There are a number of economic lessons in this flick for those who know what to look for.
Currently the new movie Twisters is performing strong in the box office, and while it has been credited as a stand-alone-sequel, it does pay homage to the original Twister and makes re-watching the 1996 flick worthwhile. I loved Twister as a teenager, and upon seeing it again, I have discovered several aspects that relate to Austrian economics and free-market principles. And since I love any reason to relive my youth as well as discuss business matters, let’s dive into a quick overview of the movie and sprinkle in some economic quotes that stand the test of time.
The Premise
From the start, the ’90s Twister movie is action-packed, with back-to-back tornadoes and a plethora of close encounters. The main characters seem to be constantly running to and away from dangerously stormy skies. The stars of the film, Helen Hunt and Bill Paxton, are determined to accomplish one thing—to get Dorothy to fly. Dorothy is a piece of equipment holding data sensors that, if released in what Philip Seymour Hoffman’s character calls the “suck zone,” could improve storm-tracking capabilities and thereby increase tornado warning times.
Experimentation is key when it comes to leveraging new innovations, and this is certainly the case for Dorothy. Safety standards, policy procedures, and operational licensing aren’t a concern for the characters in this film, and the classic idiom “nothing ventured, nothing gained” sums up the mindsets of all involved. And while Dorothy is a powerful piece of technology, it is only as good as the individuals who dreamed it up and is only of use if it is turned on and dropped off at just the right time and place, which (spoiler alert) takes four tries. As such, the below quote from F. A. Hayek’s The Constitution of Liberty, first published in 1960, seems applicable for illustrating an underlying message of this movie:
What matters is the successful striving for what at each moment seems unattainable. It is not the fruits of past success but the living in and for the future in which human intelligence proves itself.
The People
Human action is without a doubt the focus of the film (made obvious by its theme song, “Humans Being” by Van Halen), and fans of Austrian economics know that no one drew greater attention to the role of individuals and ingenuity than Ludwig von Mises. In Mises’s magnum opus, Human Action, he asserts, “Everything that is thought, done and accomplished is a performance of individuals. New ideas and innovations are always an achievement of uncommon men.” And the characters in Twister are about as uncommon as you can get.
Helen Hunt plays Jo and is the only storm-chaser that has witnessed an F5 tornado and, having lost her father to it when she was young, she’s determined to save future lives from such storms. Bill Paxton’s character, coincidentally named Bill, is a “human barometer” with the ability to sense what the skies are doing. Bill also has the nickname “The Extreme,” due to his history of death-defying behavior. It is fitting for both Jo and Bill to be the inventors of Dorothy, as well as each other’s love interest, given their willingness to take risks and their desire to challenge the status quo. Jo and Bill have the competence and courage to test the bounds of reality for impacting the world around them. Thus, Twister connects well with what is reiterated throughout Mises’s 1933 book Epistemological Problems of Economics:
Goals change, ideas of technology are transformed, but action always remains action. Action always seeks means to realize ends, and it is in this sense always rational and mindful of utility. It is, in a word, human.
The Purpose
Self-direction, operational autonomy, and risk-taking are all prevalent throughout the film, but the importance of human capital is also undeniable. During each storm chase, Jo and Bill’s team communicate constantly with each other, and while it is clear who is in charge, asking permission is never needed, since a level of trust has already been established. The team improvise as needed and leverage whatever resources are available to get Dorothy in the air. In fact, their limited means fosters creativity as they drive through farm fields, attach remnants of soda cans to sensors, and seem to survive on to-go coffee that they rarely get a chance to drink.
