The arts and culture industry makes a major contribution to the US economy

According to a recent report on Bloomberg, the contribution of arts and culture to the US economy is greater than the economic output of Sweden or Switzerland.
The familiar maxim often mentioned is “Art feeds the soul”. However, culture and arts also directly promote economic development. The arts industry contributes more than $800 billion each year to US economic output, accounting for more than 4% of GDP.

This is based on detailed data from the Bureau of Economic Analysis and the National Endowment for the Arts in a report published in 2019. The report tracks overall performance in 35 major arts and culture sectors. , including broadcasting, film, streaming, publishing, performing arts, arts-related retail…

The contribution of the arts to the US economy is equivalent to half the GDP growth in Canada and greater than the economic output of Sweden or Switzerland. Indeed, the arts contribute more to America’s GDP than industries such as construction, transportation, and agriculture. And America’s cultural sector has grown much faster than other sectors in the economy. During the three-year period spanning 2014 to 2016, the arts sector’s average annual growth rate was 4.2%, compared with 2.2% growth for the economy as a whole. America. The arts and culture industry thrives thanks to art exports.

In 2016, the United States ran a trade surplus of $25 billion in arts and cultural goods and services thanks to exports of movies, television shows, and video games. The figure increased tenfold from a decade earlier; the trade surplus in the arts was only $2 billion in 2006. More than 5 million Americans work in the arts and culture economy. After a slide during the Great Recession, employment in this sector has rebounded even stronger with an increase of more than 200,000 new jobs between 2009 and 2016. In 2016, The job market in the arts and culture sector has generated about $400 billion in wages. In addition, consumer spending on the arts has also increased in both real terms and as a percentage of total consumer spending over the past few decades.

According to the report, art is not only a form of intellectual enjoyment or spiritual enrichment, but also an important source of investment for today’s economy. Historically, economic investment was defined in terms of “physical capital”, that is, tangible things such as plants and equipment. In recent years, the US Bureau of Economic Analysis has expanded its definition and assessment of art as intangible assets. The Bureau of Economic Analysis has also added investment in arts and cultural goods as “entertainment,” which includes movies, television shows, music and photography… Investment in entertainment has increased by more than 10%. % annually from 2014 to 2016.

The arts and culture economy is concentrated in states such as New York and California as well as the major cities of New York and Los Angeles along with Nashville and several other states. The report shows that the arts and culture economy has grown rapidly in the states. Topping the list are Washington, Utah and Nevada, all of which grew faster in this field than California between 2014 and 2016. In addition, arts education programs also contributed into the development of leading cultural and artistic industries.

Art makes a “huge” contribution to the US economy

In fact, according to the report, arts and culture contribute half of the creative economy. Research also shows that arts and culture is one of three key sectors, along with science and technology and business management, that promote regional economic development. Today’s economy is not just based on knowledge or technology, but is also a broadly creative economy, in which arts and culture play an important role.

From 2019 to 2020, the value added by web publishing and streaming increased by 14.3%. The arts and culture sector has added 12,000 jobs in two years. The U.S. government’s contributions to arts and culture remained fairly stable from 2019 to 2020. The government continued to invest heavily in arts education in public schools; museums and nature parks; and federal, state and local arts funding.

The latest data in May 2020 also recorded the positive impacts of the culture and arts industry on people during the Covid-19 pandemic. These data also assess the national and state-level contributions of the arts and cultural sector to the nation’s gross domestic product (GDP) in 2020, the first year of the pandemic.

“While many other industries have suffered heavy losses from the Covid-19 pandemic, America’s arts and cultural industries continue to play an important role in the economy,” said the US National Endowment for the Arts ( NEA) said.

In 2020, the American arts and culture sector contributed an additional 876.7 billion USD, equivalent to 4.2%, to national GDP growth./.