Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Wednesday, March 2, 2011

Charlie Sheen Is Crazy, But Is He Helping the Economy?

An article in Daily Finance discusses the possibility of Charlie Sheen's recent stunts to be good news for a lot of people. The biggest winners in this situation are the tabloids. There's always a lot of celebrity gossip, but seldom are there topics that everyone is constantly discussing. And the people that don't know what's going on will want to be in the loop soon, and what better way than to buy a magazine with an extensive story on the whole thing. As demand for their products increase, they can increase their prices and also increase production. It's probably not a big enough production increase to affect employment, but it does affect products produced, which helps the nation's GDP.
It seems as though CBS would be hurt by Charlie's behavior, but it's actually doing just fine. Even though new Two and a Half Men episodes aren't airing right now, more and more people are tuning in for the re-runs. This way, advertisers still get their money's worth and they get it on people who may not watch CBS normally. That might mean an increase in sales for them. As more people spend on their products, they'll spend more money in their employee's salaries, which will allow the employees to spend more, and the business cycle continues.

21 comments:

Garrett T. said...

I agree with you on that, he really isn't doing anything against the economy, he's just really messed up in the head. He's drawing all sorts of attention to himself and therefore just like you said people are gonna buy all the magazines and what not to help put money into the system.

Smith said...

Why would the studio decide now to fire him? If he is making so much money for them why would they not just tolerate it?

Andrew V said...

I could not agree more, Charlie Sheen and is outragous antics of late have been great for the econamy. If you don't believe this just ask the producers of the Today Show and Piers Morgan Tonight, thier ratings have been through the roof because of thier respective live interviews with Charlie Sheen throughout the past week. In fact even Sheen's show Two and Half Men, hasn't been hurt very bad by this, they have still maintained their ratings and were the #1 sitcom in thier timeslot this past monday evening. Just imagine the ratings they would get if Charlie Sheen were to ever return to the show.

Will Noble said...

I see your point on how celebrities outlandish actions can cause an increase in readers interest in tabloid magazines. However I would have to disagree that only one person's actions can be the sole reason for the increase and the affect on the economy wouldn't even be close to noticeable. However I would say the actions of celebrities does affect the viewer intrest in sales ad a whole and could possibly be noticeable in the economy.

Austin Miller said...

This is a very interesting thought and i could not agree more. These actions by Charlie sheen are not the only examples but all celebrity outbursts help, the tabloids. I find in very interesting that you said that these outbursts would cause harm, yet it sounds like tabloids need more of them. The thought of a show like two in a half men not being aired, yet people are watching the reruns more than ever because of this issue. This isn't a huge growth in the economy, not until all celebrities start throwing hissy fits but it is a good thought.

Alison said...

@Smith

Sheen is making them money now, but that might not always be the case. He's unpredictable and is therefore a liability. If they try to continue to film with him and he doesn't show up or makes a big mistake, they lose money. It might be better for them to find another leading actor. Loyal fans, people who have wanted a change to the show or are just curious about it may tune in to watch. That could make more money for CBS in the long term.

Alison said...

@Andrew

Absolutely. But as I said in my previous comment, Charlie Sheen's return may not be beneficial in the long run since he is such a large liability. But for now CBS is doing just fine, and like you said, any decrease in revenue they have experienced has probably been made up by their other shows' (like Entertainment Tonight) coverage of Sheen.

Logan said...

All publicity is good publicity and publicity equals lots and lots of money. The Tabloids obviously benefit but CBS is going to make a killing off of advertisements for two and a half men as soon as sheen returns to the show (which will draw monstrous ratings)but the person who stands to benefit the most economically is Sheen. People will flock to his works in movies and televisions. Advertising companies will be all over Sheen paying him millions of dollars to poke fun at his idiocy in the spirit of selling products. Sheen will make millions, too bad hes going to spend it all

Alison said...

@Will

I agree with you in that just Sheen's actions won't dramatically affect the economy. However I think the repercussions of his actions might, at least in regards to the entertainment industry. Aside from that, my article discusses another possibility:

"There's some argument over whether Sheen's problems are the result of cocaine addiction or bipolar disorder. Either way, pharmaceutical giants Bristol-Meyers Squibb (BMY) and Glaxo Smith Kline (GSK) are poised to show a little Sheen bump because they sell drugs to treat both illnesses. Imagine the business boost the drugmakers would get if the actor openly endorses any of their remedies."

Allie said...

I found it very refreshing how you drew parallels between our current economic state and actor Charlie Sheen's behavior. He is so insanely outrageous, therefore this article was interesting to read and relate. You have a very accurate point...while his personal behavior is disgraceful, he is indeed attracting a whirlwind of media attention, and could be indirectly affecting the sales of other products in magazines as well as tv commercials...etc. While Charlie Sheen alone probably could not affect the economy in a noticeable way, if more than one big celebrity begins to go off the handle, you may have a very valid point.

Alison said...

