{"id":2069,"date":"2016-07-26T06:32:54","date_gmt":"2016-07-26T13:32:54","guid":{"rendered":"http:\/\/www.artsjournal.com\/worth\/?p=2069"},"modified":"2016-07-26T06:32:54","modified_gmt":"2016-07-26T13:32:54","slug":"the-size-of-the-arts-sector-is-not-a-rationale-for-public-funding-of-the-arts-sector","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/worth\/2016\/07\/the-size-of-the-arts-sector-is-not-a-rationale-for-public-funding-of-the-arts-sector\/","title":{"rendered":"The size of the arts sector is not a rationale for public funding of the arts sector"},"content":{"rendered":"

\"???\"<\/a>In yesterday’s post<\/a>, I wrote (as an aside):<\/p>\n

I see a lot of advocacy that follows the ‘1.\u00a0the cultural sector is bigger than you thought it was, 2.\u00a0???, 3.\u00a0deserves more public funding’\u00a0model.<\/p>\n

Conveniently, this morning we get this story<\/a>\u00a0from The Scotsman<\/em> on the Edinburgh Festival:<\/p>\n

Flagship events like the Edinburgh International Festival, the Fringe, the Tattoo and the Hogmanay festivities are now attracting a record 4.5 million people each year \u2013 up by more than 250,000 in that period.<\/p>\n

They are also now supporting 6,021 jobs \u2013 up by 26 per cent \u2013 according to findings released ahead of next month\u2019s 70th annual season.<\/p>\n

Major factors behind the growth in the value of the festivals include the impact of new spectator stands used for the Tattoo, Fringe ticket sales soaring 17 per cent over the last five years, and the EIF\u2019s box office income soaring to a record \u00a33.8m.<\/p>\n

The research found 43 per cent of those surveyed said the festivals were their sole reason behind a visit to Scotland, with 92 per cent describing the city\u2019s events as \u201cmust-see\u201d.<\/p>\n

Festivals Edinburgh, the organisation which commissioned the research, said the findings would be used to bolster the case to maintain funding for the city\u2019s main events in the event of a predicted \u201cfiscal cliff\u201d in the next few years.<\/p><\/blockquote>\n

There can be a lot of good reasons to provide public funding, even increased public funding, to the Edinburgh Festival: its importance in presenting and inspiring new works, or its importance to the quality of people’s lives in Scotland. I have enjoyed attending the festival, and I think it would be straightforward to make a case for public support.<\/p>\n

But the number of jobs<\/em> attributed to the festival, or growth in that number, are not in themselves<\/em> reasons for public funding. All sectors in the economy, if they are a sector at all, employ people. Not<\/em> all sectors warrant public subsidy, which is only called for in the case where there are benefits to society beyond<\/em> the activity as measured in the market. That’s what economists mean when they use the term ‘externality’: there are additional<\/em> benefits external<\/em> to what is captured in market prices.<\/p>\n

It is not the role of public funding of the arts to create jobs in that sector, or to bolster business in the hotel and restaurant sector. We can create new employment in any<\/em> sector by offering it subsidies (which subsequently cause declines in employment in the non-subsidized sector), and so there is no special case for public funding of the arts in that respect. Indeed, it’s a bad reason to subsidize any sector. The case for public funding of the arts rests upon the art, and the enjoyment people gain from that art as art. That’s where you make the case.<\/p>\n","protected":false},"excerpt":{"rendered":"

