title: Sound film

text: The development of commercial sound cinema had proceeded in fits and starts before "The Jazz Singer", and the film's success did not change things overnight. Influential gossip columnist Louella Parsons' reaction to "The Jazz Singer" was badly off the mark: "I have no fear that the screeching sound film will ever disturb our theaters," while MGM head of production Irving Thalberg called the film "a good gimmick, but that's all it was." Not until May 1928 did the group of four big studios (PDC had dropped out of the alliance), along with United Artists and others, sign with ERPI for conversion of production facilities and theaters for sound film. It was a daunting commitment; revamping a single theater cost as much as $15,000 (the equivalent of $220,000 in 2019), and there were more than 20,000 movie theaters in the United States. By 1930, only half of the theaters had been wired for sound.


title: Sound film

text: Initially, all ERPI-wired theaters were made Vitaphone-compatible; most were equipped to project Movietone reels as well. However, even with access to both technologies, most of the Hollywood companies remained slow to produce talking features of their own. No studio besides Warner Bros. released even a part-talking feature until the low-budget-oriented Film Booking Offices of America (FBO) premiered "The Perfect Crime" on June 17, 1928, eight months after "The Jazz Singer". FBO had come under the effective control of a Western Electric competitor, General Electric's RCA division, which was looking to market its new sound-on-film system, Photophone. Unlike Fox-Case's Movietone and De Forest's Phonofilm, which were variable-density systems, Photophone was a variable-area system—a refinement in the way the audio signal was inscribed on film that would ultimately become the standard. (In both sorts of systems, a specially-designed lamp, whose exposure to the film is determined by the audio input, is used to record sound photographically as a series of minuscule lines. In a variable-density process, the lines are of varying darkness; in a variable-area process, the lines are of varying width.) By October, the FBO-RCA alliance would lead to the creation of Hollywood's newest major studio, RKO Pictures.


title: Sound film

text: Meanwhile, Warner Bros. had released three more talkies, all profitable, if not at the level of "The Jazz Singer": In March, "Tenderloin" appeared; it was billed by Warners as the first feature in which characters spoke their parts, though only 15 of its 88 minutes had dialogue. "Glorious Betsy" followed in April, and "The Lion and the Mouse" (31 minutes of dialogue) in May. On July 6, 1928, the first all-talking feature, "Lights of New York", premiered. The film cost Warner Bros. only $23,000 to produce, but grossed $1,252,000, a record rate of return surpassing 5,000%. In September, the studio released another Al Jolson part-talking picture, "The Singing Fool", which more than doubled "The Jazz Singer"'s earnings record for a Warner Bros. movie. This second Jolson screen smash demonstrated the movie musical's ability to turn a song into a national hit: inside of nine months, the Jolson number "Sonny Boy" had racked up 2 million record and 1.25 million sheet music sales. September 1928 also saw the release of Paul Terry's "Dinner Time", among the first animated cartoons produced with synchronized sound. Soon after he saw it, Walt Disney released his first sound picture, the Mickey Mouse short "Steamboat Willie".


title: Sound film

text: Over the course of 1928, as Warner Bros. began to rake in huge profits due to the popularity of its sound films, the other studios quickened the pace of their conversion to the new technology. Paramount, the industry leader, put out its first talkie in late September, "Beggars of Life"; though it had just a few lines of dialogue, it demonstrated the studio's recognition of the new medium's power. "Interference", Paramount's first all-talker, debuted in November. The process known as "goat glanding" briefly became widespread: soundtracks, sometimes including a smatter of post-dubbed dialogue or song, were added to movies that had been shot, and in some cases released, as silents. A few minutes of singing could qualify such a newly endowed film as a "musical." (Griffith's "Dream Street" had essentially been a "goat gland.") Expectations swiftly changed, and the sound "fad" of 1927 became standard procedure by 1929. In February 1929, sixteen months after "The Jazz Singer"'s debut, Columbia Pictures became the last of the eight studios that would be known as "majors" during Hollywood's Golden Age to release its first part-talking feature, "The Lone Wolf's Daughter". In late May, the first all-color, all-talking feature, Warner Bros.' "On with the Show!", premiered.


title: Sound film

text: Yet most American movie theaters, especially outside of urban areas, were still not equipped for sound: while the number of sound cinemas grew from 100 to 800 between 1928 and 1929, they were still vastly outnumbered by silent theaters, which had actually grown in number as well, from 22,204 to 22,544. The studios, in parallel, were still not entirely convinced of the talkies' universal appeal—until mid-1930, the majority of Hollywood movies were produced in dual versions, silent as well as talking. Though few in the industry predicted it, silent film as a viable commercial medium in the United States would soon be little more than a memory. "Points West", a Hoot Gibson Western released by Universal Pictures in August 1929, was the last purely silent mainstream feature put out by a major Hollywood studio.


title: Sound film

text: "The Jazz Singer" had its European sound premiere at the Piccadilly Theatre in London on September 27, 1928. According to film historian Rachael Low, "Many in the industry realized at once that a change to sound production was inevitable." On January 16, 1929, the first European feature film with a synchronized vocal performance and recorded score premiered: the German production "Ich küsse Ihre Hand, Madame" ("I Kiss Your Hand, Madame"). Dialogueless, it contains only a few songs performed by Richard Tauber. The movie was made with the sound-on-film system controlled by the German-Dutch firm Tobis, corporate heirs to the Tri-Ergon concern. With an eye toward commanding the emerging European market for sound film, Tobis entered into a compact with its chief competitor, Klangfilm, a joint subsidiary of Germany's two leading electrical manufacturers. Early in 1929, Tobis and Klangfilm began comarketing their recording and playback technologies. As ERPI began to wire theaters around Europe, Tobis-Klangfilm claimed that the Western Electric system infringed on the Tri-Ergon patents, stalling the introduction of American technology in many places. Just as RCA had entered the movie business to maximize its recording system's value, Tobis also established its own production operations.


title: Sound film

text: During 1929, most of the major European filmmaking countries began joining Hollywood in the changeover to sound. Many of the trend-setting European talkies were shot abroad as production companies leased studios while their own were being converted or as they deliberately targeted markets speaking different languages. One of Europe's first two feature-length dramatic talkies was created in still a different sort of twist on multinational moviemaking: "The Crimson Circle" was a coproduction between director Friedrich Zelnik's Efzet-Film company and British Sound Film Productions (BSFP). In 1928, the film had been released as the silent "Der Rote Kreis" in Germany, where it was shot; English dialogue was apparently dubbed in much later using the De Forest Phonofilm process controlled by BSFP's corporate parent. It was given a British trade screening in March 1929, as was a part-talking film made entirely in the UK: "The Clue of the New Pin", a British Lion production using the sound-on-disc British Photophone system. In May, "Black Waters", which British and Dominions Film Corporation promoted as the first UK all-talker, received its initial trade screening; it had been shot completely in Hollywood with a Western Electric sound-on-film system. None of these pictures made much impact.


title: Sound film

text: The first successful European dramatic talkie was the all-British "Blackmail". Directed by twenty-nine-year-old Alfred Hitchcock, the movie had its London debut June 21, 1929. Originally shot as a silent, "Blackmail" was restaged to include dialogue sequences, along with a score and sound effects, before its premiere. A British International Pictures (BIP) production, it was recorded on RCA Photophone, General Electric having bought a share of AEG so they could access the Tobis-Klangfilm markets. "Blackmail" was a substantial hit; critical response was also positive—notorious curmudgeon Hugh Castle, for example, called it "perhaps the most intelligent mixture of sound and silence we have yet seen."


title: Sound film

text: On August 23, the modest-sized Austrian film industry came out with a talkie: "G'schichten aus der Steiermark" ("Stories from Styria"), an Eagle Film–Ottoton Film production. On September 30, the first entirely German-made feature-length dramatic talkie, "Das Land ohne Frauen" ("Land Without Women"), premiered. A Tobis Filmkunst production, about one-quarter of the movie contained dialogue, which was strictly segregated from the special effects and music. The response was underwhelming. Sweden's first talkie, "Konstgjorda Svensson" ("Artificial Svensson"), premiered on October 14. Eight days later, Aubert Franco-Film came out with "Le Collier de la reine" ("The Queen's Necklace"), shot at the Épinay studio near Paris. Conceived as a silent film, it was given a Tobis-recorded score and a single talking sequence—the first dialogue scene in a French feature. On October 31, "Les Trois masques" ("The Three Masks") debuted; a Pathé-Natan film, it is generally regarded as the initial French feature talkie, though it was shot, like "Blackmail", at the Elstree studio, just outside London. The production company had contracted with RCA Photophone and Britain then had the nearest facility with the system. The Braunberger-Richebé talkie "La Route est belle" ("The Road Is Fine"), also shot at Elstree, followed a few weeks later.


title: Sound film

text: Before the Paris studios were fully sound-equipped—a process that stretched well into 1930—a number of other early French talkies were shot in Germany. The first all-talking German feature, "Atlantik", had premiered in Berlin on October 28. Yet another Elstree-made movie, it was rather less German at heart than "Les Trois masques" and "La Route est belle" were French; a BIP production with a British scenarist and German director, it was also shot in English as "Atlantic". The entirely German Aafa-Film production "It's You I Have Loved" ("Dich hab ich geliebt") opened three-and-a-half weeks later. It was not "Germany's First Talking Film", as the marketing had it, but it was the first to be released in the United States.


