Why Superman Doesn't Take Over the World

by J. Brian O’Roark

  So, public goods are non-excludable. You can’t keep people from using them, even if they don’t pay. That is true of national defense to be sure, but to be a pure public good you need a second characteristic. The good must also be non-rival in consumption. This means that the good can be enjoyed by many people at the same time without anyone losing the benefit. This is certainly the case with national defense. I am currently enjoying it. As I look out the window there are no marauding bands of Canadians (or Amish) streaming from the woods. At the same time, my cousin in Seattle is also benefitting from national defense and he lives closer to the Canadian border than I do. Similarly, my friend in Montana, who also lives close to the northern U.S. border, is protected, despite his antipathy towards the military industrial complex. The fact that we all benefit from national defense at the same time doesn’t make that defense any less potent.

  To reinforce this idea, let’s contrast a public good with a private good. A private good might be something like a pair of pants. Pants are certainly something people want, if for no other reason than it gets cold in the winter. As customers we are willing to pay for them and firms are willing to produce them because they can profit from the sales. Unlike defense, it is possible to keep people from taking possession of a pair of pants if they don’t pay for them. Try this next time you are at the mall. Pick up a pair of pants and just walk out of the store and see what happens.14 In economic terms, pants are excludable. They are also rival in consumption. As a fun experiment, try to see how many people you can fit into a pair of pants. Unless they are some sort of magical clown pants, you will likely find that you are the only one you can fit into your jeans, dress trousers, or knickers. Putting more than one person in a pair of pants is obviously a fool’s errand because your use of them makes it impossible for others to do the same. They are rival in consumption.

  Now you know the problem for hero work. Hero work is a public good. When the Justice League defends the planet from an invasion by Anti-Monitor, it is providing a public good.15 If Squirrel Girl stops Thanos from annihilating Earth, she is providing a public good.16 When Aquaman prevents the pollution of the oceans, he is providing a public good. When Daredevil takes a gang of criminals off the street, he is providing a public good. You get the picture. All of these acts are things that the majority of people want. We prefer not having to deal with all-powerful alien invasions. We like clean oceans and safe streets. Finding someone to provide these things can be a problem, and even more of an issue is finding any entity on Earth with the capabilities of stopping those aliens. Heroes fit that bill. However, this protection, like national defense, is both non-excludable and non-rival in consumption. If heroes performed their heroics for money and some homeless guy (or an Amish family lost in the big city) says he can’t pay, will Wonder Woman simply allow Anti-Monitor to annihilate the vagabond? Of course not. Does the fact that the homeless man receives the benefits of the heroes’ actions in any way make the saving of the Earth less valuable to the Amish family, or Etta Candy, or Perry White?17 No it does not. Everyone on Earth is made better off when the superheroes fend off a galactic villain who is threatening to kill everyone on the planet.

  So, if no one needs to pay for their services, or in other words, if because they are providing public goods the entire population free rides off their goodwill, then making money off their hero abilities becomes next to impossible. Heroes continue to do what they do because they are heroes. To walk away from it all, even though that occasionally happens (as noted in Chapter 2 with Spider-Man), would make them less likable to be sure. Yet, in the real world public goods are provided. Adam Smith advocated for them, which is like a voice from the heavens. Was Smith naïve enough to not recognize that in the real world these services still have to be paid for? Let’s not be silly. Of course Smith knew that this could pose a problem. His solution was very straightforward and brings us to the final section of this chapter: How do you fix those nasty little blighters we have been calling free-riders?

  Fixing the Free-rider Problem

  Addressing the free-rider problem depends on how determined you are to stamp it out. In the most traditional sense, when you have public goods such as defense, lighthouses, or national public radio, you use some combination of taxation and fees to cover the costs. Since everyone benefits from defense, there is some sort of national level tax, part of which is used to pay for the army, navy, and air force. There will always be tax cheats but because the cost of defense is spread across all the citizenry, those tax dodgers don’t significantly impact the ability of government to defend the country. Similarly, with lighthouses you might collect a tax, but upon whom do you levy it? A better option might be to place a fee on the ships that dock in the port protected by the lighthouse.18 The point is, you try to spread the cost to those who benefit from the public good.

