Friday, October 23, 2009

"Blockbuster or Bomb?"

I like to go to the movies , it is fun to spend a couple of hours escaping into the fantasy of a movie theatre. Back in 1997 the highest grossing movie to date was made , it was called the "Titanic",and it's final gross was over one billion dollars . For those who like big numbers that is one thousand million dollars , WOW!! This is a staggering amount of cash , and it made the "Titanic" the measuring stick for financial success in the movie industry. The movie industry in the United States makes approximately nine hundred movies a year , many of them make far less then the standard set by "Titanic", but still make a substantial amount of money. At present the movie industry has projected sales of 44 billion dollars per anum , another very large amount of cash. Now let's do some math , One trillion is one thousand billions , and one billion is one thousand millions . Our projected national deficit in ten years is 9 trillion dollars. Let's play with some numbers. If Hollywood made their average 900 movies a year for ten years we come up with 9 trillion dollars , that is if each film is as successful as the all-time box office smash "Titanic". If the industry makes the 44 billion it currently pulls in it will make 4.4trillion in ten years. Now we must remember these amounts are income before taxes , which will be considerable. Our nation is looking at a projected debt so large it would take all the money made in Hollywood over the next ten years , if it had banner years back to back the entire time , to come close to resolving the debt ; even at that it would probably come up a little short. This is more borrowed money then this country has ever accumulated in it's entire history! We are in the midst of the largest financial crisis since the depression of the 1930's. Is it logical to take a nation that is on shaky monetary legs and plunge it into great debt? We are also looking at increasing possibility of higher taxes to pay for an expanding agenda of government entitlements that the Obama administration seems very fond of. When a building is on fire is it a good idea to throw kerosene into the blaze? I started this article out by talking about the "Titanic" , and we all know the outcome of that ships voyage. The Obama administration needs to exercise some responsibility in it's fiscal policies . It is sailing through dangerous waters and the entire nation rides on this ship. Captain Ahab lost everything because of his obsession , let's hope "Captain Obama" dosen't do the same thing.

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