[Smart Economics] The Talent of the Boy Wonder Who Moved the 20th Century

What Do You Have a Comparative Advantage In?

In 1963, a paid screening of Firelight was held at a small movie theater in Phoenix, Arizona. Firelight was an independent film with a running time of over 140 minutes, and it succeeded in earning more than $500. The director of the war film Firelight, shot on a Kodak 8mm camera, was just a 16-year-old boy. He borrowed $400 from his father to make the film, repaid the debt in full with the screening proceeds, and still cleared a $100 profit. That young director was Steven Spielberg, now a giant of American cinema and one of the greatest film directors of the 20th century.

Spielberg had been a devoted movie lover since childhood. At age 12, after receiving a Kodak 8mm camera as a gift from his parents, he began making short films. At 16, he produced and screened Firelight for paying audiences. After reaching adulthood, he frequented Universal Studios and worked his way up from unpaid intern to TV film director and then theatrical film director. Finally, in 1975, he established himself as a globally successful director with Jaws.

Steven Spielberg: A Director with Both Artistic Merit and Box Office Appeal

After that, Spielberg’s career took off. He produced a string of major hits, including the Indiana Jones series, E.T., and Jurassic Park. He directed not only commercial adventure films but also works known for serious themes and outstanding artistic quality, such as The Color Purple, Empire of the Sun, Schindler’s List, and Saving Private Ryan. Schindler’s List in particular stands out as the film that won Spielberg the Academy Award for Best Director.

Spielberg’s great strength is that he never sacrifices either artistic quality or commercial success. Even in the film industry, where enormous sums of capital are at stake, he is recognized as one of the top box office directors. At the same time, he is an intelligent filmmaker capable of satisfying film festival juries known for their sharp critical standards. Above all, he is a genius director who moves the hearts of countless audiences around the world.

Thanks to this, Steven Spielberg was selected by Time magazine as one of the “100 Most Important People of the 20th Century,” and The Numbers, a website that systematically estimates box office revenue, reported that the total earnings of the films he has directed amount to nearly $14.3 billion. In 2001, he also received the KBE (Knight Commander of the Order of the British Empire) in the United Kingdom. The KBE is an honorary knighthood conferred by the British monarch.

Although born in 1946 and now well past 70, Spielberg continues to work energetically, preparing Indiana Jones 5, scheduled for release in 2021. Films he has directed include Minority Report, Catch Me If You Can, and Indiana Jones 4, while films he has produced include Transformers and Men in Black. In this way, Spielberg continues to present us with one gem of a film after another, displaying tireless vigor even in old age. Today, Spielberg is a master filmmaker who cannot be left out of any discussion of world cinema. Whatever one may think of him or his work, few would dispute that he knows film better than almost anyone and is exceptionally skilled at making movies.

You Need to Specialize in the Area Where You Show Talent to Have a Comparative Advantage

What would have happened if Spielberg had not made films and had done something else instead? Of course, even if he had not made movies, he likely would have gone on steadily building his life through some other work. But there is no guarantee that he would have shown the same sparkling talent in another field. In fact, he might even have fallen behind others, struggling with poor results. Think of Michael Jordan, known in the NBA as “the god of basketball” and a “legend.” On the basketball court, Jordan displayed unmatched excellence, but in minor league baseball he was merely an unremarkable, average player. The reason is that Jordan possessed exceptional talent in basketball—in other words, a comparative advantage specialized in basketball.

The same is true of Spielberg. Compared with others, Spielberg has a comparative advantage specialized in film, and the talent he displayed from childhood supports this. What if Spielberg had chosen a profession other than film director? We might never have shed tears watching E.T. or felt the chilling emotion of Schindler’s List. That is why Spielberg’s becoming a film director, like Jordan’s becoming a basketball player, was a masterstroke and a victory of comparative advantage.

▲ Please remember

What would have happened if Steven Spielberg had not made films and had done something else instead? Of course, even if he had not made movies, he likely would have gone on steadily building his life through some other work. But there is no guarantee that he would have shown the same sparkling talent in another field. In fact, he might even have fallen behind others, struggling with poor results. Spielberg’s becoming a film director was a masterstroke and a victory of comparative advantage.

Sung-no Choi, President, Center for Free Enterprise (CFE)

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Original title: [스마트 경제 읽기] 20세기를 감동시킨 영화신동의 재능

Author: Sung-no Choi

Date: 2020-11-23

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=6&idx=23251