The university gave our hero scientists funds and a place to work, and they didn’t even have to produce anything — a sharp contrast to the private sector, which actually expects you to create value! (Earlier in the film, viewers see the little “science” Venkman is producing is pure rubbish.)

It gets even better, however. Later in the movie, after the Ghostbusters join the private sector, they actually start creating value by providing a service: trapping ghosts that are haunting people.

For a while, everything goes swimmingly. The Ghostbusters begin racking up so much business that they have to hire another Ghostbuster (Winston Zeddemore, played by Ernie Hudson) to help them handle all the work they’re getting. Their customers, meanwhile, are being rid of the pesky ghosts that are spooking them.

Things go awry, however, when a third party enters the story: the United States government.

[This is a pretty funny essay, but it’s also quite insightful. Miltimore really does use this to make several very good points about public policy and Hayek’s mistrust of the bureaucratic state. That brings us to another economic lesson Miltimore misses, however. What happens when the city experiences a crisis and there’s only a monopoly that can rescue it? Rent-seeking policies imposed by the executive branch! Also dogs and cats living together, mass hysteria, etc etc etc … — Ed]