Is Hollywood Recession-Proof?

HOLLYWOOD—Earthquakes, volcano eruptions, oil spills, and in just five months into the New Year. A volcano sneezes and the whole world becomes paralyzed. It is the fallout from Iceland’s volcano that left so many people around the globe halting vacations, grounding planes and postponing medical procedures. The enormous cloud of dust high in the sky has hurt businesses, governments and travelers in a world so dependent on freedom. This did not help the economy. While millions of workers are still struggling to find a job, unemployment can drain resources and take a toll on the psyche of the unsuccessful job seeker.

Despite the long recession, is Hollywood recession-proof? Some of the top models are raking in millions of dollars, according to published reports. Brazilian model Gisele Bundchen, the 29-year-old beauty married to NFL superstar Tom Brady, is the world’s highest-paid model, taking in $25 million last year, according to Forbes.com. Coming in second place is, Heidi Klum, the 36-year-old mother of four and wife of singer Seal, and host of “Project Runway,” raking in $16 million. In third place is Kate Moss, 36, who through modeling campaigns along with her successful fashion line and fragrance raked in $9 million. In fourth place is 28-year-old Adriana Lima with a $7.5 million salary.

In this unstable economic climate, let’s not forget the richest kids on TV. The top-paid kid, according to published reports is Angus T. Jones, 16, who rakes in $250,000 per episode on the TV sitcom “Two and a Half Men.” Selena Gomez, 17, of “Wizards of Waverly Place,” makes an estimate $25,000 per episode and certainly doesn’t need to worry about paying for college. While superstar Miley Cyrus only makes a measly $15,000 per episode on “Hannah Montana,” don’t be fooled, she is believed to be worth a billion, with her concerts, CD sales, merchandising and now her blooming movie career.

Interestingly enough, once they pay their agents, managers, they have to deposit 15 percent of the salary to the Coogan account. The account, a trust fund required by the state of California, New York, Louisiana and New Mexico must be established for underage actors, which they cannot touch until they’re 21. The parent or guardian must supply the Coogan account to the employer.

The Coogan law was named for the famous child actor Jackie Coogan, who was discovered back in 1919 by Charlie Chaplin. After the death of his father, Jackie reached his 21^st birthday and realized that he was left with none of his earnings, which he worked so hard for as a child. After battling his mother for years in court, he recovered some of his earnings. At that time, the earnings of the minor child belonged solely to the parent. The laws have since changed; 10 years ago California law affirmed that earnings by minors in the entertainment industry are the property of the minor, not their parents. The minor cannot legally control their own money, so California law governs their earnings and creates a fiduciary relationship between parent and child. California law requires 15 percent of all minors’ earnings to be set in a trust account known as a Coogan Account.

Rose’s Scoop: Lady Gaga is very special. Not only did she help Greyson Chance, the 12-year-old YouTube sensation land a record deal with Interscope Records, she gave a fan two complimentary tickets to her New York concert in July, after the fan was ripped off of $300 dollars on Craigslist for two fake Lady Gaga tickets.