title: Sound film

text: In 1930, the first Polish talkies premiered, using sound-on-disc systems: "Moralność pani Dulskiej" ("The Morality of Mrs. Dulska") in March and the all-talking "Niebezpieczny romans" ("Dangerous Love Affair") in October. In Italy, whose once vibrant film industry had become moribund by the late 1920s, the first talkie, "La Canzone dell'amore" ("The Song of Love"), also came out in October; within two years, Italian cinema would be enjoying a revival. The first movie spoken in Czech debuted in 1930 as well, "Tonka Šibenice" ("Tonka of the Gallows"). Several European nations with minor positions in the field also produced their first talking pictures—Belgium (in French), Denmark, Greece, and Romania. The Soviet Union's robust film industry came out with its first sound features in December 1930: Dziga Vertov's nonfiction "Enthusiasm" had an experimental, dialogueless soundtrack; Abram Room's documentary "Plan velikikh rabot" ("The Plan of the Great Works") had music and spoken voiceovers. Both were made with locally developed sound-on-film systems, two of the two hundred or so movie sound systems then available somewhere in the world. In June 1931, the Nikolai Ekk drama "Putevka v zhizn" ("The Road to Life" or "A Start in Life"), premiered as the Soviet Union's first true talking picture.


title: Sound film

text: Throughout much of Europe, conversion of exhibition venues lagged well behind production capacity, requiring talkies to be produced in parallel silent versions or simply shown without sound in many places. While the pace of conversion was relatively swift in Britain—with over 60 percent of theaters equipped for sound by the end of 1930, similar to the U.S. figure—in France, by contrast, more than half of theaters nationwide were still projecting in silence by late 1932. According to scholar Colin G. Crisp, "Anxiety about resuscitating the flow of silent films was frequently expressed in the [French] industrial press, and a large section of the industry still saw the silent as a viable artistic and commercial prospect till about 1935." The situation was particularly acute in the Soviet Union; as of May 1933, fewer than one out of every hundred film projectors in the country was as yet equipped for sound.


title: Sound film

text: During the 1920s and 1930s, Japan was one of the world's two largest producers of motion pictures, along with the United States. Though the country's film industry was among the first to produce both sound and talking features, the full changeover to sound proceeded much more slowly than in the West. It appears that the first Japanese sound film, "Reimai" ("Dawn"), was made in 1926 with the De Forest Phonofilm system. Using the sound-on-disc Minatoki system, the leading Nikkatsu studio produced a pair of talkies in 1929: "Taii no musume" ("The Captain's Daughter") and "Furusato" ("Hometown"), the latter directed by Kenji Mizoguchi. The rival Shochiku studio began the successful production of sound-on-film talkies in 1931 using a variable-density process called Tsuchibashi. Two years later, however, more than 80 percent of movies made in the country were still silents. Two of the country's leading directors, Mikio Naruse and Yasujirō Ozu, did not make their first sound films until 1935 and 1936, respectively. As late as 1938, over a third of all movies produced in Japan were shot without dialogue.


title: Sound film

text: The enduring popularity of the silent medium in Japanese cinema owed in great part to the tradition of the "benshi", a live narrator who performed as accompaniment to a film screening. As director Akira Kurosawa later described, the benshi "not only recounted the plot of the films, they enhanced the emotional content by performing the voices and sound effects and providing evocative descriptions of events and images on the screen... The most popular narrators were stars in their own right, solely responsible for the patronage of a particular theatre." Film historian Mariann Lewinsky argues,


title: Sound film

text: The end of silent film in the West and in Japan was imposed by the industry and the market, not by any inner need or natural evolution... Silent cinema was a highly pleasurable and fully mature form. It didn't lack anything, least in Japan, where there was always the human voice doing the dialogues and the commentary. Sound films were not better, just more economical. As a cinema owner you didn't have to pay the wages of musicians and benshi any more. And a good benshi was a star demanding star payment.


title: Sound film

text: By the same token, the viability of the benshi system facilitated a gradual transition to sound—allowing the studios to spread out the capital costs of conversion and their directors and technical crews time to become familiar with the new technology.


title: Sound film

text: The Mandarin-language "Gēnǚ hóng mǔdān" (, "Singsong Girl Red Peony"), starring Butterfly Wu, premiered as China's first feature talkie in 1930. By February of that year, production was apparently completed on a sound version of "The Devil's Playground", arguably qualifying it as the first Australian talking motion picture; however, the May press screening of Commonwealth Film Contest prizewinner "Fellers" is the first verifiable public exhibition of an Australian talkie. In September 1930, a song performed by Indian star Sulochana, excerpted from the silent feature "Madhuri" (1928), was released as a synchronized-sound short, the country's first. The following year, Ardeshir Irani directed the first Indian talking feature, the Hindi-Urdu "Alam Ara", and produced "Kalidas", primarily in Tamil with some Telugu. Nineteen-thirty-one also saw the first Bengali-language film, "Jamai Sasthi", and the first movie fully spoken in Telugu, "Bhakta Prahlada". In 1932, "Ayodhyecha Raja" became the first movie in which Marathi was spoken to be released (though "Sant Tukaram" was the first to go through the official censorship process); the first Gujarati-language film, "Narsimha Mehta", and all-Tamil talkie, "Kalava", debuted as well. The next year, Ardeshir Irani produced the first Persian-language talkie, "Dukhtar-e-loor". Also in 1933, the first Cantonese-language films were produced in Hong Kong—"Sha zai dongfang" ("The Idiot's Wedding Night") and "Liang xing" ("Conscience"); within two years, the local film industry had fully converted to sound. Korea, where "pyonsa" (or "byun-sa") held a role and status similar to that of the Japanese benshi, in 1935 became the last country with a significant film industry to produce its first talking picture: "Chunhyangjeon" (/) is based on the seventeenth-century pansori folktale "Chunhyangga", of which as many as fifteen film versions have been made through 2009.


title: Sound film

text: In the short term, the introduction of live sound recording caused major difficulties in production. Cameras were noisy, so a soundproofed cabinet was used in many of the earliest talkies to isolate the loud equipment from the actors, at the expense of a drastic reduction in the ability to move the camera. For a time, multiple-camera shooting was used to compensate for the loss of mobility and innovative studio technicians could often find ways to liberate the camera for particular shots. The necessity of staying within range of still microphones meant that actors also often had to limit their movements unnaturally. "Show Girl in Hollywood" (1930), from First National Pictures (which Warner Bros. had taken control of thanks to its profitable adventure into sound), gives a behind-the-scenes look at some of the techniques involved in shooting early talkies. Several of the fundamental problems caused by the transition to sound were soon solved with new camera casings, known as "blimps", designed to suppress noise and boom microphones that could be held just out of frame and moved with the actors. In 1931, a major improvement in playback fidelity was introduced: three-way speaker systems in which sound was separated into low, medium, and high frequencies and sent respectively to a large bass "woofer", a midrange driver, and a treble "tweeter."


title: Sound film

text: There were consequences, as well, for other technological aspects of the cinema. Proper recording and playback of sound required exact standardization of camera and projector speed. Before sound, 16 frames per second (fps) was the supposed norm, but practice varied widely. Cameras were often undercranked or overcranked to improve exposures or for dramatic effect. Projectors were commonly run too fast to shorten running time and squeeze in extra shows. Variable frame rate, however, made sound unlistenable, and a new, strict standard of 24 fps was soon established. Sound also forced the abandonment of the noisy arc lights used for filming in studio interiors. The switch to quiet incandescent illumination in turn required a switch to more expensive film stock. The sensitivity of the new panchromatic film delivered superior image tonal quality and gave directors the freedom to shoot scenes at lower light levels than was previously practical.


title: Sound film

text: As David Bordwell describes, technological improvements continued at a swift pace: "Between 1932 and 1935, [Western Electric and RCA] created directional microphones, increased the frequency range of film recording, reduced ground noise ... and extended the volume range." These technical advances often meant new aesthetic opportunities: "Increasing the fidelity of recording ... heightened the dramatic possibilities of vocal timbre, pitch, and loudness." Another basic problem—famously spoofed in the 1952 film "Singin' in the Rain"—was that some silent-era actors simply did not have attractive voices; though this issue was frequently overstated, there were related concerns about general vocal quality and the casting of performers for their dramatic skills in roles also requiring singing talent beyond their own. By 1935, rerecording of vocals by the original or different actors in postproduction, a process known as "looping", had become practical. The ultraviolet recording system introduced by RCA in 1936 improved the reproduction of sibilants and high notes.


title: Sound film

text: With Hollywood's wholesale adoption of the talkies, the competition between the two fundamental approaches to sound-film production was soon resolved. Over the course of 1930–31, the only major players using sound-on-disc, Warner Bros. and First National, changed over to sound-on-film recording. Vitaphone's dominating presence in sound-equipped theaters, however, meant that for years to come all of the Hollywood studios pressed and distributed sound-on-disc versions of their films alongside the sound-on-film prints. Fox Movietone soon followed Vitaphone into disuse as a recording and reproduction method, leaving two major American systems: the variable-area RCA Photophone and Western Electric's own variable-density process, a substantial improvement on the cross-licensed Movietone. Under RCA's instigation, the two parent companies made their projection equipment compatible, meaning films shot with one system could be screened in theaters equipped for the other. This left one big issue—the Tobis-Klangfilm challenge. In May 1930, Western Electric won an Austrian lawsuit that voided protection for certain Tri-Ergon patents, helping bring Tobis-Klangfilm to the negotiating table. The following month an accord was reached on patent cross-licensing, full playback compatibility, and the division of the world into three parts for the provision of equipment. As a contemporary report describes:


title: Sound film

text: Tobis-Klangfilm has the exclusive rights to provide equipment for: Germany, Danzig, Austria, Hungary, Switzerland, Czechoslovakia, Holland, the Dutch Indies, Denmark, Sweden, Norway, Bulgaria, Romania, Yugoslavia, and Finland. The Americans have the exclusive rights for the United States, Canada, Australia, New Zealand, India, and Russia. All other countries, among them Italy, France, and England, are open to both parties.


