I have this pretty incredible book that involves some of the earliest 'photo manipulation'. It's called '
The Commissar Vanishes, and it's a collection of photos dated back to Stalins purges of the 1930's and 40's.
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Basically, if you were a member of the Soviet Politburo, and you were on the 'outs' with Stalin (probably headed to the Gulag or executed) your image in a photo would be erased along with any memory of you. It was the ultimate form of damage control.
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This picture below shows how the state would alter images for publication. In this case, creating a 'crowd' shot for Lenin, that appears 3 times as big as it actually was. Recently, FOX News had been caught doing
something similar in it's footage of one of the 'Tea Party' protests.