Inflation

An MGM Short Subject.

In a phone conversation with Hitler five months after Pearl Harbor, a delighted Devil describes how INFLATION can win the War for the Axis as easily as bullets & bombs.

This is an imaginative little film which effectively alerted the American public to the 5 ways in which inflation could be unleashed on the economy:

••••• Impulse or overbuying ••••• Buying on the Black Market ••••• Hoarding food & supplies ••••• Breaking the price ceilings ••••• Cashing in War Bonds

Edward Arnold is at his most sardonic as The Devil; playing his role as if Lucifer were a corrupt businessman, Arnold gets to ham it up most deliciously. In her first film role, Esther Williams plays a typical young housewife who learns about the evils of inflation from an FDR radio broadcast.

After Pearl Harbor, Hollywood went to war totally against the Axis. Not only did many of the stars join up or do home front service, but the output of the Studios was largely turned to the war effort. The newsreels, of course, brought the latest war news into the neighbor theater every week. The features showcased battle stories or war related themes. Even the short subjects & cartoons were used as a quick means of spreading Allied propaganda, the boosting of morale or information dissemination. Together, Uncle Sam, the American People & Hollywood proved to be an unbeatable combination.

I'm not usually up at 05:30 but this morning [27aug2011] I am and "Inflation" came on. Took me a while to find where it is documented but once I began looking I wasn't ready to give up. Due to the star and subject matter I was sure that someone would have entered something and, sure enough, I finally found it. I started opening titles in the filmography but it just wasn't there. I was about to give up when I read the biography. Its not high art by any means but Edward Arnold is a favorite actor of mine and I'm so glad I had the chance to see this short. I thoroughly enjoyed it, a very well done short on a very timely subject. No spoilers, just a recommendation.

The Devil (a chortling Edward Arnold) und der Führer (or at least the phone-voice of der Führer) plot to use inflation to weaken 'the arsenal of democracy' by encouraging Americans to horde, cheat on rationing, cash in war-bonds, extravagantly spend on credit, and in general ignore the pleading of F.D.R. to show fiscal restraint and responsibility. Stephen McNally and an unusually dry Esther Williams are Mr. and Mrs. Smith, stand-ins for 'typical American' consumers who finally 'get it' when they hear a radio address from the President explaining the strategic necessity of financial self-control. The film's message is not subtle and after 15 minutes, becomes a bit repetitious but, as economics lessons go, the old home-front propaganda-short is imaginative and entertaining. The best parts are Satan's art-deco office, his insincere commiseration with Hitler about the large 'consignment' of German soldiers who just arrived in hell from the Russian front (and who appreciate the warmth), and his devilishly seductive assistant (Vicky Lane) with her self-lighting cigarettes and infernal hairdo. Vintage fun.

Edward Arnold plays the devil here, sitting in a big office, often conversing by phone with Hitler on how to destroy morale on the American home front. The Devil decides the best idea is to ignite inflation and get people grousing about high prices and then working at cross purposes to undermine the war effort.

There are examples shown - A young couple making more money than they ever had before due to steady work in munitions factories and going on spending sprees. A chorus dancer who has a run in her last pair of nylons tempted to go on the black market and buy what she needs. A businessman cashing in his war bonds to buy something he thinks his business really needs.

In each case the short shows how much their focus on the present could be hurting the war effort and causing inflation. I was rather surprised - FDR really did understand how economics worked and how inflation was fueled. In that he's a step above politicians today. He realized that there being more money in circulation due to war spending and less supply due to manufacturing have a war focus would mean inflation. He also understood that his price controls could be circumvented by a black market for goods. His only weapon against it was shaming the public into not turning to that black market, which is what is happening in this short.

It's all very amusing, with Arnold as the Devil laughing maniacally at the idea of American women in bidding wars over luxury items like fur coats and talking to Hitler on the phone like he's a tedious colleague, but it gets its economic message across at the same time. Recommended for students of film history.

WW2 short from MGM about the Devil (Edward Arnold) conspiring with Hitler to wreck the U.S. economy. He plans to do this by making Americans buy things on credit, ignore rationing laws, and cash in their war bonds. That Devil sure is a stinker! The point of this short was to make American at home think about how they could help the war effort by keeping the economy strong.

I love patriotic WW2 shorts like these. It avoids being too preachy and delivers its message in a clear and entertaining way. Edward Arnold is terrific. Just the year before he was fighting Satan in The Devil and Daniel Webster, now here he is playing him and doing a wickedly delightful job. It's a great short that anybody who enjoys WW2-era material should love. Also features Esther Williams in one of her earliest roles.