations and such, but people do donate to governments and sometimes hospital in Muggle Britain to. So yeah. Schooling seems to be at least subsidised if not free too.
Secondarily Their Currency is Outdated and Unworkable
A long, long time ago most of Europe used gold coins. Usually most of these coins were the same size. This uniformity or the ability to weigh the gold to compare it across allowed Florints and Ducats to be used in other countries and in place of each other. No exchange rates! (YAY! Unless like me, you've always harboured an obsession to be a FOREX dealer). So why did Europe abandon this. Well, the Government had no control over the money. Suddenly when some countries *cough*Spain*cough* imported a load of gold from South America the value of the currency plummeted. Also people started to judge country's currency's on other factors so sometimes the value of the metal was more than the value of the coin, tempting people to melt it. Actually scratch this. For the rest of the reasons on why it's pointless to base a currency on gold read Terry Pratchett's Making Money.
1) The value of the coins must be fixed to the value of the metal. Now, metals vary in price. Unless, and admittedly it's not impossible, the WW (or rather the Goblins) have special mines which they keep completely separate from the muggle word and they then control the supply De Beers style, they have little control over this. Actually even this wouldn't quite work as there would be demand for gold in other areas of the WW. So if as in real life, Gold and Silver don't vary in tandem, sometimes sickles would be worth more gallons than other times. There is no evidence of this happening. Of course if they set the value of galleons etc then we have the whole metal melting temptation problem. Of course given they have magic maybe they have some anti-coin defacing spells. However given the ability of wizards such as Fred and George or Hermione (look at the DA galleons!) it seems unlikely this is foolproof.
2)Given the prices of some things, it seems like an awful lot of coinage to carry around. I mean I'm not asking for credit cards but bank notes would be nice. Or even cheques!
3)It seems like an awful lot of physical currency to store in the economy. Wizards store all their savings in Gringotts. In vaults. The actual coins. So unlike the muggle world the physical money (narrow money) goes out of the economy and stays there. All I can say is they most have to mint a lot of coins. Well, it would explain where all the gold goes in the real world. Actually, it must be difficult to move money around accounts, I guess they must use magic. Gringotts for all its reputation seems less secure than you'd hope as well...
4) Not a real point per say, but Gringotts is the only bank right? (OH NOES IT'S A MONOPOLY) anyone know if they loan money out? Just a query?
5) Finally, in addition to any points I've made. The Muggle world doesn't use currency like this any more. So the reasons not to must be pretty decent.
ok, I realise with the euro collapsing their way may seem more tempting but trust me the euro itself was fundamentally flawed
Thirdly Not exactly an economic point but....
The Wizarding Population seems unfeasibly small. Never mind the biologists and their worries. THE LABOUR FORCE IS TOO SMALL FOR ECONOMIC GROWTH. They need migration.
...Oh, wait actually couldn't the appearance muggleborns be taken as a migration action provided by nature! to stop inbreeding and stuff but hey it helps the economy too
Oops, of course Voldy tried to kill them. Voldy you fail economics forever! but then Hitler did too.
Fourthly, Where is my money/economy government department?! OK, let's be fair it's a kids book. Economics doesn't sound cool, maybe it just doesn't get mentioned but does exist. Still, it's important. Actually I rather like the idea of a Wizarding Inland Revenue or IRS. lol. On the other hand, maybe Gringotts is like the Bank of England and controls monetary policy. Quite likely if it's the only bank actually. Mind you even if it isn't that's still a lot of power the Goblins have. Let's leave all our money we a race we don't really get on with and have had wars we multiple times in the past. Can't see an issue with that. To be fair it's not like anti-Semitism stopped people using Jewish financial services in the Middle Ages though and the wizarding world is stuck in the middle ages so it's quite fitting
Fifthly, Sort of linked to above section on labour force; the skill set of the labour force. There appears to be a lack of formal education prior to secondary school, I can see bad numeracy and literacy skills even if they do have Hogwarts to improve through. "I never knew you could read" Also are there any Wizarding Uni's? Obviously the books don't follow the kids through that point of their lives, but not of those careers brochures seemed to ask for qualifications above NEWT level. Admittedly careers such as Aurors have they own job training schemes but even so... Perhaps the lack of innovation is no surprise. This lack of innovation again must do the economy little good. Still, modern-day Europe....well.
Still look on the bright side, No Stock Market!
Yep. There's no mention of one and given the other indications it seems unlikely. So no brokers pulling us into recession! The aforementioned lack of banks, No toxic debts!
"Wait what...OK, So it's the bond markets that are the really scary ones?"
Well, little voice of fairness in my head, I doubt they have those markets either. They probably do have Sovereign debt though. Everyone has Sovereign debt.
"Wait, right alright, you're saying stock markets can be good too? Raising company revenue, allowing wealth to spread. Really? Well, you realise new things everyday."
OK, Well this is Inwitari a bored A-level economics student, signing off after her unfair, biased and probably insulting rant. Goodbye.