Economics and the Movies

CNN/Money staff writer Corrin Eckert offers an intriguing theory regarding the relationship between the state of the economy and the types of movies that reap millions at the box office or are rewarded 'Best Picture' at the Academy Awards. Eckert suggests that darker, depressing films succeed in times of recession, while brighter, uplifting films fare well when the economy is strong.

The 1970's support this claim. "The Godfather, Part II" and "One Flew Over the Cuckoo's Nest" were crowned 'Best Picture' in '74 and '75, during a period of severe recession. As America's economy regained its strength, the following two years gave the Oscar to "Rocky" and "Annie Hall," both uplifting, heartfelt films.

The article offers a slightly more recent example: the success of "The Silence of the Lambs" and "Terminator 2" back in 1991, two dark movies that were popular during "extreme economic anxiety and a wavering stock market performance."

But what about the time it takes to make a movie? Movies take an average of 2 to 3 years to create: unless the world is facing a long-standing crises (like a war, for example), a movie will most likely reflect what producers thought people were interested in 2 or 3 years before. Movie critic Peter Reiner states that most recessions do not last long enough to have a real impact on the content of a movie.

Entertainment and Media Analyst, Chris Dixon, says that audiences seek escapism when choosing movies, looking for not only entertainment, but also hope.

According to the CIA's website, "the years 1994-2000 witnessed solid increases in real output, low inflation rates, and a drop in unemployment to below 5%." This makes for a fairly healthy economy, and every film rewarded with the 'Best Picture' Oscar between '94 - '00 were uplifting pics, with the exception of '99's dysfunctional-family black comedy, "American Beauty."

Now consider these past three year's winners: "A Beautiful Mind," "Chicago," and "The Lord of the Rings: The Return of the King." Did the content of these three films correlate with 2001 - 2003's economic conditions? Do you feel that Eckert presents a sound theory?