title: Sound film

text: The agreement did not resolve all the patent disputes, and further negotiations were undertaken and concords signed over the course of the 1930s. During these years, as well, the American studios began abandoning the Western Electric system for RCA Photophone's variable-area approach—by the end of 1936, only Paramount, MGM, and United Artists still had contracts with ERPI.


title: Sound film

text: While the introduction of sound led to a boom in the motion picture industry, it had an adverse effect on the employability of a host of Hollywood actors of the time. Suddenly those without stage experience were regarded as suspect by the studios; as suggested above, those whose heavy accents or otherwise discordant voices had previously been concealed were particularly at risk. The career of major silent star Norma Talmadge effectively came to an end in this way. The celebrated German actor Emil Jannings returned to Europe. Moviegoers found John Gilbert's voice an awkward match with his swashbuckling persona, and his star also faded. Audiences now seemed to perceive certain silent-era stars as old-fashioned, even those who had the talent to succeed in the sound era. The career of Harold Lloyd, one of the top screen comedians of the 1920s, declined precipitously. Lillian Gish departed, back to the stage, and other leading figures soon left acting entirely: Colleen Moore, Gloria Swanson, and Hollywood's most famous performing couple, Douglas Fairbanks and Mary Pickford. After his acting career collapsed due to his Danish accent, Karl Dane committed suicide. However, the impact of sound on the careers of film actors should not be exaggerated. One statistical analysis of silent actress career length showed that the five-year ‘survival-rate’ of actresses active in 1922 was only 10% greater than those active after 1927. As actress Louise Brooks suggested, there were other issues as well:


title: Sound film

text: Studio heads, now forced into unprecedented decisions, decided to begin with the actors, the least palatable, the most vulnerable part of movie production. It was such a splendid opportunity, anyhow, for breaking contracts, cutting salaries, and taming the stars... Me, they gave the salary treatment. I could stay on without the raise my contract called for, or quit, [Paramount studio chief B. P.] Schulberg said, using the questionable dodge of whether I'd be good for the talkies. Questionable, I say, because I spoke decent English in a decent voice and came from the theater. So without hesitation I quit.


title: Sound film

text: Buster Keaton was eager to explore the new medium, but when his studio, MGM, made the changeover to sound, he was quickly stripped of creative control. Though a number of Keaton's early talkies made impressive profits, they were artistically dismal.


title: Sound film

text: Several of the new medium's biggest attractions came from vaudeville and the musical theater, where performers such as Al Jolson, Eddie Cantor, Jeanette MacDonald, and the Marx Brothers were accustomed to the demands of both dialogue and song. James Cagney and Joan Blondell, who had teamed on Broadway, were brought west together by Warner Bros. in 1930. A few actors were major stars during both the silent and the sound eras: John Barrymore, Ronald Colman, Myrna Loy, William Powell, Norma Shearer, the comedy team of Stan Laurel and Oliver Hardy, and Charlie Chaplin, whose "City Lights" (1931) and "Modern Times" (1936) employed sound almost exclusively for music and effects. Janet Gaynor became a top star with the synch-sound but dialogueless "Seventh Heaven" and "Sunrise", as did Joan Crawford with the technologically similar "Our Dancing Daughters" (1928). Greta Garbo was the one non–native English speaker to retain Hollywood stardom on both sides of the great sound divide. Silent film extra Clark Gable, who had received extensive voice training during his earlier stage career, went on to dominate the new medium for decades; similarly, English actor Boris Karloff, having appeared in dozens of silent films since 1919, found his star ascend in the sound era (though, ironically, it was a non-speaking role in 1931's "Frankenstein" that made this happen, but despite having a lisp, he found himself much in demand after). The new emphasis on speech also caused producers to hire many novelists, journalists, and playwrights with experience writing good dialogue. Among those who became Hollywood scriptwriters during the 1930s were Nathanael West, William Faulkner, Robert Sherwood, Aldous Huxley, and Dorothy Parker.


title: Sound film

text: As talking pictures emerged, with their prerecorded musical tracks, an increasing number of moviehouse orchestra musicians found themselves out of work. More than just their position as film accompanists was usurped; according to historian Preston J. Hubbard, "During the 1920s live musical performances at first-run theaters became an exceedingly important aspect of the American cinema." With the coming of the talkies, those featured performances—usually staged as preludes—were largely eliminated as well. The American Federation of Musicians took out newspaper advertisements protesting the replacement of live musicians with mechanical playing devices. One 1929 ad that appeared in the "Pittsburgh Press" features an image of a can labeled "Canned Music / Big Noise Brand / Guaranteed to Produce No Intellectual or Emotional Reaction Whatever" and reads in part:


title: Sound film

text: This is the case of Art vs. Mechanical Music in theatres. The defendant stands accused in front of the American people of attempted corruption of musical appreciation and discouragement of musical education. Theatres in many cities are offering synchronised mechanical music as a substitute for Real Music. If the theatre-going public accepts this vitiation of its entertainment program a deplorable decline in the Art of Music is inevitable. Musical authorities know that the soul of the Art is lost in mechanization. It cannot be otherwise because the quality of music is dependent on the mood of the artist, upon the human contact, without which the essence of intellectual stimulation and emotional rapture is lost.


title: Sound film

text: In September 1926, Jack L. Warner, head of Warner Bros., was quoted to the effect that talking pictures would never be viable: "They fail to take into account the international language of the silent pictures, and the unconscious share of each onlooker in creating the play, the action, the plot, and the imagined dialogue for himself." Much to his company's benefit, he would be proven very wrong—between the 1927–28 and 1928–29 fiscal years, Warners' profits surged from $2 million to $14 million. Sound film, in fact, was a clear boon to all the major players in the industry. During that same twelve-month span, Paramount's profits rose by $7 million, Fox's by $3.5 million, and Loew's/MGM's by $3 million. RKO, which did not even exist in September 1928 and whose parent production company, FBO, was in the Hollywood minor leagues, by the end of 1929 was established as one of America's leading entertainment businesses. Fueling the boom was the emergence of an important new cinematic genre made possible by sound: the musical. Over sixty Hollywood musicals were released in 1929, and more than eighty the following year.


title: Sound film

text: Even as the Wall Street crash of October 1929 helped plunge the United States and ultimately the global economy into depression, the popularity of the talkies at first seemed to keep Hollywood immune. The 1929–30 exhibition season was even better for the motion picture industry than the previous, with ticket sales and overall profits hitting new highs. Reality finally struck later in 1930, but sound had clearly secured Hollywood's position as one of the most important industrial fields, both commercially and culturally, in the United States. In 1929, film box-office receipts comprised 16.6 percent of total spending by Americans on recreation; by 1931, the figure had reached 21.8 percent. The motion picture business would command similar figures for the next decade and a half. Hollywood ruled on the larger stage, as well. The American movie industry—already the world's most powerful—set an export record in 1929 that, by the applied measure of total feet of exposed film, was 27 percent higher than the year before. Concerns that language differences would hamper U.S. film exports turned out to be largely unfounded. In fact, the expense of sound conversion was a major obstacle to many overseas producers, relatively undercapitalized by Hollywood standards. The production of multiple versions of export-bound talkies in different languages (known as "Foreign Language Version"), as well as the production of the cheaper "International Sound Version", a common approach at first, largely ceased by mid-1931, replaced by post-dubbing and subtitling. Despite trade restrictions imposed in most foreign markets, by 1937, American films commanded about 70 percent of screen time around the globe.


title: Sound film

text: Just as the leading Hollywood studios gained from sound in relation to their foreign competitors, they did the same at home. As historian Richard B. Jewell describes, "The sound revolution crushed many small film companies and producers who were unable to meet the financial demands of sound conversion." The combination of sound and the Great Depression led to a wholesale shakeout in the business, resulting in the hierarchy of the Big Five integrated companies (MGM, Paramount, Fox, Warner Bros., RKO) and the three smaller studios also called "majors" (Columbia, Universal, United Artists) that would predominate through the 1950s. Historian Thomas Schatz describes the ancillary effects:


title: Sound film

text: Because the studios were forced to streamline operations and rely on their own resources, their individual house styles and corporate personalities came into much sharper focus. Thus the watershed period from the coming of sound into the early Depression saw the studio system finally coalesce, with the individual studios coming to terms with their own identities and their respective positions within the industry.


title: Sound film

text: The other country in which sound cinema had an immediate major commercial impact was India. As one distributor of the period said, "With the coming of the talkies, the Indian motion picture came into its own as a definite and distinctive piece of creation. This was achieved by music." From its earliest days, Indian sound cinema has been defined by the musical—"Alam Ara" featured seven songs; a year later, "Indrasabha" would feature seventy. While the European film industries fought an endless battle against the popularity and economic muscle of Hollywood, ten years after the debut of "Alam Ara", over 90 percent of the films showing on Indian screens were made within the country.


