1/5/25
Economics of Squid Game
Author: Dhruv Kumar
Editor: David Sun
In a world filled with economic despair, Squid Game showcases the extent to which people are willing to go to achieve financial stability. The popular series portrays the struggles of people facing overwhelming debt, putting regular individuals in extreme situations where life and death depend on childhood games. Season 2 premiered on December 26th, and got 68 million views in its first three days on Netflix, setting a new record for the most views on a series in its debut week. Would you risk your life for 45.6 billion won?
To start, all the members of the games had an immense amount of debt, highlighting the debt crisis in the real world. On top of that, they all came from marginalized groups burdened by financial obligations, emphasizing the income inequality present in society. Additionally, this show sheds light on key economic principles such as scarcity and opportunity cost. Since all players are competing for a massive cash prize, it creates a situation where the potential for great reward outweighs the risk of participating, similar to how people make financial decisions in real life, whether it's taking on high-interest loans, investing in risky ventures, or compromising ethics for money. The concept of opportunity cost also plays a major role in the show as each player weighs the value of their life against the chance to win the prize, often leading them to make desperate decisions.
Moreover, Squid Game also highlights the role of incentives in shaping human behavior. The promise of 45.6 billion won is a powerful motivator that drives players to form alliances, betray their teammates, and make morally questionable choices. In economics, incentives are the forces that drive individuals to act in certain ways. In Squid Game, the life-altering reward pushes the participants to abandon their morals and engage in risky, often life-threatening, behavior.