The Economics Of The Mafia

October 20, 2014 in Daily Bulletin

Roberto Saviano wrote about the economics of the mob in Italy:

  • New joiners earn as little as $2,500 a month.
  • Income growth is rapid though. Becoming the boss’s right hand man could make you $38,000 a month, and becoming second-in-command gets you $130,000 a month.
  • The groups offer insurance. Stipends go up if an individual has a disabled child.
  • If members are killed, then the family can choose to receive a lump sum of up to $260,000 or a monthly payment.
  • Hits aren’t particularly profitable. Murder bonuses begin at $2,600, and the killer is forced to relocate.
  • The mafia considers robbery and prostitution to be dishonourable so doesn’t really engage in it. It will take a percentage of profits from others engaged in the business though.
  • All in all the life isn’t particularly glamorous. Members are forced to hide their riches, live in tiny underground bunkers, and constantly worry about the lives of their loved ones.
  • People do it more for the benefits that are on offer, than the glamorous lifestyle.

Read about how the mob operates, why one individual was stricken that his jail sentence was only 8 years, and more over here.

Source: Vice

Via: Marginal Revolution