And May the Economy be always in our Favour

Rithika Iyer
Economics and Finance Society of Manipal
4 min readSep 18, 2019

Hope. It is the only thing stronger than fear. A little hope is effective, a lot of hope is dangerous. A spark is fine, as long as it’s contained. — President Snow

In the wake of the rebellion, The Capitol which unsurprisingly is the state capital of Panem decides to spell out a strict code of law involving ruthless bloodshed, fear, intimidation and most of all oppression and censorship. To home in the reality of its regime which reeks of filthy deceptions and mockery under its flashy exuberance , it organizes the annual Hunger Games, a contest that defies the unworthy and the weak. A vividly described totalitarian dictatorship form of governance is brought to life by this thrilling and engaging dystopian trilogy as the Hunger Games depicts the brutal and callous political and economic situation of the country under such derelict management.

The fictional country of Panem constitutes of 12 districts plus the central authority that resides within the Capitol of the state. The leader of this state is Coriolanus Snow, who has served as the President since the past 25 years. The occupation of the people in every district within the country is characterized by the kind of resources available in that region. The Districts are prevented from interacting with each other resulting in each District having its unique culture unaffected by the other districts which in turn strongly influences the goods it produces. However, no district is as wealthy as the Capitol, and an unfortunate disparity in income levels are seen in the rest, with some districts especially being severely impoverished.

The policies which are enforced by the Capitol reflect that of an authoritarian state. Their government is the epicentre of the districts that thrives on technological and commercial innovation in the fields of architecture and weaponry. This just further goes on to prove the ubiquitous saying in the field of economics, competition drives technological change, and technological change drives societal change.

Another intriguing feature that is prevalent in the transaction policy taken on by the people is the ‘Barter System.’ The people of Panem still resort to this very primitive method of exchange, which essentially boils down to ‘Goods in exchange for Goods.’

Fear, intimidation, and annihilation are the basis for the existence of this government that enacts laws to disrupt and condemn the fundamental rights. This economy does not follow the concept of inclusive economic growth. The wealthy consider prosperity to be their sole birthright ushering widespread inequality in the marketplace.

This economy has mixed governance; it falls between the profit-maximizing capitalistic economy and the government-centric communist management. But this begs a question, what sort of administration does the power hungry Capitol represent?

The Capitol pulls the reins in matters related to law structuring, production, regulation of goods and services and wealth distribution among people. The state also provides for capital punishment and torture as a means for ‘peacekeeping’ among the districts. This job of maintaining law and order is taken up by the ‘Peace-Keepers’ of the state. This happens to be one of the ways in which the Capitol nurtures the fear and dependence of the districts on the Capitol. The Capitol allots “tesserae” to its citizens, which are “a meagre year’s supply of grain and oil for one person.” If the districts resort to methods that defy the orders of the Capitol, their life is solely dependent on Panem’s mercy.

The poverty that dwells within the economy is in fact government driven as a ploy to keep the masses in check. And we can draw parallels to the same if we observe modern North Korea.

Moreover, we can look into a real-life example of the difference between a totalitarian dictatorship and a country that embraces a mixed economy, i.e., North Korea and South Korea. In the past, both countries were run by the same economic system, but after the Korean War, North Korea jumped into a communist form of governance whereas South Korea welcomed governance that carried with it freedom and the free play of market forces.

Now that we have covered the communist aspects of this administration, let’s look into the capitalistic economy of the state. One of the most capitalist states in our world today is the USA. These economies direct themselves towards profit maximisation, and private individuals own the means of production of goods and services. Decisions over the use of resources are made by the individual or individuals who own the company. In a capitalist society, the goal of the corporation is maximising shareholder wealth. It is the government’s job to enforce laws and regulations to make sure there is a level playing field for privately-run companies

Having had an observation on discrimination between the Capitol and the districts let’s look into the disparity between districts. Districts favoured by the Capitol (and those who have winning Tributes in the Hunger Games) are rewarded for their loyalty with more food and better living conditions, which widens the poverty gap between the Districts even more. This distinction impoverishes districts like 11 and 12 even further.

Apart from all this, there are several other matters of concern that are indicated and illustrated in this series. A few of them include, the significance of labor mobility, lack of private property rights that prevents people from saving or protecting assets, and the emergence of black markets.

We, as part of a democratic country that embodies a socialist economy are entitled to freedom and several other fundamental rights by birth. When was the last time we were thrown into the hands of a government that resorts to brutal measures as part of their administration system? When was the last time we had to fight for our right to live and express ourselves? The Hunger Games aptly describes the living conditions under such governance, and the horrors one has to face by being brought up under this administration. Through this article, I hereby urge people to look into the economic lessons this book has to offer. These are just a few of the apprehensions a person in such living conditions has to go through.

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