  Public radio has some problems in this regard. Even if they are subsidized by government handouts, the government charity does not fully cover operating expenses. To make up the financing gap there are regularly scheduled fundraising drives. While the announcer does his or her level best to guilt listeners into paying, it is quite easy, and rather enjoyable, to free-ride off the other listeners whose hearts are more tender towards the voice in the box. In this case, the free-rider problem is met with great sighs and anguished pleading. “Do not let your public radio station go off the air,” the voices implore, and enough people must be conscious-stricken as at the end of the campaign the station remains. Here the free-riders have a much easier time continuing to get what they like at no charge.

  We’ve mentioned the idea of heroes becoming government employees and earning a government salary. That could possibly help heroes earn a living while providing a public good, although there would certainly be strings attached. However, there is an alternative. Let’s not sugarcoat things too much. Superheroes are in the protection business, some might say the protection racket. When they fight aliens from outer space, there aren’t any cameras to capture the evidence. Sometimes they prevent crimes before they happen. In many cases, their mere presence is deterrent enough. Petty thieves would have to be really desperate to commit a crime when Batman might descend upon them in a dark alley. The reduction in normal crime, and by normal crime I mean gang-related, garden-variety muggings, or petty holdups, is certainly a public good. If streets are safer because criminals know Luke Cage is walking around and will punch their lights out, then businesses are more likely to thrive, not having to worry about being robbed, and residents are more frequently out on the streets because they do not face the threat of being mugged; however, this opens the door for the mafia-type answer to free-riders: Shake downs. Surely businesses would pay for the protection offered by heroes? They would probably pay gladly, as opposed to the squeeze that is put on them by the local crime boss, knowing that they are getting their money’s worth. Heroes aren’t likely to beat them up if they don’t pay, rather they just move to a part of town where they are more wanted. Maybe if they took the money they could spend more time punching the bad guys and less time punching a clock. Then again, would we consider them heroes if they chose that route?

  And the Answer Is …

  One of the more peculiar aspects of superhero life is that even the most skilled hero needs an income stream. Fighting crime might be a lonely business, but for heroes it is also an unprofitable one. As a result, we see heroes taking day jobs. The superhero creed prevents certain behaviors—heroes don’t kill people and they don’t bill those they save for their services. At first blush, not charging seems reasonable—they are heroes after all. Demanding payment for their services would be downright tawdry. From an economic perspective, however, the rationale is more obvious. You don’t charge because there is no good collection mechanism. If you try to get someone to pay Kate Kane (Batwoman) for saving the day, and they don’t, will Batwoman stand around and let the villain win? Additionally, if the hero does the work, everyone benefits from the actions equally. So, if I don�
�t pay, my benefit isn’t any less. Heroes find themselves in the unprofitable situation of providing public goods. Like a firefighter, the hero usually needs to address a problem quickly; there is no time for deliberation over prices. Once the threat has passed, there is no reason for the beneficiaries to pay for it.

  Understanding the nature of public goods helps us appreciate why heroes need a day job. Their avocation can’t pay the electric bill. Unfortunately though, the jobs most heroes can take are lower-paying. Heroes must skip work, disappear from the work place, and take extended vacations for the sake of their hero duties. The boss in most high-paying jobs would not put up with that. So the heroes who must work for a living are most definitely not living it up. Perhaps what they need to do is consider their nemesis. Maybe a life of crime would result in a more comfortable lifestyle.

  Endnotes

  1. The Jean Grey School for Higher Learning replaced Xavier’s School for the Gifted and helps teach students with mutant powers to use them responsibly (2011).

  2. The 1927 Yankees had a record of 110 wins and 44 losses and are considered by many the best baseball team of all time. Having Babe Ruth and Lou Gehrig, along with a lineup called Murderer’s Row, just adds to their legend.

  3. Two of the professor’s students, Warren Worthington (aka Angel) and Emma Frost, are billionaires and presumably add to the revenue stream occasionally.

