Water Monopoly and Cyclical Unemployment

Boba Fett sees the Water Monger, who has a monopoly on selling water. He’s upset about crime in the area and asking for Boba Fett to intervene. Several interesting things emerge.

  1. It is tough for free markets, and therefore economic growth, to thrive when the rule of law is not present.
  2. The cyborgs complain that there are no jobs available. This seems to be part of a larger downturn in the economy and therefore they are cyclically unemployed – which happens when someone is unemployed not because of a lack of skills or frictions in the labor market, but recessions/depressions
  3. The Water Monger has a monopoly and seemed to be extracting monopoly rents from customers. Boba Fett served to regulate this by setting a price. Governments will often regulate monopolists.

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