@Austin

Yes I agree with you, I think you may have misunderstood what I said in my post. I absolutely think Sheen's outbursts are beneficial for the tabloids and other industries.
Thank you for commenting!

Alison said...

@Logan

Yes, absolutely. He definitely has the most potential gain here. Even if they don't let him return to the show, I think he said on one of his interviews that he would sue CBS for a lot of money. So really, he wins either way.

Alison said...

@Allie

Yes I think it will be incredibly interesting to see how all of this plays out. And if you read the full article that I linked to in the post, it goes into a lot more detail on Sheen's possible effect on businesses.

Zach said...

This post is great! It makes me think of an earlier post I wrote about Lil' Wayne's jail time making him more money than he would have without being incarcerated. Charlie Sheen is indirectly affecting thousands of businesses. Consider Target, they now will place magazines with Charlie Sheen's face on them in the front of the store in your face and many will be compelled to purchase them. Or think about Youtube, imagine the money people would pay to put their products' advertisement on the same page as a Charlie Sheen interview, millions.

Pacman said...

All of the stunts that Charlie Sheen continues do is very benefitial to a lot of workers, so I could not agree more. Your right everyone is going to want to know a little something about this story which is where the tabloids come into play which is a great reason that this helps jobs; although its not a ton of man power to create those tabloids it is definitely worth noting the amount of workers it helps. It may not help the nations GDP as much as stated but celebrities' gosip does help plenty of jobs especially with how CBS handled everything to the point where Charlie Sheen is only helping them to make a profit which overall helps the economy for everybody.

Tanner. P

Addison said...

I completely agree that Charlie Sheen stunts are beneficial to the economy. Everyone wants to be in the loop, and since he is at the top of the celebrity gossip list, people will want to know what’s going on. This will be great for the tabloids. It won’t be a huge improvement since it doesn’t require much labor but it will still help in some employment areas. Also, everyone is interested in him now leading to watching his show Two and a Half Men, which can only bring more profit to CBS. This won’t be a huge impact but it still helps.

Alanna M. said...

I completely agree that Charlie Sheen is helping stimulate the economy. His crazy antics are helping sell tabloids and magazines. Everyone wants the latest gossip about Charlie Sheen and they are curious to see what he will do next. Besides the tabloids and magazines, clothing store are also making money through Charlie Sheen products. Stores now carry products such as t-shirts that poke fun at Charlie Sheen’s crazy behavior, and yes, people actually do buy them. Companies are able to make a huge amount of cash of Charlie Sheen’s downfall, which means they will be able to create more jobs. This will help our economy greatly. Two and A Half Men could also make more money because people want to watch Charlie Sheen. If people want to watch the show then companies who show commercials during the show will benefit greatly. CBS could also potentially make more money because the time slots for commercials during Two And A Half Men will be more expensive and high in demand. Hopefully Charlie Sheen does more crazy things so our economy can benefit even more.

Tyler said...

I agree with Alison that CBS considers Charlie Sheen a liability that they need to avoid. Right now he is drawing a lot of attention which means profits, but I think people will soon be tired of his antics and see him for just a crazy fool and lose interest. CBS needs reliable and safe. Other actors can be just as funny if the writer is good.

Teal C. said...

I agree with this thought completely. Celebrities acting inapropriately and having outbursts are very appealing to the public. I dont believe Charlie Sheen is a main reason of the help in our economy, yet it does attract attention to buyers who want to know more. I agree that people dont want to feel out of the loop and when there is a new issue they want to know more, increasing the demand of tabloids.

Bri Sharp said...

I agree that the actions of Charlie Sheen are drawing attention to people and are encouraging people to know more. It helps attract attention to certain magazines that have his stories and also shows on tv. His stories are helping the purchase of these certain magazines. I also agree that more people will be looking back to his show, Two and Half Men, since people want to see what he was like during his job. If this is true, then there will be an increase in demand for companies to put their commercials during the show. His outbursts are the center of attention right now and most people want to be in the know so they will purchase magazines that talk about him and watch shows that have him in it. This is causing more people to buy things involving him, however it is not a great influence with helping our economy. It is not a subject that is so big to help our economy. It does however have many people purchasing items involving him.
-Bri

Kate M said...

I completely agree that overall the Charlie Sheen situation has proven to be a success, at least from the standpoint of making a profit. It seems to be one of those rare win, win situations where every one gets what they want. In Charlie Sheen's case he is selling his "story" for a profit of his own, which can make up for his loss of income and help bring himself back to the spot light to continue an income after this scandal simmers down. Although the show Sheen presents to viewers is mere entertainment, it sells, and is business that is the number one priority. As for the television station that airs Two and a Half Men seems to be doing fine without producing new episodes, in the short run at least. Short term people's interests are focused on Sheen and his show because he is currently popular but because their personal interests will shift, CBS is not going to benefit from the situation in the long term. The tabloid's success will too be short lived but ultimately a profit is a profit and in the tabloid's stories tend to consistently be short term anyway. In the end this is a short-term success.

Kate M.