  4. This estimate comes from Money Magazine (Davidson, 2015).

  5. These are the heroes Iron Man, Mr Fantastic, White Queen, and Ozymandias successively.

  6. Zatanna is the daughter of the great Giovanni Zatara. They are both powerful wizards from the mystical Homo Magi race. She is an adept business woman who earns an extremely good living performing what her patrons believe are illusions but are actually real magic. Zatanna teams up with the Justice League when supernatural powers are needed.

  7. Shazam is an acronym that represents Billy Batson’s powers. He has the wisdom of Solomon, the strength of Hercules, the stamina of Atlas, the power of Zeus, the courage of Achilles, and the speed of Mercury. By mixing the Greek and Roman mythologies you get SHAZAM! Mary Batson, Billy’s twin sister, can change into a female version of Shazam (she is also referred to as Mary Marvel). She similarly uses the magic word Shazam to change, but originally this was based on a different group of mythological figures: the grace of Selena, the strength of Hippolyta, the skill of Ariadne, the fleetness of Zephyrus, the beauty of Aurora, and the wisdom of Minerva.

  8. This was the original Thor story, before it was revealed that he was a discredited son of Asgard.

  9. The Science and Technology Advanced Research Laboratories, or STAR Labs, are a chain of private research facilities used in DC Comics for a variety of purposes. In the Flash television show, an explosion at STAR labs in Central City was responsible for Barry Allen becoming the Flash, along with the creation of many of the villains he faces.

  10. General Zod was the leader of the Kryptonian Army who tried, unsuccessfully, to take over the planet. Superman’s father (Jor-El) banished him and his minions to the Phantom Zone, which meant he wasn’t on the Krypton when it exploded. When he returns from the Phantom Zone he understandably has it out for Jor-El’s son.

  11. Black Manta is the arch enemy of Aquaman. In their first encounter, Aquaman’s father suffered a heart attack and eventually died. While seeking revenge, Aquaman accidentally killed Black Manta’s father, linking the two forever as mortal enemies.

  12. Smith’s view of the role of government is covered in Book 5 of The Wealth of Nations.

  13. The Amish do have to pay state and federal income taxes and any local sales taxes; however, they are exempt from paying Social Security and Medicare taxes. The Amish are opposed to the idea of insurance on a religious basis and these programs are essentially forced insurances. In the original Medicare bill, passed in 1965, an exemption for religious groups opposed to paying for insurance granted the Amish the privilege of not paying taxes for these purposes. They do, however, have to pay Social Security taxes for their non-Amish employees per a Supreme Court ruling (United States v. Lee, 1982).

  14. The legal disclaimer here is that this suggestion is only a thought exercise. If you think that walking out of a store with a pair of pants you haven’t paid for is a good idea, well, you can deal with the consequences.

  15. Anti-Monitor is a power-hungry force from the anti-matter universe—a parallel universe to ours. His discovery of the existence of the positive matter universe led to the DC event Crisis on Infinite Earths. Anti-Monitor is one of the most powerful villains in DC, having destroyed or absorbed thousands of universes. He has also caused the deaths of heroes like Supergirl and the Flash.

  16. Thanos was born a Titan, a god-like race on one of the moons of Saturn. Unfortunately for him, and eventually the rest of the universe, Thanos carried a physical mutation that left him with purple skin. Eventually he partnered with Mistress Death (not a good thing), and when he was banished from Titan he began his pursuit of the Infinity Stones, a set of crystals with mystical powers he hopes to use to control the universe (also a bad thing). Thanos is connected to the Marvel universe through his battles with the Avengers and the Guardians of the Galaxy.

  17. Etta Candy is Wonder Woman’s best friend and Perry White is the editor of the Daily Planet, the newspaper that employs Clark Kent, neither of whom has superpowers.

  18. A lighthouse is one of economists’ favorite examples of a public good. You can’t keep people from using the light, even if they don’t pay—imagine how difficult that would be, not to mention how you would be placing the paying customers at risk—so it is non-excludable. Also, since the light benefits everyone no matter how many ships’ captains are using it, the lighthouse is non-rival in consumption. Ronald Coase (1974) notes that private firms built many lighthouses in England. Faced with the free-rider problem however, the lighthouse was maintained by a toll on all ships docking in the harbor served by the lighthouse.

