📸 Photo

MARCHING POWDER

to build in El Alto. And since it was officially denied that prisoners actually paid for their own cells, no one would be refunded any of their purchase money. The first few times this was announced, the prisoners believed the politicians and panicked. Prices dropped overnight because of what Ricardo called a 'fire sale' — hundreds of inmates put 'En Venta' signs on their doors, trying to get anything they could for their rooms.

‘If I’d had money, I could have bought up everything and retired a rich man,’ Ricardo sighed. ‘I did get a cheap television out of it, though,’ he pointed proudly to the cardboard box at the end of his bed where his purchase was sitting. ‘Supposedly, no privileges were going to be allowed in the new prison. It’s amazing what market hysteria will do to people,’ he said, shaking his head at the irrationality of humans.
‘So, it was just a rumour, then?’ I asked. ‘They’re not really going to knock it down?’
‘Of course they’re going to knock it down. Are you stupid? You really don’t understand economics, do you?’

Ricardo had to explain yet again. I got the feeling that he was doing all of this on purpose just to make me look like an idiot and himself look smarter, but I let him get away with it because I was captivated by what he was saying. Besides, he was really quite entertaining when he got in these moods and I liked watching him; he really did seem to think that he was giving an important speech at Harvard.

According to Ricardo, it made sense to knock down San Pedro prison, since the inner-city real estate on which the jail was located was worth millions. After that, they would need to build another prison to house all the inmates, which would require the use of public funds. These public funds would obviously be controlled by corrupt politicians. So, of course it was in their interests to knock down the prison. One day they would actually do it, predicted Ricardo. The only problem was getting the funds from the Americans.

Although fascinating, all these explanations left me more confused than when we began. Before, I had known nothing, but now, with the help of economics, I knew even less. To me, every single one of Ricardo’s arguments went around in circles. No sooner did I think I understood what he was saying than he would deliberately contradict it. Sometimes prices went up, sometimes they went down.