Directing Films (P)

Categories Direction & Production

Format: Paperback

Language: English

Format: PDF / Kindle / ePub

Size: 5.47 MB

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But don't pack for Tinseltown just yet: It turns out the median weekly earnings of non-supervisory film industry workers in 2008 was $627 -- only $19 more than the median weekly earnings of all other industries combined [source: Bureau of Labor Statistics ]. Gosbank and Russian monetary policy: the Gold Standard and gold ruble. a) The chief importance of Gosbank lay in its monetary policies: i) in putting Russia on the international gold standard, in the years 1894 to 1897, ii) indeed as the last major country to join that international group. iii) That success was due to one man: Count Sergei Withe, Minister of Finance, who successfully converted Russia's previous purely fiduciary paper currency (no metallic backing) with a fully, 100% gold-backed paper ruble. b) Its objective was to induce a much greater influx of foreign capital: i) by offering investors the right to repatriate both principal and investment earnings (interest and dividends) in gold -- i.e., in that rubles were convertible into fixed amounts of gold and thus freely exchangeable into any other gold-standard currency. ii) Previously investors faced the uncertainty of returns in unbacked paper rubles, whose values had fluctuated considerably on foreign exchange markets. c) Many historians have criticized this gold ruble monetary policy on three major grounds. i) That it was unnecessary, since large amounts of foreign capital had flowed into Russia for over the ten previous years, since the mid-1880s ii) That it was far too costly: in terms of both (2)and high interest rates to attract foreign gold-backed loans, both of which were used to build up the gold reserves of Gosbank: (3) high taxes and high interest rates, the critics contend, suppressed internal demand iii) Requiring 100% gold backing was an absurdly strict and repressive condition: (1) as was contended for France (when the Bank of France had 50% gold backing), that high gold reserve made both the supply of money and the supply of credit rigidly inelastic, (2) thus curbing potential economic growth. d) The responses to the critics: a justification of the gold ruble policy i) For foreign investments: the gold ruble policy clearly worked: (1) from 1885 to 1897, annual foreign capital inflows had amounted to 43 million rubles = 0.5% of Net National Income; (2) from 1897 to 1913: foreign capital inflows rose 4.4 fold: to an annual mean of 191 million gold rubles = 1.5% of Net National Income ii) Taxation: did it become too severe of a burden? (1) While per capita taxes did rise, in nominal terms, from 5.41 rubles in 1885 to 11.79 rubles in 1910, those values do not take account of the inflation from 1895. (2) Taxes, as a percent of net national income, remained unchanged throughout this period at a stable 13%, while taxes as a percent of gross industrial output fell by half: from 51.3% in 1885 to 25.5% in 1913. (1) While interest rates (central bank discount rates) rose from 6.10% in 1885-90 to a peak of 7.80% in 1895-1900 -- and well more than double those rates found in Berlin and Paris -- the rates then fell, once the gold ruble had proved successful: to a new low of 5.10% in 1908-12. (2) At the same time, the gold reserves of Gosbank also fell, because those previously high levels were no longer needed to command confidence. iv) The money supply: did the gold standard policy make it too inelastic? (1)) The money supply: if M1, narrowly defined, is calculated to include not just notes and coins but also chequable current accounts in the banking system, the evidence supplied by Ian Drummond simply refutes any arguments about an inelastic money supply: (2) there is no correlation between M1 and the gold reserves, (3) M1 rapidly expanded, greatly outpacing the growth of the gold reserves, and continued to grow, exponentially, when gold reserves fell after 1897. c) conclusions: The simple fact is that Russian industrialization after 1885 was totally dependent on the influx of foreign capital. a) Gosbank's role in fostering the growth of private commercial joint-stock banks: i) The chief agency for funnelling the influx of foreign capital were the investment banks, both domestic and foreign; ii) indeed most of the domestic Russian banks came to be taken over (bought up) by foreign banks and investors. iii) The Industrial Depression of 1900-06, the Russo-Japanese War and Russian Revolution of 1905: c) The Role of the Investment Banks, 1906 - 1914: i) the government now left the key role of promoting industrialization to the Investment Banks, which led the great Industrial Boom of 1906-1913, ii) by which time almost half of Russian banks were foreign owned, iii) and so were most of the new heavy industries in Russia. d) Imperialism from such foreign investments? i) Those circumstances had led Vladimir Lenin, the future Bolshevik leader, to publish his seminal book Imperialism: the Highest Stage of Capitalism in 1916. ii) The thesis in essence contended that the New Imperialism was ipso facto the export of capital; iii) and that such capital exports and consequent economic dominance of foreign lands was the mechanism by which western capitalist were seeking to avoid their ultimate fate: (1) to avoid a continual fall in the rate of profit, which would lead to increased exploitation of the working classes, driving them to Revolution and the victory of Communism; (2) and thus they sought to avoid this fate by exporting capital to extract higher rates of profits in less developed countries. i) Finally, we noted that the largest single share of foreign capital came, unexpectedly, from France. ii) The reasons are political, as France sought to build up the Russian economy and military as a counterweight to their new enemy: Imperial Germany E.

Pages: 176

Publisher: Potomac Books (January 2001)

ISBN: 1574883135

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