title: Sound film

text: Most of India's early talkies were shot in Bombay, which remains the leading production center, but sound filmmaking soon spread across the multilingual nation. Within just a few weeks of "Alam Ara"'s March 1931 premiere, the Calcutta-based Madan Pictures had released both the Hindi "Shirin Farhad" and the Bengali "Jamai Sasthi". The Hindustani "Heer Ranjha" was produced in Lahore, Punjab, the following year. In 1934, "Sati Sulochana", the first Kannada talking picture to be released, was shot in Kolhapur, Maharashtra; "Srinivasa Kalyanam" became the first Tamil talkie actually shot in Tamil Nadu. Once the first talkie features appeared, the conversion to full sound production happened as rapidly in India as it did in the United States. Already by 1932, the majority of feature productions were in sound; two years later, 164 of the 172 Indian feature films were talking pictures. Since 1934, with the sole exception of 1952, India has been among the top three movie-producing countries in the world every single year.


title: Sound film

text: In the first, 1930 edition of his global survey "The Film Till Now", British cinema pundit Paul Rotha declared, "A film in which the speech and sound effects are perfectly synchronised and coincide with their visual image on the screen is absolutely contrary to the aims of cinema. It is a degenerate and misguided attempt to destroy the real use of the film and cannot be accepted as coming within the true boundaries of the cinema." Such opinions were not rare among those who cared about cinema as an art form; Alfred Hitchcock, though he directed the first commercially successful talkie produced in Europe, held that "the silent pictures were the purest form of cinema" and scoffed at many early sound films as delivering little beside "photographs of people talking". In Germany, Max Reinhardt, stage producer and movie director, expressed the belief that the talkies, "bringing to the screen stage plays ... tend to make this independent art a subsidiary of the theater and really make it only a substitute for the theater instead of an art in itself ... like reproductions of paintings."


title: Sound film

text: In the opinion of many film historians and aficionados, both at the time and subsequently, silent film had reached an aesthetic peak by the late 1920s and the early years of sound cinema delivered little that was comparable to the best of the silents. For instance, despite fading into relative obscurity once its era had passed, silent cinema is represented by eleven films in "Time Out"'s Centenary of Cinema Top One Hundred poll, held in 1995. The first year in which sound film production predominated over silent film—not only in the United States, but also in the West as a whole—was 1929; yet the years 1929 through 1933 are represented by three dialogueless pictures ("Pandora's Box" [1929], "Zemlya" [1930], "City Lights" [1931]) and zero talkies in the "Time Out" poll. ("City Lights", like "Sunrise", was released with a recorded score and sound effects, but is now customarily referred to by historians and industry professionals as a "silent"—spoken dialogue regarded as the crucial distinguishing factor between silent and sound dramatic cinema.) The earliest sound film to place is the French "L'Atalante" (1934), directed by Jean Vigo; the earliest Hollywood sound film to qualify is "Bringing Up Baby" (1938), directed by Howard Hawks.


title: Sound film

text: The first sound feature film to receive near-universal critical approbation was "Der Blaue Engel" ("The Blue Angel"); premiering on April 1, 1930, it was directed by Josef von Sternberg in both German and English versions for Berlin's UFA studio. The first American talkie to be widely honored was "All Quiet on the Western Front", directed by Lewis Milestone, which premiered April 21. The other internationally acclaimed sound drama of the year was "Westfront 1918", directed by G. W. Pabst for Nero-Film of Berlin. Historian Anton Kaes points to it as an example of "the new verisimilitude [that] rendered silent cinema's former emphasis on the hypnotic gaze and the symbolism of light and shadow, as well as its preference for allegorical characters, anachronistic." Cultural historians consider the French "L'Âge d'Or", directed by Luis Buñuel, which appeared late in 1930, to be of great aesthetic import; at the time, its erotic, blasphemous, anti-bourgeois content caused a scandal. Swiftly banned by Paris police chief Jean Chiappe, it was unavailable for fifty years. The earliest sound movie now acknowledged by most film historians as a masterpiece is Nero-Film's "M", directed by Fritz Lang, which premiered May 11, 1931. As described by Roger Ebert, "Many early talkies felt they had to talk all the time, but Lang allows his camera to prowl through the streets and dives, providing a rat's-eye view."


title: Sound film

text: "Talking film is as little needed as a singing book." Such was the blunt proclamation of critic Viktor Shklovsky, one of the leaders of the Russian formalist movement, in 1927. While some regarded sound as irreconcilable with film art, others saw it as opening a new field of creative opportunity. The following year, a group of Soviet filmmakers, including Sergei Eisenstein, proclaimed that the use of image and sound in juxtaposition, the so-called contrapuntal method, would raise the cinema to "...unprecedented power and cultural height. Such a method for constructing the sound-film will not confine it to a national market, as must happen with the photographing of plays, but will give a greater possibility than ever before for the circulation throughout the world of a filmically expressed idea." So far as one segment of the audience was concerned, however, the introduction of sound brought a virtual end to such circulation: Elizabeth C. Hamilton writes, "Silent films offered people who were deaf a rare opportunity to participate in a public discourse, cinema, on equal terms with hearing people. The emergence of sound film effectively separated deaf from hearing audience members once again."


title: Sound film

text: On March 12, 1929, the first feature-length talking picture made in Germany had its premiere. The inaugural Tobis Filmkunst production, it was not a drama, but a documentary sponsored by a shipping line: "Melodie der Welt" ("Melody of the World"), directed by Walter Ruttmann. This was also perhaps the first feature film anywhere to significantly explore the artistic possibilities of joining the motion picture with recorded sound. As described by scholar William Moritz, the movie is "intricate, dynamic, fast-paced ... juxtapos[ing] similar cultural habits from countries around the world, with a superb orchestral score ... and many synchronized sound effects." Composer Lou Lichtveld was among a number of contemporary artists struck by the film: ""Melodie der Welt" became the first important sound documentary, the first in which musical and unmusical sounds were composed into a single unit and in which image and sound are controlled by one and the same impulse." "Melodie der Welt" was a direct influence on the industrial film "Philips Radio" (1931), directed by Dutch avant-garde filmmaker Joris Ivens and scored by Lichtveld, who described its audiovisual aims:


title: Sound film

text: To render the half-musical impressions of factory sounds in a complex audio world that moved from absolute music to the purely documentary noises of nature. In this film every intermediate stage can be found: such as the movement of the machine interpreted by the music, the noises of the machine dominating the musical background, the music itself is the documentary, and those scenes where the pure sound of the machine goes solo.


title: Sound film

text: Many similar experiments were pursued by Dziga Vertov in his 1931 "Entuziazm" and by Chaplin in "Modern Times", a half-decade later.


title: Sound film

text: A few innovative commercial directors immediately saw the ways in which sound could be employed as an integral part of cinematic storytelling, beyond the obvious function of recording speech. In "Blackmail", Hitchcock manipulated the reproduction of a character's monologue so the word "knife" would leap out from a blurry stream of sound, reflecting the subjective impression of the protagonist, who is desperate to conceal her involvement in a fatal stabbing. In his first film, the Paramount "Applause" (1929), Rouben Mamoulian created the illusion of acoustic depth by varying the volume of ambient sound in proportion to the distance of shots. At a certain point, Mamoulian wanted the audience to hear one character singing at the same time as another prays; according to the director, "They said we couldn't record the two things—the song and the prayer—on one mike and one channel. So I said to the sound man, 'Why not use two mikes and two channels and combine the two tracks in printing?'" Such methods would eventually become standard procedure in popular filmmaking.


title: Sound film

text: One of the first commercial films to take full advantage of the new opportunities provided by recorded sound was "Le Million", directed by René Clair and produced by Tobis's French division. Premiering in Paris in April 1931 and New York a month later, the picture was both a critical and popular success. A musical comedy with a barebones plot, it is memorable for its formal accomplishments, in particular, its emphatically artificial treatment of sound. As described by scholar Donald Crafton,


title: Sound film

text: "Le Million" never lets us forget that the acoustic component is as much a construction as the whitewashed sets. [It] replaced dialogue with actors singing and talking in rhyming couplets. Clair created teasing confusions between on- and off-screen sound. He also experimented with asynchronous audio tricks, as in the famous scene in which a chase after a coat is synched to the cheers of an invisible football (or rugby) crowd.


title: Sound film

text: These and similar techniques became part of the vocabulary of the sound comedy film, though as special effects and "color", not as the basis for the kind of comprehensive, non-naturalistic design achieved by Clair. Outside of the comedic field, the sort of bold play with sound exemplified by "Melodie der Welt" and "Le Million" would be pursued very rarely in commercial production. Hollywood, in particular, incorporated sound into a reliable system of genre-based moviemaking, in which the formal possibilities of the new medium were subordinated to the traditional goals of star affirmation and straightforward storytelling. As accurately predicted in 1928 by Frank Woods, secretary of the Academy of Motion Picture Arts and Sciences, "The talking pictures of the future will follow the general line of treatment heretofore developed by the silent drama... The talking scenes will require different handling, but the general construction of the story will be much the same."


title: Protectionism

text: Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Proponents argue that protectionist policies shield the producers, businesses, and workers of the import-competing sector in the country from foreign competitors. Opponents argue that protectionist policies reduce trade and adversely affect consumers in general (by raising the cost of imported goods) as well as the producers and workers in export sectors, both in the country implementing protectionist policies and in the countries protected against.


title: Protectionism

text: Protectionism is advocated mainly by parties that hold economic nationalist or left-wing positions, while economically right-wing political parties generally support free trade.


