Movies in the 1925 Depression Essay

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Depression is a prolonged slowdown in the economic activities of one or more world economies. It is characterized by mass unemployment, reduction in per-capita GDP, decrease in consumer demand, and reduction in general supply of commodities. Price deflation coupled with rampant bankruptcies reduces the return to production and limits capital available for investment. Though mostly as a result of a crush in one sector of the economy, depression adversely affects close to all other economic organs. The movie industry also finds itself hit by this economic typhoon, as it mostly depends on extra spending from citizens, who must meet their basic needs first.

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From the early 1920s, the movie industry was gaining strength, and there was a mass capital injection into the industry. There was a division of labor as direction, production, and distribution were assigned to different individuals who specialized in these areas. The number of films produced per year steadily increased, as new ideas were being incorporated into the movie industry (Antonowicz par.1). Profits on the other hand were substantial and most of the firms in this line of business were breaking even with huge margins. Generally, the going was smooth and the industry was flourishing as demand increased beyond expectation.

The depression hit hard on the whole economy and Hollywood found itself in this economic crunch (Dirks par. 2). There was a decrease in demand for films, as most people cut short on their luxurious spending to ensure they took care of their pressing requirements. The cinema halls were for a better part of the day, either empty or had half their capacity, given that many people chose to work overtime or take part-time jobs to augment their income. People were also not sure of job security, they, therefore, chose to save in case they lost their jobs, as there were job cuts in every section of the economy in a move to reduce costs. Profits started shrinking while income was declining, yet production was taking place, prompting the need to re-arrange the industry to save it from adverse repercussions of the market crash.

Production of the films was able, however, to go on without much disturbance during this period. Incidentally, the industry had set up systems that were strong enough, to at least cushion it against dire consequences of the depression. The contracts with the actors of the movies were signed in the early 1920s and were to run for very long periods, this helped in the removal of the necessity of contracting during the depression, a move that would have necessitated increases in payments. Additionally, the industry integrated direction, production, and distribution of films to reduce costs incurred in production, hence increasing their profits. To increase the number of collections from theaters, it was important for customer incentive methods to be implemented. Hollywood introduced ruffle tickets, where clients won cash prices or other presents if they went to the movies. The plan worked perfectly for them as customers came streaming to cinema halls. To moviegoers, it was a way of making extra cash to alleviate the economic predicament prevailing at that time. There were mergers in the movie industry which strengthened the capital base of the production companies, making them able to sail through the depression. In Hollywood for instance, the Wagner Brothers merged with The First National, and this gave them a boost to increase the production per year.

The theaters also provided a good haven, for those who wanted to know how the wealthy people were reacting to the economic turmoil, hence contributing to the increased number of moviegoers. The depression in turn formed a very interesting and captivating theme, which the studios capitalized on by producing films highlighting the effects of depression. A Class conflict that was prevalent in the society at the time, was well addressed in the movies in a comical way, where the affluent and middle class mingled in the cinema halls freely encouraging more people to attend (Dirks par.6). In the movie theaters also people momentarily forgot about their economical problems. For a moment they were happy and oblivious of what the depression had done to them, they chose to spend as much time as possible in cinema halls.

Ironically, while the other sectors of the economy were struggling under the depression, the movie industry was at its best, producing at what would turn out to be the highest rate in history. All the factors highlighted above, coupled with the fact that the movie industry was flourishing from the early 1920s, increased the income of studios and their profits. There was a lot of technological improvement in the content and method of production; silent movies though predominant were slowly being replaced by action and horror movies. Production was done in several stages which were handled by specialists to improve the quality of the films, the length of the films also increased tremendously. Movie making became a lucrative business, prompting the injection of a lot of capital into the industry and an increase in the number of studios that produced films (Antonwicz par.3). Theaters were being renovated to include recent state of art equipment and furniture, making them more luxurious joints of entertainment, and more attractive to the high-class people in the society.

The producers in the 1920s also had the self-regulatory mechanism of decorum, which determined what ought to be screened and what was not to be aired. Instead of waiting for the state to determine and set the rules on movie content, the producers chose to take it upon themselves by restricting their production. It was believed that movies could have dire implications on the moral standards of society, and could also influence behavioral change on the youth who would want to copy what the actors do on screen. This included all scenes that involved sexual acts, use of force, and other events which were perceived to hurt society. The industry was also divided into different categories according to class, and the content of production was also made by this stratification. There were the high-class studios that produced relatively expensive material for the wealthy people of the society, where most famous stars of Hollywood featured. Another category, for instance, those found in the shabby areas of Hollywood, produced cheap films using less costly inputs and featured the upcoming stars in the movie industry. It is from this category that most of the horrors and thrillers came from since the self-regulatory principles were less applied.

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The movie industry witnessed most of its upstream development in the 1920s; it had investors who injected a lot of cash, giving the industry a strong economic base that acted as a cushion during the depression. The industry also applied tactics that enabled it to sail through the depression while gaining in terms of income. Actually, during the depression when most of the industries were failing, the movie industry was at its peak producing the highest number of films per year than any decade since then. The financial system that was employed in the early 1920s, and the management processes were very prudent. The technological improvement that took place during the period also made colossal contributions to the industry; morals were upheld, while every member of the society had a film of his or her choice.

Work Cited

Antonowicz, Anton. “Stories Behind The 20s in Color.” The Mirror 2006. Print.

Dirks, Tim. The History of Film: The 1920s. American Movies Classics Company. 2011.

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IvyPanda. (2022) 'Movies in the 1925 Depression'. 11 January.

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IvyPanda. 2022. "Movies in the 1925 Depression." January 11, 2022. https://ivypanda.com/essays/movies-in-the-1925-depression/.

1. IvyPanda. "Movies in the 1925 Depression." January 11, 2022. https://ivypanda.com/essays/movies-in-the-1925-depression/.


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IvyPanda. "Movies in the 1925 Depression." January 11, 2022. https://ivypanda.com/essays/movies-in-the-1925-depression/.

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