The Economics of The Treasure of the Sierre Madre

In this installment of EconPop we delve into The Treasure of the Sierre Madre, starring Humphrey Bogart. The film is worth watching for two reasons: first, Humphey Bogart goes on a psychotic homicidal rampage, which is funny to watch if the only film you’ve otherwise seen him in is Casablanca. There’s also an old-timey prospector character which is, upon viewing, the archetype for every funny Old West old-timer guy you’ve ever seen, from Saturday Night Live to City Slickers.

And, of course, we get into economics. Specifically subjective value. Is gold worth money because of the time and sweat which alchemists put into making it, or is it worth what people are willing to pay for it? It’s an interesting question because, as Adam Smith pointed out, you can’t eat gold or do most anything directly functional with it, yet it’s far more expensive than water, which is vital to life. All this plus a lot of jokes.