Weekend Economists Deck the Halls Christmas Day 2013

[Ghost Dog]

67. Well, one appears to have survived the worst day of the year

once again, without too many scars.

Here's a parable 'on greed' from George Monbiot:

... Two men established a small stake in the mines, in a remote valley some distance from the nearest airstrip. They cut down the trees and began to excavate. They found the digging and hosing and sifting of the gravel exceedingly hard and, though they had discovered very little, they decided to hire two other men to do it for them. They agreed to split any findings equally with the workers.

The two hired men dug for four months without success: with high pressure hoses they scoured great pits into which the trees collapsed; they turned the clear waters of the forest stream they excavated red with clay and tailings; they winnowed the gravel through meshed boxes; they dissolved the residues in mercury and burned it off; but they produced almost nothing. Then they hit one of the richest deposits ever discovered in Roraima: in one day they extracted 4kg.

If you find a lot of gold in the garimpos you keep quiet – very quiet. A single shout of triumph can amount to suicide. You gather it up, hide it in your bag and explain to anyone who asks on your way out that months of work have brought you nothing but disease and misery. But first it must be divided.

The two men who owned the stake began to comprehend, for the first time, the implications of the deal they had done. "We risked our lives to establish this stake. We spent every cent we had – and plenty we didn't – travelling here, buying the equipment and the diesel, hacking out a clearing in the forest, hiring these men. And now we have to split the gold equally with people who are no more than manual labourers, who would normally be paid a few dollars a day." They told the two workers that they wanted a special meal that night, and sent them to the nearest airstrip to buy the ingredients.

As the two workers walked they began to ruminate. "We've nearly killed ourselves in that pit. We've been up before dawn every day and have worked until dusk. We've had malaria, foot rot, screw worm, sunstroke, while those two bastards have done nothing but lie in their hammocks shouting instructions. Now we're expected to give them an equal share of the gold that we and we alone found." When they reached the store, they bought cachaça, rice, beans, a packet of seasoning and a box of rat poison. They mixed the poison into the seasoning and set off back to the camp. Before they reached it, they were ambushed by the two owners and shot. The owners then picked up the bags and went back to the camp to celebrate over the first hot dinner they had had in weeks.

Some time later a party of men moving through the forest to look for new stakes walked into the camp. They found two skeletons over which vines were already beginning to creep. And 4kg of gold.

/... Source and background to the story: http://www.theguardian.com/commentisfree/2013/dec/23/gold-guns-greed-rat-poison-brazilian-jungle-miners