The magic of LA has transcended into the economic heft of the United States. Here's how.
Hollywood. The king of entertainment. The absolute peak of stardom. The real symbol of soft power.
It's more than just an industry for the behemoth USA. It's the oil that keeps the engine of economy purring with aplomb. The fact is that its impact is way beyond the mere millions it earns through foreign exchange (by virtue of the successful screenings at theatres & OTT platforms worldwide).
THE BLOCBUSTER GOODS
Why is Nike the cool hip sports brand?
Why is Apple the symbol of luxury & class?
Why is Google so ubiquitous?
Why is Coca Cola the world's most recognised brand?
Why is American cuisine so globally accepted?
Hollywood might just have played a small but significant role in that. You see, these brands are constantly flaunted by the big stars on screen. They are portrayed as must-haves to gain social acceptance in many ways. Apple reportedly doesn't allow villains to use iPhone in movies. That's the amount of power Hollywood has on perception.
Apple to sleazy villains
And corporate America is the throbbing heart of the USA's economic dominance.
Source: McKinsey & Co
The graph above clearly illustrates how integral the business sector is in orchestrating America's economy. And Hollywood has played a big part in taking American companies globally. American films, TV shows & webseries have all played their part. The next time you binge-watch Netflix, look closely at how American brands are given time & space on the screen.
LIVING THE AMERICAN DREAM
Hollywood has also played a massive role in accentuating the brand "America". Millions around the globe wish to emigrate to the US to live the perfect life, again portrayed by Hollywood. It seems to an outsider (and rightly so to a certain extent) that America is a land of opportunity & personal growth. This not only brings aspiring migrants but also skilled professionals who actively contribute to the US economy. The map below aptly illustrates the immigration corridor that seeps Asia & Europe of quality workforce, leading to brain drain.
Source: WIPO
Not only that, but immigrants are also more fiscally responsible & have less debt.
Source: The Brookings Institute
And these immigrants seem to have the entrepreneurial bug as well. A recent American economy study found that immigrants and the children of immigrants founded 45 per cent of U.S. Fortune 500 companies, amassing $6.1 trillion in annual revenue last year. Imagine the mind-boggling impact!
BURGEONING SOFT POWER
Source: Statista
Hollywood's rampant success has also greatly enhanced the country's soft power. This is quite handy as soft power means more influence, increasing a nation's ability to shape the opinion & preference of others through cultural domination. Some examples are:
Eating fast food at the nearest McDonald's is not unhealthy.
Listening to 2pac & Eminem (American rappers) is cool.
Wearing Nike & having an iPhone is a real status symbol.
Looking from a more macro perspective, having soft power is a great asset in international relations as well. It can influence voters at the UNGA & at international forums like the NSG & Five Eyes (which actually matter).
So there you have it. Corporate gains. The American Dream. Soft Power.
That's how Hollywood adds the trillions!
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