Is the real economy like the board game Monopoly? We can pick out particular similarities, such as the instance cited above. The game’s banker does issue an unlimited amount of paper money which has no inherent value. For the most part, however, the comparison falls flat.
Last year, two leftist authors used the board game as an analogy for “the danger of raw, unfettered capitalism.” Published at Truthout, Thom Hartmann and Sam Sacks paint a dramatic picture of how the cannibalistic final rounds of a Monopoly game model both the recession of 2008 and a larger economic collapse yet to come. They argue that a high concentration of wealth in the hands of a few initiates an economic collapse as an endless quest for profit drains consumers and ultimately deprives even the rich, ending the game. They write:
But let’s assume the Monopoly game doesn’t end there. Let’s assume the broke players keep rolling the dice and keep going around the board. They essentially keep living their lives desperate and broke, using their credit cards and home lines of credit to stay in the game. Maybe they end up in jail. If they’re lucky, they land on Baltic Avenue and can afford to stay a night in the slums.
Meanwhile, the oligarch who owns everything can no longer collect any income. The other players can’t afford to pay rent, they can’t pay utilities, and they can’t ride on the railroads. Eventually, without consumers spending money, the Monopoly oligarch goes broke, too. His properties and businesses disappear and suddenly everyone is broke!
That’s what Monopoly’s version of economic collapse looks like. And it’s very similar to what global economic collapse in the real world looks like, too.
Their analysis proves worth reading in its entirety, if only to fully demonstrate its error. Their argument rests upon premises which fall apart when tested.