The Economics of Wizarding World
- Hitanshi Assar
- Oct 30, 2024
- 4 min read
Daily Prophet
The Wizarding Newspaper
Good day, wizards and witches of our beloved magical community!
They say even the most enchanted cauldron requires a good stir now and then to keep the potion bubbling. Consider this your magical reminder, the Daily Prophet has returned with a fresh brew of news, stirred to perfection! While we did not require a splash of the Liquid Luck- Felix Felicis, we did channel some of Fawkes’ fiery rebirth to bring you a fresh and vivid edition. And just in time!
With Halloween just a few days away, the wizarding world is buzzing with excitement–not just for the macabre festivals but also for some significant changes in our magical economy. We suggest grabbing your goblets of pumpkin juice and butterbeer because it is time to dive headfirst into the top trending stories!
Diagon Alley, London — With Halloween around the corner, the Ministry of Magic has issued a rather strict warning about the activities taking place in Knockturn Alley, known to be the buzzing hub of the underground trade. The alley, renowned for its occasional acts of tomfoolery, has often been caught while dealing in cursed objects, illegal potions, and forbidden artefacts.
Operating much like any other black market, wizards and witches get their hands on goods not found in the regular shops, due to its permanent ban from the Ministry or sheer rarity. Black Market, often pointed out by economists, is a classic example of high demand meeting restricted supply. Percy Weasley, Head of the Department of Magical Transportation, further explains this concept: “When the Ministry of Magic tightens its control on the supply of certain goods like defensive spells, people still demand it out of concern for their protection, creating a strong base for these markets to flourish,” further another professor from Hogwarts added, “Prices of such items usually tend to be very high due to its attached risks.”
Interestingly, the Muggle world is not immune to the allure of black markets either! They have their own shadow markets, where prohibited or restricted items like drugs, and legal goods are traded without reporting income or paying taxes. While they can provide goods during shortages, they also contribute to crime, violence, and tax evasion. In a recent discussion with the Muggle Prime Minister, he added that high unemployment has been a significant driving force of such markets. Unable to find stable jobs in the formal economy, many turn to underground work, whether it’s as harmless as offering handyman services for cash, or as dangerous as selling illicit substances like narcotics, weapons, etc. Muggle black markets reflect the same dynamics seen in Knockturn Alley— where economic desperation meets hidden opportunity. Both worlds remind us that when above-ground markets fail to meet people’s needs, the underground finds a way to fill the gap.
With Halloween just around the corner, witches and wizards are advised to shop wisely and avoid any dubious goods that may come with dangerous enchantments or hidden curses. This Halloween let's celebrate responsibly– because not all tricks are worth the treat!
Ollivanders–Monopoly that still stands Unmatched!
As Hogwarts welcomes back its students with another semester, Ollivander’s Wand Shop is as busy as ever! Maintaining its near-total grip on the wand market, Ollivander is stronger than ever! Some say he puts a spell on his customers the second they set foot in the shop but we think it's his thorough knowledge and experience that casts the spell on his customers.
Ollivander's repeated statements that he can recall every wand he has ever sold demonstrate his meticulous attention to detail and the lasting impact it has on his clients. Oh to be remembered by the greatest wandmaker in history! Generations of great witches and wizards have chosen Ollivander’s for their wands. Harry Potter, who was recently seen outside the shop, said he would love to shop from the wandmaker when his third child starts school next September! Despite the emergence of a few small wandmakers, Ollivanders’ hold on the market is impeccable, making it the prime example of a monopoly in the wizarding world.
Economists around the world describe a monopoly as a market structure that consists of a single seller controlling the supply and no close substitutes. Ollivanders controlling the majority is no better fit for this market situation than anybody else. Not only does he dominate the supply and sales but also sets the prices without much challenge.
In the Muggle world, monopolies occur with companies like tech giants or utility providers, with their expertise, size, or control over resources. The government, as they like to call their ministry, controls the railways. It is operated and managed by the ministry preventing any exploitation or theft or deception to the general public. Unlike some monopolies that might exploit high prices, these Muggle public railway systems typically keep their ticket costs low and reasonable enough to ensure travelling is accessible to all.
So, dear readers, returning to our subject, do you believe that the Ollivanders, who has a centuries-old reputation for producing the best wands, should maintain their large market share or should some up-and-coming wandmakers take the mantle?
Catching Up on the Latest in Wizarding Economics:
From potion deliveries to enchanted cleaning services, more young wizards are taking part-time or free-lancing magical gigs as flexible work rises in popularity across the country, boosting the gig economy! Further, rumours of rare magical creatures sightings are driving up the prices of potion ingredients, as speculators are bidding on varieties of things from unicorn hair to phoenix feathers!
And with that, we round off this special Halloween edition of the Daily Prophet. Until next time, shop carefully and have a spooktacular Halloween!
Comments