  References

  Bendis, B. and Gaydos, M. (2001). Alias, #22. Marvel Comics.

  Bendis, B. and Gaydos, M. (2002). Alias, #7. Marvel Comics.

  Coase, R. (1974). The Lighthouse in Economics. Journal of Law and Economics, 17(2), pp. 357–76.

  Davidson, J. (2015). These are the five richest superheroes. [Online] Money. Available at: http://time.com/money/3950362/richest-superheroes-comic-con/ [Accessed April 4, 2018].

  Duggan, G. and Hawthorne, M. (2016). Deadpool, #2. Marvel Comics.

  Griffith, C. and Hopkins, A. (1997). The Tick: Karma Tornado, #5. New England Comic Press.

  Johns, G. and Frank, F. (2011). Justice League, #0. DC Comics.

  Johns, G. and Lee, J. (2011). Justice League, #6. DC Comics.

  Lee, S. and Ditko, S. (1962). Amazing Fantasy, Issue #15. Marvel Comics.

  Lee, S. and Ditko, S. (1963). The Amazing Spider-Man, Issue #1. Marvel Comics.

  Smith, A. (1994). An Inquiry into the Nature and Causes of the Wealth of Nations. New York: Random House (Originally published in 1776).

  United States v. Lee. [1982]. 455 U.S. 252 (Supreme Court of the United States); 1.

  6

  Give Up Already! When Superheroes Are Fighting Crime, Who Wants to Be a Criminal?

  In a world of superheroes a reasonable question might be: Why do criminals bother to break the law in the face of almost certain capture? Other than pure hubris, why would anyone take to a life of crime with Superman patrolling the sky? The players, heroes, and villains regularly face off against each other and the heroes almost always win. In Injustice: Gods Among Us (Taylor et al., 2016), Joker is annoyed about always losing. Yet Joker’s admission demands a response from the reader of comics. Yes, Joker, you may lose nearly every time, but so what? Within a couple of months, weeks, days, or maybe even hours, you’re back on the street finding new ways to terrorize Gotham. In fact, it seems like there are no prisons built, especially the ones designed to hold supervillains, that can actually hold a supervill
ain. Even Lex Luthor realizes this. He notes that no prison is capable of containing meta-humans for any length of time. Specifically, he has calculated that “eighty-seven percent of all violent meta-humans escape within three months of incarceration. One month if we’re talking about Arkham” (Johns and Fabok, 2015, p. 85).

  The revolving doors that are the famous prisons in the comic book world do a woeful job of preventing prisoners from escaping. Arkham Asylum, Belle Reve, Iron Heights, The Raft, and Ryker’s Island are just some of the prisons in the superhero universe. Arkham is for the certifiably crazy DC Comics psychopaths. Belle Reve and Iron Heights, also reserved for the DC criminal element, are for the slightly more sane, but still extraordinarily dangerous, villains. The Raft, probably the most secure of these big houses, is a maximum-security facility in the middle of the ocean, created by the brightest minds in the Marvel Universe. Think of Alcatraz with some really, really nasty inmates. Ryker’s is an actual prison in New York City’s East River. This is where many lower-level convicts in Marvel stories are housed.

  Criminal activity is often thought of as irrational, and based on the behavior of many of the villains who appear in the comics, that presumption would be entirely correct. Economic models have a difficult time providing adequate predictions of irrational actions. In that we are not alone. It is difficult for any analysis, psychological, sociological, medical, or mathematical, to forecast the random acts that often characterize the criminally deranged. To avoid that uncertainty, economists ground their models on the assumption of rationality. The predictions of models are more likely to be accurate if people aren’t unhinged. While there are some villains who enjoy wreaking havoc for havoc’s sake, much criminal behavior is not as random, or as irrational, as it first appears. Criminals are often quite calculating and economists have found their behavior to be a fascinating Petri dish in which to observe how incentives work.