A statement meme I posted on social media has interestingly developed into a frenzy of rather irregular responses. The meme was to share the ‘inequality’ of pay scales within our entertainment industry we dub to be – Hollywood. It was made in response to the Hollywood strike wherein the uber wealthy upscale self aggrandizing Hollywood elitists are being asked to take a 25% pay cut due to out-of-hand out-of-league payroll contracts.
For example, Barbie was said to cost $145 to $150 million to make. The initial budget was $100 million, therefore costs ran 45%+ ‘over-budget’. But the budget does not reflect the advertising and print, or promotional budget. This budget can cost upwards of an additional 30%-50% of the original expense budget. Hollywood does not reveal these figures. Who gets the ticket sales? Depending on the contract, the studio takes a percentage and theatres take a percentage. But in the end, the popular movies are hedged against the flops for producers, theatres, and outside investors. Based on the original budget of $100 million, Barbie needed to make $300 million to breakeven according to “OttFlask.com”.
Over the past five years, Disney has lost 25% of it’s share value. Financial results for Disney: 2020 – net loss $2.8 billion, and a $4.7 billion ‘comprehensive loss’. The US Film Industry has a market size of just $95 billion spread through 4912 studios. Of the top five film studios, one is owned by Japan, one is owned by China, one is owned by Disney, one is owned by Shari Redstone, and the largest is the Disney conglomerate.
According to the IMF Capitalism is defined within six pillars:
- ownership of private property
- self-interest, through which people act in pursuit of their own good, without regard for sociopolitical pressure
- the allocation of resources, which seek the highest reward for goods. services and wages
- freedom to choose among competitors
- limited role of government.
The only actual pillar that is viable today is #1 – ownership of property.
The Pac-Mans of industry have continued to absorb leaving little competition. The CIA has a heavy hand in the Film Industry. The allocation of resources via wages is dementedly skewed. And sociopolitical pressure owns the industry 100%.
According to Britannica: Socialism requires that the bulk of the means of production workers use to yield goods and services be under the effective control of workers themselves, ie wages. That means when an actor demands $30-$40 million for a film and unions demand hourly wages over $150 to $200 – the actors are in control of the film and the workers under him/her. A Socialist ideology in practice.
Labor Value is defined as: “a theory of value that argues that the economic value of a good or service is determined by the total amount of “socially necessary labor” required to produce it. It is a Marxian concept – that has been levied in anarchist economics. Marx’ value theory is based solely on a laborer producing capital goods. Capital goods are durable commodities.
In the Barbie movie context – the two stars captured over 17% of the entire budget.
So why do Hollywood studios pay these exorbitant wages for drivel movies of zero consequence? Why would any adult desire to see a film about plastic dolls? I have no answer.
We also have ball players. Today, that fun sport has become the Sports Industry, because ‘playing ball’ is competitive. Essentially, it is simply another form of entertainment.
Up until 2015, the NFL was a tax exempt entity, like a charity. In a truly Capitalist society, there would be no charities – “to each according to their means”. In addition, the NFL charitable status would imply that any person or entity who gave money or goods to the NFL would be entitled to a tax writeoff. Including ticket sales.
In 2022, the NFL revenue was $18 billion. The largest source of revenue was the Media. For 2022, the NFL Profit Margin After Tax was 1.54%.
We have completely diluted the value of Capitalism thru illusion. We have welfare, subsidies, food stamps, HUD housing, Medicaid, charitable deductions, government manipulation, government bailouts, and tax free politically biased NGO’s. ALL of which define the US as a Socialist country.
Unfortunately, we also have a highly corrupt government committing egregious crimes without any punishment. That would be defined as Totalitarian.
The only pillar keeping America from complete Dictatorship/Communism is the freedom of property ownership. The singular pillar that the WEF is attempting to remove. How? Through forcible Debt Default.
The Federal Reserve again raised interest rates.
The 22 year high for the Federal Rate will destroy borrowing. A 30 year fixed mortgage rate is just below 8% with above average credit, $-0- points, and 20% down. To put it in perspective – a $500,000 purchase price at the pre-Brandon interest rate of 3% would levy a mortgage payment of $1686 per month. Today, using a 7.39% best scenario rate – the payment would increase by $1100 monthly. In order to reach that $1686 monthly payment the maximum purchase price would be $300,000.
In order for an insurance company to be able to rebuild at the going rate – they would necessarily have to increase property insurance rates. This year, mine rose 35%.
The Federal Reserve was a Socialist construct – arbitrarily creating bubbles and busts to our economy. There is absolutely NOTHING Capitalist left.
As basic costs wipe out more and more income, welfare will increase. In order to pay for the increased cost of welfare entitlements, taxes will have to rise. When middle class taxes rise, people buy less causing business sales to plummet. More Pac-Men gobble. Less Competition. And soon the ownership pillar of America is effectively destroyed. With the advent of AI – Entertainment will die. There will be no need for script writers, actors, directors, or sets. With the advent of AI – The Sports Industry will die. The games will pit AI against AI with a flush Betting Industry the only game in town!
This RESET will ultimately trickle up to higher and higher incomes and reflect the children’s book by Eric Carle, The Greedy Python. The Greedy Python is quick to gobble up every creature he meets–including to his own great misfortune, himself, when he mistakes the tip of his tail for a lunchtime treat.
However – It can all be unraveled IF We Want it to enough…