The Economic Theory of "It's a Wonderful Life"

Beyond the oversimplified, dichotomous models of free markets occupying one extreme on a continuum and command markets pulling at the opposite end emerges the idea of economies being basically fair to those who participate. Interjecting cultural mores into the discussion of economics is invaluable, I believe, if it is our intention to elevate human economic systems above the most primitive forms, such as the biological rules that govern bacteria. In those systems, organisms lacking nervous systems consume everything available without consideration of the overall bug population or long term availability of resources. Our public policy has enacted through unimaginably complicated formulations this most basic economic system: eat what's in front of you.

But this utter scarcity of an idea was not always the dominant one as illustrated by the film, "It's a Wonderful Life." Ideas of fairness are culturally prescribed and subscribed, unique to each nation and culture. When I imagine the film as being a kind of American dream sequence bringing to consciousness matters mulled over deep in the unconscious, I feel I have insight into the collective wish American citizens once had for a fair economy. And by fair, I mean one that protects the dignity of working individuals and their families because, after much hard-earned wisdom, the collective mind had determined this to be the most reasonable course.

In the movie, there were two characters used to establish a counterpoint to the protagonist's, George Bailey, position on fair economic systems. His friend from high school, Sam Wainright, went on to find his fortune in the big city. The other wealthy man was, of course, Mr. Potter, the crippled, perpetually geriatric character who haunts generations of the Bailey boys. As imagined as a kind of dream, I interpret these two characters, Mr.'s Potter and Wainright, as expressions of American's feelings about the way in which primal, even sexual energy is expressed through participation in the economy.

Mr. Potter is throughout the film confined to a wheelchair carved and decorated to resemble a throne. Though he is clearly the economic king of the small town, he is paralyzed from the waist down and so one assumes impotent sexually. He is described by other characters as "frustrated" and "sick in the mind and soul." He represents the neurotic psyche of one cut off from primal energy. Interestingly, this character's first and second chakras would also be inoperative. These represent the root chakra associated with connection to one's tribe and groundings in reality. The second chakra is seat to sexuality and individuality. Mr. Potter could be seen as representing the natural disconnect resulting from unchecked greed expressed through an economic system.

Sam Wainright, conversely, represents overly enacted primal energy within an economic system. He is the one who courts Mary, eventually Mrs. Bailey, via phone call from New York City. A heavily made up woman is touching and caressing Wainright while he is on the phone with another woman. One assumes she is a kind of prostitute, as she does not mind her apparent boyfriend is on the phone with another woman. Here capitalism is imagined as being prone to over-expression of primal energy and immoderate appetites. This character was more sympathetic in the end as he came through for George Bailey when he needed money. Wainright acknowledged the value of the modest, middle man, though he had larger dreams himself. Perhaps deep down we, as Americans, feel it is better to be a little loose with one's primal energy than stingy.

It is George Bailey who represents the accumulated dream of a lively but fair capitalistic system where a man of forceful primal energies moderates these appetites by directing them into endeavors of higher ideals. These as represented by Bailey's lifelong dedication to the savings and loan (which he accepted responsibility for only grudgingly), and the abundant fertility of his marriage to the love of his life. This highly idealized symbol can be seen as a representation of the feelings of the dominant American culture following the Great Depression and World War II. These were people who had lived through the crushing effects of a failed economic dream and the necessary sacrifices of protecting the better interests of the world under threat of fascism.

There was an expressed tolerance for the slightly overwrought libido of the capitalist Wainright, understanding that this energy can push development forward. But it was the intelligent understanding of Bailey, a symbol of passion and sacrifice of one's personal interests towards the higher good that brings forward to consciousness the unconscious wisdom gotten through hardship resulting from excesses in our economic system.

I hope we, as a people, return to this respect for moderated consumption and understand there is a kind of wealth enjoyed by those who work for the higher good of our community not measured in the GDP. At this time, we do not need a wild swing from one form of economic system to another. Instead, we need an economic system energized by possibility and grounded by a deep sense of commitment to each other.