Overall, the team is made up of eclectic individuals with diverse skill sets, but their self-interests are clearly aligned—in terms of storm-chasing as well as when it comes to saving Jo’s Aunt Meg. When a storm touches down in Meg’s town, it is Meg’s safety that takes precedence, and the team pivots their focus to getting Meg help rather than getting Dorothy in the air. The words of wisdom from Carl Menger’s 1871 treatise Principles of Economics are therefore most appropriate here, given that individuals not only generate that which is of value, but also determine what is valuable:
Value is nothing inherent in goods, no property of them, nor an independent thing existing by itself. It is a judgment economizing men make about the importance of goods at their disposal for the maintenance of their lives and well-being. Hence value does not exist outside the consciousness of men.
The Point of Contention
So far I have been praising this movie, but there is one area that irks me. Early on in the film we meet Jo and Bill’s rival, Jonas, played perfectly by Cary Elwes. Jonas has a copycat version of Dorothy and a self-centered rather than self-interested way of life (to understand the difference, read Ayn Rand). Thanks to corporate-backed sponsorships, Jonas has the highest-grade equipment available, but his technology is no match for Bill’s intuition—and (spoiler alert) it will later cost Jonas his life.
There is no doubt that Jonas’s moral character is lacking, having stolen Jo and Bill’s idea, but the automatic demonization of private investors or his pursuit of profit seems uncalled for (at one point in the film Bill asserts that Jonas is “in it for the money, not the science”). Plenty of inventions and innovations have been derived from not just passion, but also the pursuit of profit potential. Indeed, many of us seek out opportunities, wages, and experiences from which we can profit.
Profit serves as a tool for signaling what is of value in the market, and smart entrepreneurs seek out profitable opportunities—and (as evidenced by Elwes’s character) the greater the reward, typically the greater the risk involved.
There is nothing wrong with seeking out funds from those who are willing to risk it on you at only a cost to themselves (unlike government grants which place the burden on taxpayers). And private enterprises tend to be not only more entrepreneurial, but also more resourceful and sustainable (when Bill is searching for Jo at the beginning of the movie, Hoffman’s character states, “She’s over by Doppler. Broke down again, running out of grant money”).
Private equity and corporate investment can be a powerful mechanism for scaling innovations, and so it is disheartening when, at the end of the movie (spoiler alert), after Dorothy successfully takes flight, Jo bursts out with “I’ve got to get grant approvals for a new warning system…”
To make Twister a true beacon for those with an entrepreneurial mindset and a film that really praises human potential, I’d like to recommend a rewrite of the script’s closing scene.
Jo: I’ve got to get grant approvals for a new warning system, we need a bigger lab, you’ve got to do an analysis of all that data…
Bill: No, Jo. This time we’re going to do it right. We’re going to seek out funds from private investors who believe in what we do and want to risk it all with us. Let’s not bother with grant proposals or engage in rent-seeking.
Jo: You’re right! Any savvy investor is going to want in on this, and I will finally be able to build the type of lab I want and test out new equipment!
Bill: The possibilities are endless, Jo. We’re not only going to build a bigger lab; we’re going to go global with hubs stationed all around the world! And we’ll attract top-tier talent by finally being able to pay people what they deserve.
Jo: I can’t wait to give our current crew a huge raise! And we can hire managers and analysts for the labs so we can all stay in the field doing what we love—chasing storms.
Bill: Think of how many lives we’ll save by scaling our work and licensing out our inventions.
Jo: I can see it now… instead of taking money from taxpayers via the government, someday the government may be in need of our help and capital investments… just like it’s doing right now with Elon Musk and the stranded American astronauts.
Bill: That’s right! SpaceX is to the rescue. And for us, Dorothy will be known around the world as a life saver.
Jo: Oh, Bill, profit is a beautiful thing.
{Jo and Bill kiss as the music for the credits come on (“Respect the Wind”), camera goes into aerial view, and then credits start. Then fade to clouds in fast-forward motion.}
Okay, I know that is a cheesy ending, but it is a ’90s film, so it could work. And if you enjoyed this review, check out my article on Tommy Boy (another classic released in the mid ’90s), and be wary of any movie that positions Big Business as a villain rather than a value creator.