title: Protectionism

text: There is a consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers have a significantly positive effect on economic growth. Some scholars, such as Douglas Irwin, have implicated protectionism as the cause of some economic crises, most notably the Great Depression. Although trade liberalization can sometimes result in large and unequally distributed losses and gains, and can, in the short run, cause significant economic dislocation of workers in import-competing sectors, free trade has advantages of lowering costs of goods and services for both producers and consumers.


title: Protectionism

text: In the modern trade arena, many other initiatives besides tariffs have been called protectionist. For example, some commentators, such as Jagdish Bhagwati, see developed countries' efforts in imposing their own labor or environmental standards as protectionism. Also, the imposition of restrictive certification procedures on imports is seen in this light.


title: Protectionism

text: Further, others point out that free trade agreements often have protectionist provisions such as intellectual property, copyright, and patent restrictions that benefit large corporations. These provisions restrict trade in music, movies, pharmaceuticals, software, and other manufactured items to high-cost producers with quotas from low-cost producers set to zero.


title: Protectionism

text: Historically, protectionism was associated with economic theories such as mercantilism (which focused on achieving positive trade balance and accumulating gold), and import substitution.


title: Protectionism

text: In the 18th century, Adam Smith famously warned against the "interested sophistry" of industry, seeking to gain an advantage at the cost of the consumers. Friedrich List saw Adam Smith's views on free trade as disingenuous, believing that Smith advocated for free trade so that British industry could lock out underdeveloped foreign competition.


title: Protectionism

text: Some have argued that no major country has ever successfully industrialized without some form of economic protection. Economic historian Paul Bairoch wrote that "historically, free trade is the exception and protectionism the rule".


title: Protectionism

text: According to economic historians Douglas Irwin and Kevin O'Rourke, "shocks that emanate from brief financial crises tend to be transitory and have a little long-run effect on trade policy, whereas those that play out over longer periods (the early 1890s, early 1930s) may give rise to protectionism that is difficult to reverse. Regional wars also produce transitory shocks that have little impact on long-run trade policy, while global wars give rise to extensive government trade restrictions that can be difficult to reverse."


title: Protectionism

text: One paper notes that sudden shifts in comparative advantage for specific countries have led some countries to become protectionist: "The shift in comparative advantage associated with the opening up of New World frontiers, and the subsequent “grain invasion” of Europe, led to higher agricultural tariffs from the late 1870s onwards, which as we have seen reversed the move toward freer trade that had characterized mid-nineteenth-century Europe. In the decades after World War II, Japan's rapid rise led to trade friction with other countries. Japan's recovery was accompanied by a sharp increase in its exports of certain product categories: cotton textiles in the 1950s, steel in the 1960s, automobiles in the 1970s, and electronics in the 1980s. In each case, the rapid expansion in Japan's exports created difficulties for its trading partners and the use of protectionism as a shock absorber."


title: Protectionism

text: According to economic historian Douglas Irwin, a common myth about US trade policy is that low tariffs harmed American manufacturers in the early 19th century and then that high tariffs made the United States into a great industrial power in the late 19th century. A review by "The Economist" of Irwin's 2017 book "Clashing over Commerce: A History of US Trade Policy" states:


title: Protectionism

text: Political dynamics would lead people to see a link between tariffs and the economic cycle that was not there. A boom would generate enough revenue for tariffs to fall, and when the bust came pressure would build to raise them again. By the time that happened, the economy would be recovering, giving the impression that tariff cuts caused the crash and the reverse generated the recovery. 'Mr. Irwin' also attempts to debunk the idea that protectionism made America a great industrial power, a notion believed by some to offer lessons for developing countries today. As its share of global manufacturing powered from 23% in 1870 to 36% in 1913, the admittedly high tariffs of the time came with a cost, estimated at around 0.5% of GDP in the mid-1870s. In some industries, they might have sped up development by a few years. But American growth during its protectionist period was more to do with its abundant resources and openness to people and ideas.


title: Protectionism

text: According to Irwin, tariffs have serve three primary purposes in the United States: "to raise revenue for the government, to restrict imports and protect domestic producers from foreign competition, and to reach reciprocity agreements that reduce trade barriers." From 1790 to 1860, average tariffs increased from 20 percent to 60 percent before declining again to 20 percent. From 1861 to 1933, which Irwin characterizes as the "restriction period", the average tariffs increased to 50 percent and remained at that level for several decades. From 1934 onwards, which Irwin characterizes as the "reciprocity period", the average tariff declined substantially until it leveled off at 5 percent.


title: Protectionism

text: Economist Paul Bairoch documented that the United States imposed among the highest rates in the world from around the founding of the country until the World War II period, describing the United States as "the mother country and bastion of modern protectionism" since the end of the 18th century and until the post-World War II period. Alexander Hamilton, the first United States Secretary of the Treasury, was of the view, as articulated most famously in his "Report on Manufactures", that developing an industrialized economy was impossible without protectionism because import duties are necessary to shelter domestic "infant industries" until they could achieve economies of scale. The industrial takeoff of the United States occurred under protectionist policies 1816–1848 and under moderate protectionism 1846–1861, and continued under strict protectionist policies 1861–1945. In the late 19th century, higher tariffs were introduced on the grounds that they were needed to protect American wages and to protect American farmers. Between 1824 and the 1940s, the U.S. imposed much higher average tariff rates on manufactured products than did Britain or any other European country, with the exception for a period of time of Spain and Russia. Up until the end of World War II, the United States had the most protectionist economy on Earth.


title: Protectionism

text: The Bush administration implemented tariffs on Chinese steel in 2002; according to a 2005 review of existing research on the tariff, all studies found that the tariffs caused more harm than gains to the US economy and employment. The Obama administration implemented tariffs on Chinese tires between 2009 and 2012 as an anti-dumping measure; a 2016 study found that these tariffs had no impact on employment and wages in the US tire industry.


title: Protectionism

text: In 2018, EU Trade Commissioner Cecilia Malmström stated that the US was "playing a dangerous game" in applying tariffs on steel and aluminum imports from most countries, and stated that she saw the Trump administration's decision to do so as both "pure protectionist" and "illegal".


title: Protectionism

text: The tariffs imposed by the Trump administration during the China-United States trade war led to a minor reduction in the United States trade deficit with China.


title: Protectionism

text: Europe became increasingly protectionist during the eighteenth century. Economic historians Findlay and O'Rourke write that in "the immediate aftermath of the Napoleonic Wars, European trade policies were almost universally protectionist," with the exceptions being smaller countries such as the Netherlands and Denmark.


title: Protectionism

text: Europe increasingly liberalized its trade during the 19th century. Countries such as Britain, the Netherlands, Denmark, Portugal and Switzerland, and arguably Sweden and Belgium, had fully moved towards free trade prior to 1860. Economic historians see the repeal of the Corn Laws in 1846 as the decisive shift toward free trade in Britain. A 1990 study by the Harvard economic historian Jeffrey Williamson showed that the Corn Laws (which imposed restrictions and tariffs on imported grain) substantially increased the cost of living for British workers, and hampered the British manufacturing sector by reducing the disposable incomes that British workers could have spent on manufactured goods. The shift towards liberalization in Britain occurred in part due to "the influence of economists like David Ricardo", but also due to "the growing power of urban interests".


title: Protectionism

text: Findlay and O'Rourke characterize 1860 Cobden Chevalier treaty between France and the United Kingdom as "a decisive shift toward European free trade." This treaty was followed by numerous free trade agreements: "France and Belgium signed a treaty in 1861; a Franco-Prussian treaty was signed in 1862; Italy entered the “network of Cobden-Chevalier treaties” in 1863 (Bairoch 1989, 40); Switzerland in 1864; Sweden, Norway, Spain, the Netherlands, and the Hanseatic towns in 1865; and Austria in 1866. By 1877, less than two decades after the Cobden Chevalier treaty and three decades after British Repeal, Germany “had virtually become a free trade country” (Bairoch, 41). Average duties on manufactured products had declined to 9–12% on the Continent, a far cry from the 50% British tariffs, and numerous prohibitions elsewhere, of the immediate post-Waterloo era (Bairoch, table 3, p. 6, and table 5, p. 42)."


title: Protectionism

text: Some European powers did not liberalize during the 19th century, such as the Russian Empire and Austro-Hungarian Empire which remained highly protectionist. The Ottoman Empire also became increasingly protectionist. In the Ottoman Empire's case, however, it previously had liberal free trade policies during the 18th to early 19th centuries, which British prime minister Benjamin Disraeli cited as "an instance of the injury done by unrestrained competition" in the 1846 Corn Laws debate, arguing that it destroyed what had been "some of the finest manufacturers of the world" in 1812.


title: Protectionism

text: The countries of Western Europe began to steadily liberalize their economies after World War II and the protectionism of the interwar period.


title: Protectionism

text: Since 1971 Canada has protected producers of eggs, milk, cheese, chicken, and turkey with a system of supply management. Though prices for these foods in Canada exceed global prices, the farmers and processors have had the security of a stable market to finance their operations. Doubts about the safety of bovine growth hormone, sometimes used to boost dairy production, led to hearings before the Senate of Canada, resulting in a ban in Canada. Thus supply management of milk products is consumer protection of Canadians.


title: Protectionism

text: Most Latin American Countries became independent in the early 19th century. They revolted against their colonizers (primarily Spain, France, and Portugal) and set off on their own.


title: Protectionism

text: Following the achievement of their independence, most of the Latin American countries adopted protectionism. They both feared that any foreign competition would stomp out their newly created state and figured that lack of outside resources would drive domestic production.


