Economics of Middle Earth in An Unexpected Journey

[gdl96]

Anybody with a better grasp of economics want to take a stab at this? Or at least a better understanding of the politics of Middle Earth circa the time of the movie?

I understand why the City of Dale was so prosperous (pre-Smaug) as it was explained in the movie that the economy was driven by a wealth of natural resources and skilled labor. So it made sense that they had a marvelous and advanced capital city. And I guess Rivendell is prosperous because...Elven magic? Actually I'm not sure of that, either. Maybe military expansion and fruits of conquest?

I really wonder, however, why there was such poor infrastructure in the Goblin city in the Misty Mountains? There was surely some sort of mining operation going on, which must have been driving there economy. And they must have been prosperous enough to support what seemed to be a large population of goblins. I understand it was ruled by a despot, but even despots like to build nice things in their name. The entirety of their transportation network was comprised of flimsy rope bridges and hanging platforms!! Is there a good explanation for all of this disfunction? Did the Goblins lack access to contemporary financial innovations that allowed for the funding of more advanced construction techniques present in other Middle Earth cities?

Anyone have any thoughts on this?

[Valandil]

I suppose most of their excess resources were devoted to warfare. That - and probably gathering food. They couldn't grow very much of that down there, and probably had to have some cultivated land within reasonable transport distance, or continually sent up foraging parties.

[Ben]

Evidently, goblins just aren't very smart! Or maybe there was more to the city inside the mountain that we didn't see.

[Coffeehouse]

Originally Posted by gdl96

Anybody with a better grasp of economics want to take a stab at this? Or at least a better understanding of the politics of Middle Earth circa the time of the movie?

I understand why the City of Dale was so prosperous (pre-Smaug) as it was explained in the movie that the economy was driven by a wealth of natural resources and skilled labor. So it made sense that they had a marvelous and advanced capital city. And I guess Rivendell is prosperous because...Elven magic? Actually I'm not sure of that, either. Maybe military expansion and fruits of conquest?

I really wonder, however, why there was such poor infrastructure in the Goblin city in the Misty Mountains? There was surely some sort of mining operation going on, which must have been driving there economy. And they must have been prosperous enough to support what seemed to be a large population of goblins. I understand it was ruled by a despot, but even despots like to build nice things in their name. The entirety of their transportation network was comprised of flimsy rope bridges and hanging platforms!! Is there a good explanation for all of this disfunction? Did the Goblins lack access to contemporary financial innovations that allowed for the funding of more advanced construction techniques present in other Middle Earth cities?

Anyone have any thoughts on this?

Good questions GDL!

Basically, these are my two cents.

The infrastructure inside the Misty Mountains did not really strike me as 'poor', but perhaps make-shift, and cost-efficient. Which in Goblin-standard perhaps is more important than longevity. Kind of Orc-like. Goblins also do have a certain marauding reputation, prone to predatory behavior such as looting and scavenging nearby territories. In this regard, salient infrastructure is not really necessary. Rather, it is an unecessary investment.

Furthermore, this loot-seeking labor-intensive behavior, by unskilled workers would render rather irrelevant any need for education or refinement of their architectoral competences. It is, also, not an unheard idea that the Goblins occasionally suffer intrusions by Trolls and other creatures into their lairs. As such, easy-make-easy-fix structures would be favorable than elaborate architecture which a Troll might ruin at the blink of a swing(ing hammer)!

On a last note. Due to the high-risk nature of their marauding economical activities (loot-seeking), the Goblins might favor a cash-up-front payment system rather than a savings-scheme. Kind of spend as you go, as a Goblin probably never lives very long. This would, I'd guess, make redundant anyy possible credit-schemes provided by the Court of the Goblin King. With a lack of any accumulation of savings, with interest, the Court of the Goblin King (let us assume there is a Court, of sorts) essentially would either be dependent on the value of his personal loot and, possibly, taxation of the Goblins. Perhaps a gold coin in the Court coffers for every five gold coins looted by Goblin X. It is not unlikely that the Goblin King, seeming rather despotic, did decree certain taxes. But, in true despotic fashion, probably spent little on public goods, and more on private goods

[Lefty Scaevola]

The goblins have very little trade, because few other than other goblins will deal with them and those that will are far away over hostile territory. They have no means to lever their specialized mining operations into more general wealth.