The financial benefit of arts and cultural institutions

The American Association of Museums' (AAM) Washington Newswire is a great way to keep up with current museum issues. A recent issue discussed the House Education and Labor Committee hearing held March 26, 2009, on the impact of the economic downturn on the arts and music industries. Committee Chairman George Miller (D-CA) had some inspiring (and concrete!) remarks on the financial benefit to the U.S. economy of these institutions, which are archived here as a pdf. Miller said:

The non-profit arts and culture industries inject over $166 billion into our economy each year, according to a recent study by the Americans for the Arts. These sectors support 5.7 million jobs and over $104 billion in household income.

In many places, like my home state of California, for example, the arts and music industries are vital engines for local economies – making up a large share of revenue and providing many employment opportunities.

Spending by nonprofit arts and culture organizations provide work for more than just artists, curators, and musicians - they also directly support builders, plumbers, accountants, printers, and an array of other occupations.

Workers in these fields are bearing a disproportionate brunt of this economic tsunami. According to research conducted by the National Endowment for the Arts, unemployment in the arts rose at a higher rate than the overall workforce in 2008.

In fact, the unemployment rate for artists is double that of other professional workers. In the last quarter of 2008, the unemployment rate for artists grew by 64 percent – for a total of 129,000 displaced workers.

. . .

Without the contributions and influence of the arts, our economy suffers greatly. Families suffer from layoffs, lost income and purchasing power.

When we talk about arts and music, we’re not just talking about artists and musicians. We’re also talking about museums and galleries, symphonies and orchestras, community theatres and other non profits that shape our neighborhoods, towns and cities.

This industry helps attract audiences, spurs local business development and stimulates
learning in classrooms. Research shows that when students are exposed to arts and music, they perform better in other subjects.