title: Protectionism

text: Another reason for protectionism was that Latin America was frequently attacked by outsiders. Spain, the United States of America, France, and Texas had all invaded or attempted to invade Latin America by the year 1880. It could be said that Latin America was essentially hiding in its shell trying just to survive in the 19th century.


title: Protectionism

text: Yet the protectionist behavior continued up until and during the World Wars. No Latin American countries got seriously involved with either side. Rather, they just kept harvesting their crops (mostly fruits, tobacco, and sugar) and increasing their exports under an ever-growing tariff rate. During World War 2, Latin America had, on average, the highest tariffs in the world.


title: Protectionism

text: There was a slight decrease in Latin American tariffs after World War 2, when Asia started to become very protectionist in order to rebuild yet the Latin Americans were still there. To this day, there are countries that only trade freely with other Latin American countries.


title: Protectionism

text: There is a broad consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers has a positive effect on economic growth.


title: Protectionism

text: Protectionism is frequently criticized by economists as harming the people it is meant to help. Mainstream economists instead support free trade. The principle of comparative advantage shows that the gains from free trade outweigh any losses as free trade creates more jobs than it destroys because it allows countries to specialize in the production of goods and services in which they have a comparative advantage. Protectionism results in deadweight loss; this loss to overall welfare gives no-one any benefit, unlike in a free market, where there is no such total loss. According to economist Stephen P. Magee, the benefits of free trade outweigh the losses by as much as 100 to 1.


title: Protectionism

text: A 2016 study found that "trade typically favors the poor", as they spend a greater share of their earnings on goods, as free trade reduces the costs of goods. Other research found that China's entry to the WTO benefitted US consumers, as the price of Chinese goods were substantially reduced. Harvard economist Dani Rodrik argues that while globalization and free trade does contribute to social problems, "a serious retreat into protectionism would hurt the many groups that benefit from trade and would result in the same kind of social conflicts that globalization itself generates. We have to recognize that erecting trade barriers will help in only a limited set of circumstances and that trade policy will rarely be the best response to the problems [of globalization]".


title: Protectionism

text: According to economic historians Findlay and O'Rourke, there is a consensus in the economics literature that protectionist policies in the interwar period "hurt the world economy overall, although there is a debate about whether the effect was large or small."


title: Protectionism

text: Economic historian Paul Bairoch argued that economic protection was positively correlated with economic and industrial growth during the 19th century. For example, GNP growth during Europe's "liberal period" in the middle of the century (where tariffs were at their lowest), averaged 1.7% per year, while industrial growth averaged 1.8% per year. However, during the protectionist era of the 1870s and 1890s, GNP growth averaged 2.6% per year, while industrial output grew at 3.8% per year, roughly twice as fast as it had during the liberal era of low tariffs and free trade. One study found that tariffs imposed on manufactured goods increase economic growth in developing countries, and this growth impact remains even after the tariffs are repealed.


title: Protectionism

text: According to Dartmouth economist Douglas Irwin, "that there is a correlation between high tariffs and growth in the late nineteenth century cannot be denied. But correlation is not causation... there is no reason for necessarily thinking that import protection was a good policy just because the economic outcome was good: the outcome could have been driven by factors completely unrelated to the tariff, or perhaps could have been even better in the absence of protection." Irwin furthermore writes that "few observers have argued outright that the high tariffs caused such growth."


title: Protectionism

text: According to Oxford economic historian Kevin O'Rourke, "It seems clear that protection was important for the growth of US manufacturing in the first half of the 19th century; but this does not necessarily imply that the tariff was beneficial for GDP growth. Protectionists have often pointed to German and American industrialization during this period as evidence in favor of their position, but economic growth is influenced by many factors other than trade policy, and it is important to control for these when assessing the links between tariffs and growth."


title: Protectionism

text: A prominent 1999 study by Jeffrey A. Frankel and David H. Romer found, contrary to free trade skeptics' claims, while controlling for relevant factors, that trade does indeed have a positive impact on growth and incomes.


title: Protectionism

text: There is broad consensus among economists that free trade helps workers in developing countries, even though they are not subject to the stringent health and labor standards of developed countries. This is because "the growth of manufacturing—and of the myriad other jobs that the new export sector creates—has a ripple effect throughout the economy" that creates competition among producers, lifting wages and living conditions. The Nobel laureates, Milton Friedman and Paul Krugman, have argued for free trade as a model for economic development. Alan Greenspan, former chair of the American Federal Reserve, has criticized protectionist proposals as leading "to an atrophy of our competitive ability. ... If the protectionist route is followed, newer, more efficient industries will have less scope to expand, and overall output and economic welfare will suffer."


title: Protectionism

text: Protectionists postulate that new industries may require protection from entrenched foreign competition in order to develop. This was Alexander Hamilton's argument in his "Report on Manufactures", and the primary reason why George Washington signed the Tariff Act of 1789. Mainstream economists do concede that tariffs can in the short-term help domestic industries to develop, but are contingent on the short-term nature of the protective tariffs and the ability of the government to pick the winners. The problems are that protective tariffs will not be reduced after the infant industry reaches a foothold, and that governments will not pick industries that are likely to succeed. Economists have identified a number of cases across different countries and industries where attempts to shelter infant industries failed.


title: Protectionism

text: Economists such as Paul Krugman have speculated that those who support protectionism ostensibly to further the interests of workers in the least developed countries are in fact being disingenuous, seeking only to protect jobs in developed countries. Additionally, workers in the least developed countries only accept jobs if they are the best on offer, as all mutually consensual exchanges must be of benefit to both sides, or else they wouldn't be entered into freely. That they accept low-paying jobs from companies in developed countries shows that their other employment prospects are worse. A letter reprinted in the May 2010 edition of Econ Journal Watch identifies a similar sentiment against protectionism from 16 British economists at the beginning of the 20th century.


title: Protectionism

text: Protectionism has also been accused of being one of the major causes of war. Proponents of this theory point to the constant warfare in the 17th and 18th centuries among European countries whose governments were predominantly mercantilist and protectionist, the American Revolution, which came about ostensibly due to British tariffs and taxes, as well as the protective policies preceding both World War I and World War II. According to a slogan of Frédéric Bastiat (1801–1850), "When goods cannot cross borders, armies will."


title: Protectionism

text: Since the end of World War II, it has been the stated policy of most First World countries to eliminate protectionism through free trade policies enforced by international treaties and organizations such as the World Trade Organization. Certain policies of First World governments have been criticized as protectionist, however, such as the Common Agricultural Policy in the European Union, longstanding agricultural subsidies and proposed "Buy American" provisions in economic recovery packages in the United States.


title: Protectionism

text: Heads of the G20 meeting in London on 2 April 2009 pledged "We will not repeat the historic mistakes of protectionism of previous eras". Adherence to this pledge is monitored by the Global Trade Alert, providing up-to-date information and informed commentary to help ensure that the G20 pledge is met by maintaining confidence in the world trading system, deterring beggar-thy-neighbor acts and preserving the contribution that exports could play in the future recovery of the world economy.


title: Protectionism

text: Although they were reiterating what they had already committed to, last November in Washington, 17 of these 20 countries were reported by the World Bank as having imposed trade restrictive measures since then. In its report, the World Bank says most of the world's major economies are resorting to protectionist measures as the global economic slowdown begins to bite. Economists who have examined the impact of new trade-restrictive measures using detailed bilaterally monthly trade statistics estimated that new measures taken through late 2009 were distorting global merchandise trade by 0.25% to 0.5% (about $50 billion a year).


title: Protectionism

text: Since then, however, President Donald Trump announced in January 2017 the U.S. was abandoning the TPP (Trans-Pacific Partnership) deal, saying, “We’re going to stop the ridiculous trade deals that have taken everybody out of our country and taken companies out of our country, and it’s going to be reversed.”


title: Vue.js

text: Vue.js (commonly referred to as Vue; pronounced "view") is an open-source model–view–viewmodel front end JavaScript framework for building user interfaces and single-page applications. It was created by Evan You, and is maintained by him and the rest of the active core team members.


title: Vue.js

text: Vue.js features an incrementally adaptable architecture that focuses on declarative rendering and component composition. The core library is focused on the view layer only. Advanced features required for complex applications such as routing, state management and build tooling are offered via officially maintained supporting libraries and packages.


title: Vue.js

text: Vue.js allows for extending HTML with HTML attributes called directives. The directives offer functionality to HTML applications, and come as either built-in or user defined directives.


title: Vue.js

text: Vue was created by Evan You after working for Google using AngularJS in several projects. He later summed up his thought process: "I figured, what if I could just extract the part that I really liked about Angular and build something really lightweight." The first source code commit to the project was dated July 2013, and Vue was first released the following February, in 2014.


title: Vue.js

text: Version names are often derived from manga and anime, most of which are within the science fiction genre.


title: Vue.js

text: When a new major is released ie v3.y.z, the last minor ie 2.x.y will become a LTS release for 18 months (bug fixes and security patches) and for the following 18 months will be in maintenance mode (security patches only).


title: Vue.js

text: Vue components extend basic HTML elements to encapsulate reusable code. At a high level, components are custom elements to which the Vue's compiler attaches behavior. In Vue, a component is essentially a Vue instance with pre-defined options.


title: Vue.js

text: The code snippet below contains an example of a Vue component. The component presents a button and prints the number of times the button is clicked:


title: Vue.js

text: Vue uses an HTML-based template syntax that allows binding the rendered DOM to the underlying Vue instance's data. All Vue templates are valid HTML that can be parsed by specification-compliant browsers and HTML parsers. Vue compiles the templates into virtual DOM render functions. A virtual Document Object Model (or "DOM") allows Vue to render components in its memory before updating the browser. Combined with the reactivity system, Vue can calculate the minimal number of components to re-render and apply the minimal amount of DOM manipulations when the app state changes.


