Tales from the underground economy
A few days ago, NPR's Public Radio International's This American Life re-aired (and podcasted) an incredible story about Nellie Thomas, a black market ammunition dealer on the South side of Chicago. He had so much cash that he didn't know what to do with it, and he didn't trust banks. So he hid it in plastic bags, mattresses, and pillows. His wealth was also a source of agony because he was embarrassed by how he had earned it. So he came up with a curious, inspirational, and funny way to get rid of it. The story, titled "Everything Must Go," was told by Columbia University sociology professor Sudhir Alladi Venkatesh, who had gotten to know Thomas while writing a book called Off the Books: The Underground Economy of the Urban Poor, about people who earn a living running auto repair shops out of alleys, grocery stores in their homes, and other non-traditional businesses. Venkatesh is featured in Freakonomics, and Cory reviewed Off The Books when it came out but I had forgotten all about it. Nellie Thomas's tale hooked me though. I can't wait to read the whole book to hear interesting financial tales that have nothing to do with Wall Street, or "Main Street" for that matter."Everything Must Go" (This American Life), Off the Books: The Underground Economy of the Urban Poor (Amazon)
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Funny, I just listened to that this morning on the bus. Venkatesh is a great storyteller. I should really check out that book.
Reminds me that I am still kicking myself for not dealing drugs after the dotcom bubble. I'd be alot further along financially, but nooooooooo, I had to be a good sport and earn (not very much at all) honestly.
An article on illegal ammunition running and cocaine manufacturing on the same day? I think BoingBoing is trying to tell us something...
A street level arms dealer is someone I have a hard time heaping any sort of praise on.
I see my mistake above. The praise is for the author, but still, that's a lot of respect to give an arms dealer.
URSHREW @3, lest we forget, BB began as an "undeground" publication... ; )
Scratch that #6. He's not an "arms dealer." He's an "ammunition" dealer. Although they are related, the two are distinctly different businesses.
Following up on #4's link and thus to the economics of NYC, I can't help but being struck by the then and now..
For example
http://nymag.com/news/features/2007/profit/32902/
Bought for $1.8 billion, 51% sold for $545 million a 40% decline.
or even better
http://nymag.com/news/features/2007/profit/32901/
"New York’s resurgence since then has been based on innovations in financial services, including junk bonds, leveraged buyouts, mortgage-backed securities, and hedge funds. The flow of innovations was the result of a remarkable concentration of smart people in New York, each learning from the other how to get rich."
Indeed.
He's not an "arms dealer." He's an "ammunition" dealer.
I find that to be like the difference between being a mortgage broker and a mortgage derivatives broker during a bad market?
Although they are related, the two are distinctly different businesses.
Not from the point of view of a dead man. They're no different. Without ammunition a gun is a clumsy, expensive, club.
Without ammunition a gun is a clumsy, expensive, club
And without a gun, bullets are a reeeeeeally tedious way of killing a guy.
By "non-traditional" don't you mean "illegal"? Having a lot of businesses around that don't pay taxes or follow regulations is not really the way to go.
@#11 posted by pauldrye
Aye. I will second that. Personally I found there is just something a bit demeaning about using them as ammo for a slingshot.
This American Life isn't an NPR program--Public Radio International produces it. It gets confusing because public radio stations that are mostly NPR carry it, but it's not one of their programs.
At least he had enough self-respect and humanity in him to feel ashamed of what he had done. He has to wonder how many people were snuffed-out with bullets he provided. Not a good place to be, spiritually.
I'd rather be poor and honest than fat off of blood money.
I remember from reading Freakonomics that the journalist ended up feeling some amount of admiration for the black market businessmen, even though they were doing an illegal and dangerous job, they were showing some initiative and enterprise in the rather bleak environment of the inner city projects. The black market might be the only business some people can do. If you have a record, for example, it is extraordinarily difficult to find employment, and selling drugs, ammo, whatever, might be an intelligent survival strategy.
Wow. Hearing that excerpt on This American Life was like flashback time for me. I remember being poor when I was a kid, the kind of people I knew, making it any way they could. Folks throw around terms like "guilt" and "humanity" without ever having had to live at that level. Nellie, from what I heard, was a fucking pillar of his community for doing what he did. At least he tried to rise above how he made his living and help people with the proceeds instead of using the money to enslave and indebt everyone around him.
As far as his profession goes, I don't think he made that bad of a choice. There are much worse ways of making a living when you have a record and few opportunities in life. After seeing some of the things my friends and cousins have done, I can't really say I could blame him...he's not forcing anybody to buy the bullets.
The Schofield Kid: That was the first one.
Will Munny: First one what?
The Schofield Kid: First one I ever killed.
Will Munny: Yeah?
The Schofield Kid: You know how I said I shot five men? It weren't true. That Mexican that come at me with a knife, I just busted his leg with a shovel. I didn't
kill him or nothing, neither.
Will Munny: Well, you sure killed the hell outta that fella today.
The Schofield Kid: It don't seem real... how he ain't gonna never breathe again, ever... how he's dead. And the other one too. All on account of pulling a trigger.
Will Munny: It's a hell of a thing, killing a man. Take away all he's got and all he's ever gonna have.
The Schofield Kid: Yeah, well, I guess they had it coming.
Will Munny: We all got it coming, kid.
The Schofield Kid: [Referring to his pistol] You go on, keep it. I'm never gonna use it again. I won't kill nobody no more. I ain't like you, Will...
The Schofield Kid: [Referring to the money] Go on, keep it. All of it. It's yours.
Will Munny: What about your spectacles and fancy clothes?
The Schofield Kid: I guess I'd rather be blind and ragged than dead.
@#17 posted by Bill Albertson
I agree. I honestly don't see any thing unethical or immoral about black market weapon/ammo sales. Illegal yes, but not immoral and/or unethical. The only time it would be those is if he was ripping of his customers or the like.
I asked for this book ("Off The Books")for Christmas after reading about it here on BoingBoing.
What an excellent read, a few heartbreaking stories, and an incredible economic treatise.
Highly recommended....
Regardless of whether this guy is a good guy or not, I am interested in checking this book out. Did anyone else see Lord of War, I am really interested in arms dealing on the black market.
Fascinating! Thanks for the link!
The link is to episode 311, where there is no free download. But episode 366, which looks like a copy of the same thing, does have a free download (possibly to disappear on Oct 17 or 18).
I know that truth is supposed to be stranger than fiction, but this story reads a little too fancifully. It says that the story is incredible, but does that mean it's true?