October 9, 2004, Iowa City

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FILM AND FIRMS Starring Larry E. Ribstein as The
Author

• October 9, 2004, Iowa City
• www.ribstein.org www.ideoblog.org

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Introduction and background

• Films treat business badly.
• Puzzles
• Filmmaking is a business.
• Filmmakers share anti-business attitude.
• Hypothesis films reflect artists economic
  circumstances.
• Data all films treating business.
• Differences from other film studies
• Systematic vs. anecdotal or illustrative.
• Focus on artists and their incentives.
• Film as a cause rather than reflection of social
  attitudes.
• Public choice implications.

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The trouble with business . . .
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. . .is evil capitalists. . .
You and I are such similar creatures we both
screw people for money
He had an ethical bypass at birth.
Ill buy that for a dollar.
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. . . weak employees and . . .
'A,' always, 'B,' be, 'C,' closing, always be
closing
Mackie, how much did you charge?
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. . . weak shareholders.
Do you mean to say any slob in a smelly tee-shirt
will be able to buy Hudsucker stock?
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Good firms have no capitalists. . .
Hey! The only ass-kicking that's gonna be done
around here is gonna be done by me!
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or socially responsible capitalists . . .
Just remember this, Mr. Potter that this rabble
you're talking about, they do most of the working
and paying and living and dying in this
community. Well, is it too much to have them work
and pay and live and die in a couple of decent
rooms and a bath?
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or artistic capitalists.
You're right, I did lose a million dollars last
year. I expect to lose a million dollars this
year. I expect to lose a million dollars next
year. You know, Mr. Thatcher, at the rate of a
million dollars a year, I'll have to close this
place in... 60 years.
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The artist is a hero. . . . .or sellout.
We're only interested in one thing, Bart. Can you
tell a story? Can you make us laugh? Can you make
us cry? Can you make us want to break out in
joyous song? Is that more than one thing?
Nothing's riding on this except the first
amendment to the Constitution, freedom of the
press, and maybe the future of the country.
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The economic theory

• Films require capital, must cover costs.
• The stock market doesnt share artists vision
• The movie spectacular with expensive special
  effects is likely to have a happy ending.
  Tyler Cowen
• This creates resentment.
• The expression of resentment the problem of
  slack
• Other artists
• The capital constraint
• Product market discipline patrons, advertising,
  tickets.
• Broadcast and cable television The Sopranos and
  The Simpsons

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Other Explanations David and Goliath?

• Why not anti-government?
• GhostBusters You've never been in the private
  sector. They expect results.
• Twister

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Historical Trends?
Depression?Film noir?Eisenhower? Viet
Nam?Watergate?Reagan
From
to
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Other theories?

• Portraying a legal entity The Corporation or Tom
  Hanks?
• Conglomerates and studios.
• The audience as workers

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Is this really the way it is?
You know whats wrong with us we dont make
anything.
The government as The good guy?
Prosperity through nastiness?
Luck or skill?
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The political impact of film
Populism Roes theory
The resplendent reality of film
Political impact
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The future of firms in films

• Home video and viewer control
• Film revenue sources product placements
• Making and financing films Digital media and
  the Internet
• Government role in film production?