The Economics of the Mafia
Jake Tran Jake Tran
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 Published On May 20, 2020

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You’re a kid growing up in New York in the lower class and you spend your childhood seeing your parents struggling to make ends meet. You see these local wise guys, mafia members, hanging around your neighborhood. You start to idolize them and come to the conclusion that the working man really is the sucker, something that you vow you’ll never be. You set your mind on becoming a mafioso.

The mafia is a business. A typical business makes money by providing value to the world, by solving customer’s problems. The mafia has an advantage. Instead of making money through providing value, they make money by doing the exact opposite. Out of all the different ways they make money: protection money, infiltrating labor unions, or just some good ol’ fashion robber. Most of them revolve around taking value from people by force.

If you want to be a mafioso and command all the status that you so desperately crave - you have to know your place in the organization. You’re one and only duty is to help. make. the family. Money. You can be an earner or be an enforcer. The mafia that operates outside of the law, they’re gonna need someone to enforce their rules and contracts to make sure they get their money. pick your poison, but if you happen to be one of those rare breeds that is great at both… viscous at the negotiating table.

Just like any other well-oiled organization, the military, corporations, etc, the mob has a very well-defined hierarchy and structure that you need to climb. At the bottom of the pyramid are the Associates. The goal of an Associate is to eventually be initiated into the Mafia as a Made Man, with the next rank being a Soldier. To become an Associate as a teenager is pretty simple, the Mob loves grooming kids from the streets when they’re young. Once you’re an Associate, it’s game time.

Make your bones as the ultimate sign of trust. you have to be sponsored by an existing Made Man. Carry out a hit, that you take the life of another human being in the name of the Family.

Now you’re free to move up the ranks. Your duty is to help with the rackets and find new innovative ways to make money for the family. All the different crews of a family take orders from the next level in the chain of command. You have the Boss - the CEO of the family that has the final say on all decisions. You have the family’s Consigliere, the family’s advisor and the Boss’s right-hand-man who’s usually a trusted friend and confidant.
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DISCLAIMER: These videos are for entertainment purposes only. This is not meant to be financial advice. Please always do your due diligence and never stop learning.

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