The joke doesn’t work because both transactions were welfare enhancing. In the end, both of them agree that eating shit is worth it to see the other do it. At least $200 of value was created.

Yes. And after overanalyzing it I realized that’s the second level of the joke.

The Economics 101 idea is that value is defined by how much money someone is willing to pay for something. And the satire of that idea is vicious. Because by every measurable standpoint those two economists are worse off coming out of the forest than going in - they’ve both had a exceptionally unpleasant experience and are now at risk for parasites and food poisoning and other health concerns. And yet they’re patting each other on the back saying they created value for the economy.

And there are people on this thread - like you - seriously arguing that watching someone eat shit is worth $100 by definition because someone was willing to pay $100 for it, and therefore the two economists really did create $200 in value.

If that’s what capitalism means by “welfare enhancing” it uses a different definition of welfare than any rational human being ever.

But that’s why economists are the butt of the joke, I guess.

And if you agree with the characters in the joke, the joke is on you.