The Arts and The Economy

We recently wrote about Misty Copeland, the ballet, and leadership. There are so many leadership lessons that can be drawn from the performing arts. Indeed, we’ve written and spoken on that very subject many times in the past.

How else can the arts — performing arts or otherwise — impact the business world? Well, the arts and culture sector of communities can have a positive economic impact.

The arts community plays a vital role and is a strong economic driver in the State of New Mexico — where artists flock to find inspiration. In 2022 alone, arts and culture had a $740 million impact in the state — a combination of money spent by nonprofit arts and culture organizations and art audiences or consumers.

That’s just the spending in one small state. Nationwide during 2022 the industry generated $151.7 billion. (All of this data comes from Americans for the Arts, which has conducted the Arts & Economic Prosperity 6 study.)

Then think of the jobs this industry creates and supports — 2.6 million. The personal income this generates is $101 billion. Equally important is the upward of $29 billion in tax revenue. 

As we are just recovering from the effects of the actors and writers strikes in 2023 and beginning to enjoy our favorite TV shows again, we should be acutely aware of the individuals in support positions who were also financially affected. 

For example, a family friend, Dan Lawson, is the costume designer for the new CBS series Elsbeth which premiered last week. Filming of the show, along with his income, and that of many others, was postponed indefinitely during the strike. (By the way, we loved the character Elsbeth on The Good Wife. Be sure to catch an episode.) Think of the stress so many workers in supporting roles endured during these months-long strikes.

The arts not only fuels creativity and self-expression — which the world needs more of — and drives economic growth, including purchasing goods and services from local communities, but the arts bring people together in interesting ways.   

Consider tourism and encounters that tourists have with others. Once during a trip to New York City, we had a chance encounter with an individual from Philadelphia while waiting in line to purchase tickets for a Broadway show. Turns out he worked for one of our clients, and we knew many of the same people.  

Noel V. Bivens, president and CEO of Americans for the Arts said, “When we invest in nonprofit arts and culture, we strengthen our economy and build more livable communities.”