The way in which a dealer bought a pig from a peasant.

Excerpt from Reimann's The Vampire Economy: Doing Business Under Fascism:

How cunning ingenuity and "private initiative" circumvent official rules in a country under totalitarian rule can be illustrated by the way in which a dealer bought a pig from a peasant in Nazi Germany.

A peasant was arrested and put on trial for having repeatedly sold his old dog together with a pig. When a private buyer of pigs came to him, a sale was staged according to the official rules. The buyer would ask the peasant: "How much is the pig?" The cunning peasant would answer: "I cannot ask you for more than the official price. But how much will you pay for my dog which I also want to sell?" Then the peasant and the buyer of the pig would no longer discuss the price of the pig, but only the price of the dog. They would come to an understanding about the price of the dog, and when an agreement was reached, the buyer got the pig too. The price for the pig was quite correct, strictly according to the rules, but the buyer had paid a high price for the dog. Afterward, the buyer, wanting to get rid of the useless dog, released him, and he ran back to his old master for whom he was indeed a treasure.

These "combination deals" have an interesting economic aspect. The supplementary article which is sold in order to make the whole transaction as legal as possible is not always an old dog, but, in most cases, an article which may have a certain usefulness in itself, though not necessarily for the buyer. The purchase of these supplementary articles therefore largely amounts to waste of money, made necessary to facilitate the purchase of other more urgently needed articles. Private initiative was wont to seek economies which would increase profits and the productivity of labor. Today, in a society which is laboring under great hardships as the result of scarcity of many essentials, the same goal can be achieved only by purposely arranged waste.

Published Sat, Feb 16 2008 8:20 AM by ayrnieu