Expanding on the Economic Lessons of The Mummy and The Mummy Returns
In our previous post, we delved into the economic themes present in the films The Mummy and The Mummy Returns, focusing on the value of specialization, cooperation, and the pitfalls of credentialism. In this article, we will further explore these economic concepts and their implications within the context of the movies.
One of the central economic lessons highlighted in the films is the concept of specialization and comparative advantage. The characters of Evelyn, Jonathan, and Rick exemplify this principle through their unique skillsets that complement each other. Evelyn’s scholarly knowledge as a librarian, Rick’s adventurous gunslinging abilities, and Jonathan’s expertise as a pickpocket all contribute to the team’s success in navigating the challenges they face. By leveraging each other’s strengths and expertise, they are able to achieve greater outcomes collectively than they would have individually.
Moreover, the films showcase how cooperation and the division of labor can overcome conflicts and lead to mutual gains. Initially, there is competition and conflict between different groups vying for resources and recognition. However, when faced with a common threat, such as the Medjai’s attack on the camp, the groups set aside their differences and collaborate for the greater good. This highlights the importance of working together and sharing knowledge for mutual benefit.
The introduction of specialized transportation services, such as Winston’s piloting skills and Izzy’s dirigible, also underscores the role of innovation and entrepreneurship in filling gaps in the market. By utilizing these specialized services, the characters are able to overcome obstacles and achieve their objectives more efficiently.
Furthermore, the films challenge the notion of credentialism and the importance of formal qualifications in determining expertise. Evelyn’s ability to uncover critical information and solve complex puzzles despite being excluded from the Bembridge Scholars guild challenges the conventional wisdom that credentials are the sole indicator of competence. The story suggests that true expertise and knowledge can come from experience and individual skills, rather than formal titles or credentials.
Additionally, the films highlight the issue of asymmetric information in labor markets, where certain individuals possess more information than others, leading to unequal outcomes. The Egyptian diggers working under the direction of the Egyptologist or Hafez lack crucial information about the dangers they face, putting them at a disadvantage. This underscores the importance of transparency and communication in ensuring fair and equitable labor practices.
In conclusion, The Mummy and The Mummy Returns offer valuable insights into economic principles such as specialization, cooperation, innovation, and the limitations of credentialism. By examining these themes within the context of the films, we can gain a deeper understanding of how economic concepts play out in real-world scenarios and shape our interactions and outcomes. The concept of asymmetric information leading to moral hazard problems is a common theme in economics textbooks, but it is not often portrayed in popular media. However, in two films, the diggers are not given all the information they need to safely perform their job, highlighting the issue of asymmetric information in a unique way.
This lack of transparency can lead to moral hazard problems, where one party takes risks because they are not fully informed of the potential consequences. In the films, this lack of information puts the diggers at risk and ultimately leads to dangerous situations.
Another economic concept illustrated in the films is the idea of negative externalities. The curse placed on the mummy Imhotep by the pharaoh’s soldiers has concentrated benefits for them, but the costs are dispersed among others, including the residents of Cairo. This imbalance in costs and benefits can lead to inefficient resource allocation and long-term economic damage.
The economic impact of the curse is significant, with potential long-term effects on the economy of Cairo and the world. Rebuilding the city and compensating victims would require substantial resources, possibly leading to hidden taxes or insurance funds to cover the costs.
The unintended consequences of the curse and the actions of the characters in the films highlight the importance of good intentions not always resulting in positive outcomes. In the real world, unforeseen circumstances can have far-reaching effects, underscoring the need for institutions and insurance plans to mitigate risks and cover potential damages.
Overall, the economic themes present in these films provide a unique perspective on familiar concepts and serve as a reminder of the complexities of decision-making and the importance of transparency and information in economic transactions.
Darwyyn Deyo is an Associate Professor of Economics at San José State University.
Alicia Plemmons is an Assistant Professor and Director of the Center for Free Enterprise at West Virginia University.
