The Wolf of Wall Street

This movie, based on Jordan Belfort's memoir (The Wolf of Wall Street), represents economics through the stock market and risk taking. Belfort's argument about economics is that anyone can rig the system to make millions of dollars. 

Credit to The Guardian

Basically Belfort would buy stocks, shares of a company, at small costs ($5 to $10). In order to restrict supply of stocks and make millions, he even had friends buying stocks in their name, and  using his money. When the stocks were at a peak price, all of his employees would sell the shares and make their money. All of his efforts to make millions in minutes demonstrates his skill at predicting the future in the stock market, a skill economists need, and his trust in taking risk.

There are other parts of the memoir and movie that portray economic concepts such as opportunity cost (the cost of giving up one choice to have the benefit of another) of buying certain stocks, and selling at specific times.

After reading parts of Belfort's memoir and various articles about The Wolf of Wall Street, I have come to the conclusion that Belfort's tactics were unprecedented and unconventional. In the end, Belfort was sent to prison and his firm was shut down.

This is an accurate way to describe risk taking and opportunity cost, but Belfort's actions do not demonstrate how the stock market should be used. Belfort scammed the system, and used others to his advantage. 

Written by Colin Bergman

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