title: Vue.js

text: Vue users can use template syntax or choose to directly write render functions using hyperscript either through function calls or JSX. Render functions allow applications to be built from software components.


title: Vue.js

text: Vue features a reactivity system that uses plain JavaScript objects and optimized re-rendering. Each component keeps track of its reactive dependencies during its render, so the system knows precisely when to re-render, and which components to re-render.


title: Vue.js

text: Vue provides a variety of ways to apply transition effects when items are inserted, updated, or removed from the DOM. This includes tools to:


title: Vue.js

text: A traditional disadvantage of single-page applications (SPAs) is the inability to share links to the exact "sub" page within a specific web page. Because SPAs serve their users only one URL-based response from the server (it typically serves index.html or index.vue), bookmarking certain screens or sharing links to specific sections is normally difficult if not impossible. To solve this problem, many client-side routers delimit their dynamic URLs with a "hashbang" (#!), e.g. "page.com/#!/". However, with HTML5 most modern browsers support routing without hashbangs.


title: Vue.js

text: Vue provides an interface to change what is displayed on the page based on the current URL path – regardless of how it was changed (whether by emailed link, refresh, or in-page links). Additionally, using a front-end router allows for the intentional transition of the browser path when certain browser events (i.e. clicks) occur on buttons or links. Vue itself doesn't come with front-end hashed routing. But the open-source "vue-router" package provides an API to update the application's URL, supports the back button (navigating history), and email password resets or email verification links with authentication URL parameters. It supports mapping nested routes to nested components and offers fine-grained transition control. With Vue, developers are already composing applications with small building blocks building larger components. With vue-router added to the mix, components must merely be mapped to the routes they belong to, and parent/root routes must indicate where children should render.


title: Market (economics)

text: In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labour power) to buyers in exchange for money. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods. Markets generally supplant gift economies and are often held in place through rules and customs, such as a booth fee, competitive pricing, and source of goods for sale (local produce or stock registration).


title: Market (economics)

text: Markets can differ by products (goods, services) or factors (labour and capital) sold, product differentiation, place in which exchanges are carried, buyers targeted, duration, selling process, government regulation, taxes, subsidies, minimum wages, price ceilings, legality of exchange, liquidity, intensity of speculation, size, concentration, exchange asymmetry, relative prices, volatility and geographic extension. The geographic boundaries of a market may vary considerably, for example the food market in a single building, the real estate market in a local city, the consumer market in an entire country, or the economy of an international trade bloc where the same rules apply throughout. Markets can also be worldwide, see for example the global diamond trade. National economies can also be classified as developed markets or developing markets.


title: Market (economics)

text: In mainstream economics, the concept of a market is any structure that allows buyers and sellers to exchange any type of goods, services and information. The exchange of goods or services, with or without money, is a transaction. Market participants consist of all the buyers and sellers of a good who influence its price, which is a major topic of study of economics and has given rise to several theories and models concerning the basic market forces of supply and demand. A major topic of debate is how much a given market can be considered to be a "free market", that is free from government intervention. Microeconomics traditionally focuses on the study of market structure and the efficiency of market equilibrium; when the latter (if it exists) is not efficient, then economists say that a market failure has occurred. However, it is not always clear how the allocation of resources can be improved since there is always the possibility of government failure.


title: Market (economics)

text: In economics, a market is a coordinating mechanism that uses prices to convey information among economic entities (such as firms, households and individuals) to regulate production and distribution. In his seminal 1937 article "The Nature of the Firm", Ronald Coase wrote: "An economist thinks of the economic system as being coordinated by the price mechanism...in economic theory we find that the allocation of factors of production between different uses is determined by the price mechanism". Thus the usage of the price mechanism to convey information is the defining feature of the market. This is in contrast to a firm, which as Coase put it, "the distinguishing mark of the firm is the super-session of the price mechanism".


title: Market (economics)

text: There are also other hybrid forms of coordinating mechanisms, in between the hierarchical firm and price-coordinating market(e.g. global value chains, Business Ventures, Joint Venture, and strategic alliances).


title: Market (economics)

text: The reasons for the existence of firms or other forms of co-ordinating mechanisms of production and distribution alongside the market are studied in "The Theory of the Firm" literature, with various complete and incomplete contract theories trying to explain the existence of the firm. Incomplete contract theories that are explicitly based on bounded rationality lead to the costs of writing complete contracts. Such theories include: Transaction Cost Economies by Oliver Williamson and Residual Rights Theory by Groomsman, Hart, and Moore.


title: Market (economics)

text: Market-Firms's dichotomy can be contrasted with the relationship between the agents transacting. While in a market the relationship is short term and restricted to the contract, in the case of firms and other co-ordinating mechanisms it is for a longer duration.


title: Market (economics)

text: In the modern world much economic activity takes place through fiat and not the market. Lafontaine and Slade (2007) estimates, in the US, that the total value added in transactions inside the firms equal the total value added of all market transactions. Similarly, 80% of all World Trade is conducted under Global Value Chains (2012 estimate), while 33% (1996 estimate) is intra-firm trade. Nearly 50% of US imports and 30% of exports take place within firms. While Rajan and Zingales (1998) have found that in 43 countries two-thirds of the growth in value added between 1980 and 1990 came from increase in firm size.


title: Market (economics)

text: A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labour) in exchange for money from buyers. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any trade-able item to be evaluated and priced. A market sometimes emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods.


title: Market (economics)

text: Markets of varying types can spontaneously arise whenever a party has interest in a good or service that some other party can provide. Hence there can be a market for cigarettes in correctional facilities, another for chewing gum in a playground, and yet another for contracts for the future delivery of a commodity. There can be black markets, where a good is exchanged illegally, for example markets for goods under a command economy despite pressure to repress them and virtual markets, such as eBay, in which buyers and sellers do not physically interact during negotiation. A market can be organized as an auction, as a private electronic market, as a commodity wholesale market, as a shopping center, as complex institutions such as international markets and as an informal discussion between two individuals.


title: Market (economics)

text: Markets vary in form, scale (volume and geographic reach), location and types of participants as well as the types of goods and services traded. The following is a non exhaustive list:


title: Market (economics)

text: Financial markets facilitate the exchange of liquid assets. Most investors prefer investing in two markets:


title: Market (economics)

text: In economics, a market that runs under laissez-faire policies is called a free market, it is "free" from the government, in the sense that the government makes no attempt to intervene through taxes, subsidies, minimum wages, price ceilings and so on. However, market prices may be distorted by a seller or sellers with monopoly power, or a buyer with monopsony power. Such price distortions can have an adverse effect on market participant's welfare and reduce the efficiency of market outcomes. The relative level of organization and negotiating power of buyers and sellers also markedly affects the functioning of the market.


title: Market (economics)

text: Markets are a system and systems have structure. The structure of a well-functioning market is defined by the theory of perfect competition. Well-functioning markets of the real world are never perfect, but basic structural characteristics can be approximated for real world markets, for example:


title: Market (economics)

text: Markets where price negotiations meet equilibrium, but the equilibrium is not efficient are said to experience market failure. Market failures are often associated with time-inconsistent preferences, information asymmetries, non-perfectly competitive markets, principal–agent problems, externalities, or public goods. Among the major negative externalities which can occur as a side effect of production and market exchange, are air pollution (side-effect of manufacturing and logistics) and environmental degradation (side-effect of farming and urbanization).


title: Market (economics)

text: There exists a popular thought, especially among economists, that free markets would have a structure of a perfect competition. The logic behind this thought is that market failure is thought to be caused by other exogenic systems, and after removing those exogenic systems ("freeing" the markets) the free markets could run without market failures. For a market to be competitive, there must be more than a single buyer or seller. It has been suggested that two people may trade, but it takes at least three persons to have a market so that there is competition in at least one of its two sides. However, competitive markets—as understood in formal economic theory—rely on much larger numbers of both buyers and sellers. A market with a single seller and multiple buyers is a monopoly. A market with a single buyer and multiple sellers is a monopsony. These are "the polar opposites of perfect competition". As an argument against such logic, there is a second view that suggests that the source of market failures is inside the market system itself, therefore the removal of other interfering systems would not result in markets with a structure of perfect competition. As an analogy, such an argument may suggest that capitalists do not want to enhance the structure of markets, just like a coach of a football team would influence the referees or would break the rules if he could while he is pursuing his target of winning the game. Thus, according to this view, capitalists are not enhancing the balance of their team versus the team of consumer-workers, so the market system needs a "referee" from outside that balances the game. In this second framework, the role of a "referee" of the market system is usually to be given to a democratic government.


title: Market (economics)

text: Disciplines such as sociology, economic history, economic geography and marketing developed novel understandings of markets studying actual existing markets made up of persons interacting in diverse ways in contrast to an abstract and all-encompassing concepts of "the market". The term "the market" is generally used in two ways:


title: Market (economics)

text: The earliest works of political economy are usually attributed to the British scholars Adam Smith, Thomas Malthus, and David Ricardo, although they were preceded by the work of the French physiocrats, such as François Quesnay (1694–1774) and Anne-Robert-Jacques Turgot (1727–1781). Smith describes how exchange of goods arose:


title: Market (economics)

text: Microeconomics (from Greek prefix "mikro"- meaning "small" and economics) is a branch of economics that studies the behavior of individuals and small impacting organizations in making decisions on the allocation of limited resources (see scarcity). On the other hand, macroeconomics (from the Greek prefix "makro"- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior and decision-making of an economy as a whole, rather than individual markets.