In yesterday’s post, I wrote (as an aside): I see a lot of advocacy that follows the ‘1.\u00a0the cultural sector is bigger than you thought it was, 2.\u00a0???, 3.\u00a0deserves more public funding’\u00a0model. Conveniently, this morning we get this story\u00a0from The Scotsman on the Edinburgh Festival: Flagship events like the Edinburgh International Festival, the Fringe, the […]<\/p>\n","protected":false},"author":3,"featured_media":2070,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26],"tags":[],"class_list":{"0":"post-2069","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-issues","8":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/07\/gnome.jpeg","jetpack_shortlink":"https:\/\/wp.me\/p3dIW5-xn","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1499,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/09\/local-arts-funding-and-urban-design-responses\/","url_meta":{"origin":2069,"position":0},"title":"Local arts funding and urban design: responses","author":"Michael Rushton","date":"September 8, 2014","format":false,"excerpt":"My thanks to those who took the time to comment on my most recent post. As usual - and this is for the good! - discussion went in unexpected directions. One commenter wrote, in response to my line that local government arts funders should respond to local tastes: Should \u201ctaste\u201d\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"we get letters","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/03\/postbox.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/03\/postbox.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/03\/postbox.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/03\/postbox.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/03\/postbox.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/03\/postbox.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":3824,"url":"https:\/\/www.artsjournal.com\/worth\/2025\/07\/the-search-for-the-very-nice-arts-philanthropist\/","url_meta":{"origin":2069,"position":1},"title":"The search for the very nice arts philanthropist","author":"Michael Rushton","date":"July 18, 2025","format":false,"excerpt":"Last month, the Scottish government came up with a\u00a0one-time grant of \u00a3300,000\u00a0to cover the Edinburgh International Book Festival, after pressure from environmental protestors caused the previous sponsor, Baillie Gifford, to back out. This week in Canada, its premier book award, the Giller Prize, having lost its primary sponsor, Scotiabank, after\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/07\/image-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/07\/image-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/07\/image-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/07\/image-1.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":2234,"url":"https:\/\/www.artsjournal.com\/worth\/2017\/11\/about-that-arts-council-england-economic-report\/","url_meta":{"origin":2069,"position":2},"title":"About that Arts Council England economic report","author":"Michael Rushton","date":"November 7, 2017","format":false,"excerpt":"I've been away from the blog for a while, but I just can't keep myself away from economic impact studies of the arts. The latest is from Arts Council England - you can read the report here. Three things: First, the goals of the study are not clear. Britain's Office\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"now multiply by 2.77 precisely","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2017\/11\/abacus.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2017\/11\/abacus.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2017\/11\/abacus.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":1885,"url":"https:\/\/www.artsjournal.com\/worth\/2015\/04\/are-nonprofit-arts-organizations-special\/","url_meta":{"origin":2069,"position":3},"title":"Are nonprofit arts organizations special?","author":"Michael Rushton","date":"April 16, 2015","format":false,"excerpt":"April 16, 2015 marked the opening session of a conference held at the School of Public and Environmental Affairs at Indiana University Bloomington, on Advancing the Field(s) of Nonprofit Management: New Structures, New Solutions. I was asked to speak about the arts, specifically about relationships between nonprofit arts organizations and\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"Blood alone moves the wheels of history!","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2015\/04\/my-speech.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":2864,"url":"https:\/\/www.artsjournal.com\/worth\/2023\/03\/new-rushton-working-paper-on-equality-and-public-funding-for-the-arts\/","url_meta":{"origin":2069,"position":4},"title":"New Rushton Working Paper on Equality and Public Funding for the Arts","author":"Michael Rushton","date":"March 26, 2023","format":false,"excerpt":"A short, low-tech paper available for free download here on SSRN. The abstract: Suppose a reasonably wealthy country did not have an arts council that granted public funds to select artists and arts organizations. Would it be advisable to create one? One reason to do so, which comes from economic\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/03\/Rushton-headshot.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1838,"url":"https:\/\/www.artsjournal.com\/worth\/2015\/03\/on-the-return-to-public-investments-in-museums\/","url_meta":{"origin":2069,"position":5},"title":"On the return to public investments in museums","author":"Michael Rushton","date":"March 3, 2015","format":false,"excerpt":"Arts Council England has released a new report that seeks to quantify the 'economic impact' of museums. It estimates that to be\u00a0\u00a31.45 billion. That doesn't matter much - there are no insights to be gained, no policy implications, from the estimate's being \u00a31.45 billion or \u00a32.07 billion or \u00a31.03 billion.\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"maybe this time?","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/03\/sisyphus.jpeg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/2069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/comments?post=2069"}],"version-history":[{"count":5,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/2069\/revisions"}],"predecessor-version":[{"id":2077,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/2069\/revisions\/2077"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media\/2070"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media?parent=2069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/categories?post=2069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/tags?post=2069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}