Micro economics is really all you need to analyze anything.

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I was reading the Wikipeida on Los Zetas, and read something interesting.

In the Mexican Execution thread, I commented that I believed that extreme level of violence was result of their push in the Extortion, which I think is the ultimate and most low cost hustle on earth.

I was right about that, and I never once read anything about Los Zetas prior

wikipedia said:
Regardless of the accuracy of the rumors, the rupture is predictable given the group's structure and its revenue sources. Unlike their Gulf Cartel progenitors, who earn much of their income from drug trafficking, Los Zetas' main revenues come from kidnapping, extortion, theft, piracy and other illegal activities. According to the book The Executioner's Men, by Samuel Logan and George W. Grayson, Los Zetas drug trafficking operations only account for 50% of its income, while InSight Crime estimates that it is much less.[2]

And since a large portion of these revenues are attained at a local level, it is likely that the local Zeta cells are unhappy that the leaders are taking so much themselves. Mid-level commanders can break off into independent cells because they control their revenues.[2] Los Zetas employs a franchise model. Low-level members use the brand name to create fear among their rivals and the public.[4] Cartels that rely on drug trafficking for income require a secure supply via the center of the gang, but Los Zetas "franchises" can thrive by relying on non-drug activities. The model is scalable but is subject to internal ruptures.[2]

The biggest money is in fear--The fear of death or the fear or a loss of freedom. People will pay almost anything not to die or be captured. When you can franchise a low crime clique and use a brand name like "Los Zetas", you really don't have to do anything, but show up to a business, flash an official Los Zetas membership card, and just watch the money role in.

These videos and other ultra-violent acts are a way of marketing the Los Zetas brand name. The ruthlessness of two Leaders of the organization, rumored to be the most sadistic people on earth are, themselves, symbols that strengthen the Los Zetas fear factor.

What is it all about? Money, Local Zeta Cliques can use the brand name of the larger organization to extort local business and engage in kidnapping. In many areas of Mexico the Zetas must be more powerful than the local authorities, which makes them the official tax collecting entity. The local Zetas only have to pay a percentage of the extortions earned plus some sort of franchise service fee to the larger organization. It's a very risky business especially for the lower level franchises, but i suspect the returns are high, and gross margin is consistent.


I know a lot of people tend to favor Macro economics, but I think Micro Economics is the important subject to learn. It's tool box that anyone can learn to use. It's also more logical and less subject to aggregation and funky models. I feel micro economic models are more explanatory in discussing human behavior than anything else.
 

zerozero

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first of all analyzing choices in this bloodless way will never let you analyze "everything"

but you're onto something here, except microeconomics is based on a sort of fallacy that all actions are rational. Is someone who walks out of a supermarket with a magazine they got at the checkout lane, that they won't read, really acting rationally? I think what you need is behavioral psychology
 

Dusty Bake Activate

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Lol...why does Gundumb always proclaim some profound insight to economics or whatever the contentious issue of the day is by citing some anecdote about prison gangs, violent drug cartels, and street thugs?
 

zerozero

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Lol...why does Gundumb always proclaim some profound insight to economics or whatever the contentious issue of the day is by citing some anecdote about prison gangs, violent drug cartels, and street thugs?

:ohhh: great point. He's been at it forever cause I remember in the thread I made about his posts on :hamster: I asked the same thing in the middle of my exchanges with him, like, how many gunfights are you actually getting into?
 

The Real

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You're just abstracting ideas from micro into other kinds of social sciences. People have been working in that terrain with more subtlety for hundreds of years. Read Max Weber on authority and legitimacy, for example.
 
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first of all analyzing choices in this bloodless way will never let you analyze "everything"

but you're onto something here, except microeconomics is based on a sort of fallacy that all actions are rational. Is someone who walks out of a supermarket with a magazine they got at the checkout lane, that they won't read, really acting rationally? I think what you need is behavioral psychology


What about, behavioral economics? :ohhh:
 
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