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The Wizard of Oz as An Economic Parable: A Short Introduction

14 Aug

The Wonderful Wizard of OzThe Wonderful Wizard of Oz by L. Frank Baum

My Rating★★★★★

The Wizard of Oz as An Economic Parable: A Short Introduction

This might be common knowledge or it might not be. Some economics textbook claim this is a wonderfully esoteric nugget: The story of Oz was an economic parable. Take that, all you who said economics can’t be fun.

Redistributions of wealth caused by unexpected changes in the price level are often a source of political turmoil. From 1880 to 1896 the price level in the United States fell 23 percent. This deflation was good for Haves (creditors – primarily the bankers of the Northeast), but it was bad for Have-Nots (debtors – primarily the farmers of the South and West). The deflation was blamed almost exclusively on the now notorious Gold Standard and a proposed move towards Silver was instead the craved for alternative.

The Silver issue dominated the presidential election of 1896. William McKinley, the Republican nominee, campaigned on a platform of preserving the gold standard.

William Jennings Bryan, the Democratic nominee, ranged boldly against Gold and for Silver. In a famous speech, Bryan proclaimed, “You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.’’

Not surprisingly, McKinley was the candidate of the conservative eastern establishment, whereas Bryan was the candidate of the southern and western populists.

Then came The Wizard of Oz.

The midwestern journalist, L. Frank Baum tells the story of Dorothy, a girl lost in a strange land far from her home in Kansas. Dorothy (representing traditional American values) makes three friends: a scarecrow (the farmer), a tin woodman (the industrial worker), and a lion whose roar exceeds his might (William Jennings Bryan). Together, the four of them make their way along a perilous yellow brick road (the gold standard), hoping to find the Wizard who will help Dorothy return home.

Eventually they arrive in Oz (Washington), where everyone sees the world through green glasses (money). The Wizard (William McKinley) tries to be all things to all people but turns out to be a fraud.

Dorothy’s problem is solved only when she learns about the magical power of her (otherwise ordinary) silver slippers. (Unfortunately the movie forgot the parable and omitted the silver slippers – thus depriving the majority of the audience of the real delight in the victory!)

The Republicans (The Wizard) won the election of 1896, and the United States stayed on a gold standard, but the Free Silver advocates got the inflation that they wanted after gold was discovered in Alaska, Australia, and South Africa. Even later, Gold was abandoned altogether and the fraudster wizards was never heard from again. Dorothy and Baum had the last laugh over the unwanted magical oppression of the Yellow Brick Road and the green-tinted world. Well, at least from the road.

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Posted by on August 14, 2013 in Book Reviews, Books, Thoughts

 

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