title: Market (economics)

text: The modern field of microeconomics arose as an effort of neoclassical economics school of thought to put economic ideas into mathematical mode. It began in the 19th century debates surrounding the works of Antoine Augustin Cournot, William Stanley Jevons, Carl Menger and Léon Walras—this period is usually denominated as the Marginal Revolution. A recurring theme of these debates was the contrast between the labor theory of value and the subjective theory of value, the former being associated with classical economists such as Adam Smith, David Ricardo and Karl Marx (Marx was a contemporary of the marginalists). A labour theory of value can be understood as a theory that argues that economic value is determined by the amount of socially necessary labour time while a subjective theory of value derives economic value from subjective preferences, usually by specifying a utility function in accordance with utilitarian philosophy.


title: Market (economics)

text: In his "Principles of Economics" (1890), Alfred Marshall presented a possible solution to this problem, using the supply and demand model. Marshall's idea of solving the controversy was that the demand curve could be derived by aggregating individual consumer demand curves, which were themselves based on the consumer problem of maximizing utility. The supply curve could be derived by superimposing a representative firm supply curves for the factors of production and then market equilibrium (economic equivalent of mechanical equilibrium) would be given by the intersection of demand and supply curves. He also introduced the notion of different market periods: mainly long run and short run. This set of ideas gave way to what economists call perfect competition—now found in the standard microeconomics texts, even though Marshall himself was highly skeptical it could be used as general model of all markets.


title: Market (economics)

text: Around the 1970s the study of market failures came into focus with the study of information asymmetry. In particular, three authors emerged from this period: Akerlof, Spence and Stiglitz. Akerlof considered the problem of bad quality cars driving good quality cars out of the market in his classic "The Market for Lemons" (1970) because of the presence of asymmetrical information between buyers and sellers. Michael Spence explained that signaling was fundamental in the labour market since employers can't know beforehand which candidate is the most productive, a college degree becomes a signaling device that a firm uses to select new personnel. Stiglitz provided some general conditions under which market equilibrium is not efficient: presence of externalities, imperfect information and incomplete markets.


title: Market (economics)

text: C. B. Macpherson identifies an underlying model of the market underlying Anglo-American liberal democratic political economy and philosophy in the seventeenth and eighteenth centuries: persons are cast as self-interested individuals, who enter into contractual relations with other such individuals, concerning the exchange of goods or personal capacities cast as commodities, with the motive of maximizing pecuniary interest. The state and its governance systems are cast as outside of this framework. This model came to dominant economic thinking in the later nineteenth century, as so called liberal economists such as Ricardo, Mill, Jevons, Walras and later neo-classical economics shifted from reference to geographically located marketplaces to an abstract "market". This tradition is continued in contemporary neoliberalism epitomised by the Mont Pelerin Society which gathered Frederick Hayek, Ludwig von Mises, Milton Friedman and Karl Popper, where the market is held up as optimal for wealth creation and human freedom and the states' role imagined as minimal, reduced to that of upholding and keeping stable property rights, contract and money supply. According to David Harvey, this allowed for boilerplate economic and institutional restructuring under structural adjustment and post-Communist reconstruction. Similar formalism occurs in a wide variety of social democratic and Marxist discourses that situate political action as antagonistic to the market. György Lukács, a founder of Western Marxism insists that market relations necessarily lead to undue exploitation of labour and so need to be opposed "in toto".


title: Market (economics)

text: A central theme of empirical analyses is the variation and proliferation of types of markets since the rise of capitalism and global scale economies. The Regulation school stresses the ways in which developed capitalist countries have implemented varying degrees and types of environmental, economic and social regulation, taxation and public spending, fiscal policy and government provisioning of goods, all of which have transformed markets in uneven and geographical varied ways and created a variety of mixed economies.


title: Market (economics)

text: Drawing on concepts of institutional variance and path dependence, varieties of capitalism theorists (such as Peter Hall and David Soskice) identify two dominant modes of economic ordering in the developed capitalist countries:


title: Market (economics)

text: However, such approaches imply that the Anglo-American liberal market economies in fact operate in a matter close to the abstract notion of "the market". While Anglo-American countries have seen increasing introduction of neo-liberal forms of economic ordering, this has not led to simple convergence, but rather a variety of hybrid institutional orderings. Rather, a variety of new markets have emerged, such as for carbon trading or rights to pollute. In some cases, such as emerging markets for water in England and Wales, different forms of neoliberalism have been tried: moving from the state hydraulic model associated with concepts of universal provision and public service to market environmentalism associated with pricing of environmental externalities to reduce environmental degradation and efficient allocation of water resources. In this case liberalization has multiple meanings:


title: Market (economics)

text: In a period of fiscal and ideological crisis, state failure is seen as the catalyst for liberalization, however the failure in assuring water quality can bee seen as a driver for economic and ecological reregulation (in this case coming from the European Union). More broadly the idea of a water market failure can seen as the explanation for state intervention, generating a natural monopoly of hydraulic infrastructure and the regulation of externalities such as water pollution. The situation however is not that simple, as the regulator may have the duty of introducing competition, which can be:


title: Market (economics)

text: Introduction of metering can result in both restriction and increase of consumption with LRMC pricing being the regulator (Ofwat) preferred methodology.


title: Market (economics)

text: Businesses market their products/services to a specific segments of consumers: the defining factors of the markets are determined by demographics, interests and age/gender. A small market is a niche market, while a big market is a mass market. A form of expansion is to enter a new market and sell/advertise to a different set of users.


title: Market (economics)

text: The marketing management school, evolved in the late 1950s and early 1960s, is fundamentally linked with the marketing mix framework, a business tool used in marketing and by marketers. In his paper "The Concept of the Marketing Mix", Neil H. Borden reconstructed the history of the term "marketing mix". He started teaching the term after an associate, James Culliton, described the role of the marketing manager in 1948 as a "mixer of ingredients"; one who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. The functions of total marketing include advertising, personal selling, packaging, pricing, channeling and warehousing. Borden also identified the market forces affecting marketing mix:


title: Market (economics)

text: Borden concludes saying that marketing is more an art than a science. The marketer E. Jerome McCarthy proposed a four Ps classification (product, price, promotion, place) in 1960, which has since been used by marketers throughout the world. Koichi Shimizu proposed a 7Cs Compass Model (corporation, commodity, cost, communication, channel, consumer, circumstances) to provide a more complete picture of the nature of marketing in 1981. Robert F. Lauterborn wrote about the Four P's in 1990


title: Market (economics)

text: He instead advocated a four Cs classification which is a more consumer-oriented version of the four Ps that attempts to better fit the movement from mass marketing to niche marketing:


title: Market (economics)

text: Weber defines "formal rationality of economic action" to designate the extent of quantitative calculation or accounting and "substantive rationality" as the degree a group of persons is or could be adequately provided with good by means of oriented course of social action. A prominent entry-point for challenging the market model's applicability concerns exchange transactions and the "homo economicus" assumption of self-interest maximization. , a number of streams of economic sociological analysis of markets focus on the role of the social in transactions and on the ways transactions involve social networks and relations of trust, cooperation and other bonds. Economic geographers in turn draw attention to the ways exchange transactions occur against the backdrop of institutional, social and geographic processes, including class relations, uneven development and historically contingent path-dependencies. Pierre Bourdieu has suggested the market model is becoming self-realizing in virtue of its wide acceptance in national and international institutions through the 1990s.


title: Market (economics)

text: Michel Callon traces the history of how the market as a place (fairs, flea markets, fish markets) became an abstract concept (market for ideas, dating market, job market) which he calls the interface market model. This abstraction proceeds in three layers:


title: Market (economics)

text: Callon offer the market agencements (heterogenous assemblage) model as an alternative, its features being:


title: Market (economics)

text: Market agencements function through framing, that is action is oriented to a strategic goal (obtaining bilateral transactions), for example market oriented passiva(c)tion:


title: Market (economics)

text: According to Max Weber the spirit of capitalism as preached by Benjamin Franklin is directly connected with utilitarianism, rationalism and Protestantism. Luther calling was not a monastic one but involves the fullfilments of obligations imposed by one's position in the world. The pursuit of money and earthly goods was not viewed positively by Protestantism, the Puritans however emphasized that God blessings, like in the Book of Job, applied also to material life. The limitation of consumption inevitably results in capital accumulation, therefore, for Weber, the Puritan's idea of the calling and ascetic conduct contributed to development of capitalism: saving is an ascetic activity.


title: Market (economics)

text: Embeddedness expresses the idea that the economy is not autonomous but subordinated to politics, religion, and social relations. Polanyi’s use of the term suggests the now familiar idea that market transactions depend on trust, mutual understanding, and legal enforcement of contracts. Michel Callon's concept of framing provides a useful schema: each economic act or transaction occurs against, incorporates and also re-performs a geographically and cultural specific complex of social histories, institutional arrangements, rules and connections. These network relations are simultaneously bracketed, so that persons and transactions may be disentangled from thick social bonds. The character of calculability is imposed upon agents as they come to work in markets and are “formatted” as calculative agencies. Market exchanges contain a history of struggle and contestation that produced actors predisposed to exchange under certain sets of rules. Therefore, for Challon, market transactions can never be disembedded from social and geographic relations and there is no sense to talking of degrees of embeddedness and disembeddeness. During the 20th century two common forms of critique were made: