{"id":3768,"date":"2025-04-11T09:15:33","date_gmt":"2025-04-11T16:15:33","guid":{"rendered":"https:\/\/www.artsjournal.com\/worth\/?p=3768"},"modified":"2025-04-11T09:15:34","modified_gmt":"2025-04-11T16:15:34","slug":"what-do-to-with-the-nea-pull-the-plug","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/worth\/2025\/04\/what-do-to-with-the-nea-pull-the-plug\/","title":{"rendered":"What do to with the NEA? Pull the plug?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/04\/image.png\"><img loading=\"lazy\" decoding=\"async\" width=\"256\" height=\"389\" src=\"https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/04\/image.png\" alt=\"\" class=\"wp-image-3770\" srcset=\"https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/04\/image.png 256w, https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/04\/image-197x300.png 197w\" sizes=\"auto, (max-width: 256px) 100vw, 256px\" \/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Two opinion pieces were published this week giving different conservative takes on what to do with the NEA. I\u2019ll talk about Mark Bauerlein\u2019s&nbsp;<em>New York Times<\/em>&nbsp;Op-Ed in the next post; here I look at the Cato Institute\u2019s Ryan Bourne\u2019s briefing paper \u201c<a href=\"https:\/\/www.cato.org\/briefing-paper\/end-national-endowment-arts\">End the National Endowment for the Arts<\/a>\u201d.<\/p>\n\n\n\n<p>To begin I\u2019ll skip all the way to his last paragraph, which begins:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>There is no robust economic case for direct taxpayer funding of art.<\/p>\n<\/blockquote>\n\n\n\n<p>And, as I wrote in chapter two of&nbsp;<a href=\"https:\/\/link.springer.com\/book\/10.1007\/978-3-031-35106-8\">my book on arts funding<\/a>&nbsp;(an ungated working paper version of the chapter&nbsp;<a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=4126290\">is here<\/a>), it\u2019s hard to disagree. That doesn\u2019t mean there is&nbsp;<em>no<\/em>&nbsp;case for public funding; it just means that economic analysis isn\u2019t where you are going to find it.<\/p>\n\n\n\n<p>In general, the mainstream economics approach &#8211; what you might call \u201cneoliberal\u201d &#8211; to questions of public subsidies for anything starts from the premise that markets on their own are&nbsp;<em>mostly<\/em>&nbsp;pretty good at directing our labor and investments and consumption to their most valued uses, but sometimes they are not, and so regulations and taxes to discourage those goods and services that are overproduced, and subsidies to encourage those goods and services that are unproduced, can be a useful, if still imperfect, nudge in the right direction. Claims have been made, by academics and by people working in the arts sector, that the arts are one of those places where markets on their own fail to do enough, and so subsidies are called for.<\/p>\n\n\n\n<p>But here\u2019s the hard part: economics as a method is one that takes consumer tastes as&nbsp;<em>given<\/em>: there is no judgement over whether people have good or bad taste, and as such there is no&nbsp;<em>economic<\/em>&nbsp;argument for saying that policies should try to change people\u2019s tastes. Policy can&nbsp;<em>inform<\/em>&nbsp;people &#8211; \u201chere are some things you might not have heard of\u201d (it is not paternalistic government policy to put a sign on a hiking trail that says \u201cwatch out, there\u2019s a really steep cliff right beside you\u201d) &#8211; but there is no economic argument for telling people that they would live a better life if they listened to this music instead of that, or that they should listen to more music at all.<\/p>\n\n\n\n<p>What does Bourne, who (like me) is an economist, say?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cGreat art doesn\u2019t need subsidies\u201d. The NEA doesn\u2019t fund individual artists (except writers) anyway, and we have a rich enough economy that musicians, filmmakers, live theatre and visual arts can and do create great things without subsidy.<\/li>\n\n\n\n<li>\u201cArt has never been more accessible\u201d. True. Americans can access all manner of art at really low cost. The \u201cbarrier\u201d to people reading good books or listening to recordings of great music or watching interesting films is not price or access, it is lack of interest. For live arts, if you live driving distance from a college campus you\u2019ll find all sorts of offerings there with either free admission or just a few dollars for a ticket.<\/li>\n\n\n\n<li>\u201cArt is not a public good\u201d. Economists define a \u201cpublic good\u201d in a very particular way &#8211; it is both non-rival (an extra person using it doesn\u2019t impose any costs on anyone) and non-exclusive (once provided, it is hard to keep anybody out, and, in turn, from collecting an entrance fee). The small park near my house where I walk my dog is a public good &#8211; there is always room for more people to walk their dogs, and it would be very impractical to set up fences and ticket booths around it. Markets won\u2019t provide such goods, since there is no way to collect revenue, but they are collectively valued by the public at an amount more than it costs, so it makes sense for city governments to give people green spaces like this. But art\u00a0<em>is<\/em>\u00a0exclusive (and, for small venues, rival as well). Museums and performance spaces can and do collect entrance fees from visitors. There are a few exceptions, but we don\u2019t need an NEA to fund the uplifting mural on the side of your local parking garage &#8211; your city council can handle it.<\/li>\n\n\n\n<li>\u201cArt is not obviously a merit good\u201d. Bourne is slightly conflating two ideas here &#8211; \u201cmerit goods\u201d are ones where we doubt whether people make good choices regarding their consumption (\u201ceat your Haydn, it\u2019s good for you\u201d), and \u201cpositive externalities\u201d, which (as I elegantly illustrate in my drawing above), involve benefits from the consumption of any good that go beyond the individual consumer, to broader society (\u201cyou didn\u2019t attend our performance of Haydn\u2019s Nelson Mass, but you benefit from the fact that other people did\u201d). Economists dismiss merit goods as paternalistic. They take externalities more seriously as a market failure, but \u2026 (1) the supposed externalities from the arts are pretty vague, and rely on quite a bit of hand-waving argument, and (2) because we don\u2019t question tastes, it means that externalities only exist if people\u00a0<em>think<\/em>\u00a0they do. In other words, it would require people agreeing to the proposition \u201cI am glad you went to the Haydn performance; I didn\u2019t go, it\u2019s not my jam, but I benefit from your having gone, to the point that I would welcome higher taxes on me to fund such performances.\u201d But you can\u2019t just assume people think that.<\/li>\n\n\n\n<li>\u201cArt subsidies don\u2019t produce huge economic multipliers.\u201d\u00a0<a href=\"https:\/\/www.artsjournal.com\/worth\/2016\/11\/why-its-time-to-completely-totally-finally-give-up-on-economic-impact-studies-in-the-arts\/\">No kidding<\/a>.\u00a0<a href=\"https:\/\/www.artsjournal.com\/worth\/2017\/11\/about-that-arts-council-england-economic-report\/\">We all<\/a>\u00a0<a href=\"https:\/\/www.artsjournal.com\/worth\/2020\/11\/economic-impact-a-quick-and-dirty-critique\/\">agree on this by now<\/a>,\u00a0<a href=\"https:\/\/www.artsjournal.com\/worth\/2023\/03\/does-arts-share-of-gdp-matter\/\">right<\/a>?<\/li>\n\n\n\n<li>\u201cArts subsidies crowd out private activity\u201d. The idea here is that donors cut back on donations if they think the public sector is covering it. Research on this is mixed &#8211; as the NEA begins to restrict some grants on the basis of anti-DEI hysteria, it will be an interesting natural experiment to see the degree to which private charity steps up to fill gaps (of course there will be anecdotes of positive cases, but I wonder about the country as a whole).<\/li>\n\n\n\n<li>\u201cArts subsidies are industrial policy\u201d. That\u2019s an odd phrase to use, but he clarifies \u201cA reliance on government grant panels can foster conformity and mediocrity. Arts organizations are incentivized to tailor their proposals to fit whatever is likeliest to win NEA approval, rather than pursuing original ideas or controversial performances.\u201d I don\u2019t doubt this is true, though I\u2019d say it applies to grant applications for large charitable foundation funding as well.<\/li>\n\n\n\n<li>\u201cArt subsidies politicize art.\u201d In the same vein &#8211; presidential administrations will not be able to resist directing funding away from programs they don\u2019t like in favour of ones they do (I\u2019ll be returning to this when I take on Bauerlein\u2019s op-ed). Trump has not chosen to end the NEA (I thought he would, tbh), but instead wants it to fund patriotic (in his definition of the term) art. I am old-school enough to think that a public arts council should focus on the excellence of the art itself instead of favoring political priorities of the left or right, but Bourne is not wrong that a public arts council can be at the mercy of an interventionist executive.<\/li>\n\n\n\n<li>\u201cIt\u2019s immoral to force individuals to fund art.\u201d Bourne is vague here, going to back to the cultural wars issues the NEA faced back in days of yore. But then he concludes more simply: \u201cAny government selection of art is likely to please some and anger others. The simplest resolution is for the government to exit the role of arts patron, leaving funding decisions to the pluralism of the private sphere, where no single viewpoint has coercive power over others\u2019 money.\u201d If I could tighten his argument from an economic perspective: it is always more difficult to fund public goods or subsidize positive externalities where people\u2019s preferences over these goods varies widely than when people are more or less agreed. We don\u2019t have vigorous debates at our city council meetings over whether the city should provide sidewalks, because there is general agreement, even in a town full of academics who never agree on anything, that sidewalks are a good thing. When preferences vary, you get a greater number of people saying \u201cI don\u2019t want my taxes paying for this.\u201d Now, you can\u2019t win them all &#8211; there are all sorts of things our governments spend money on that I wish they wouldn\u2019t, but we recognize in a democratic republic that this is going to be a fact of life. But with arts grants, the disagreements are going to be a lot bigger than they are for sidewalks.<\/li>\n\n\n\n<li>\u201cNEA funding is not an effective redistributive tool.\u201d I agree, and\u00a0<a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=4398308\">said so here<\/a>, whilst at the same time saying that this did not matter very much &#8211; the goal of arts funding should not be to try to alleviate the problems faced by the poor, we have much better policy instruments for that.<\/li>\n<\/ul>\n\n\n\n<p>And so he concludes. As I say at the start: one can haggle over some of the details of the piece, but for the most part he isn\u2019t wrong &#8211; the&nbsp;<em>economic<\/em>&nbsp;case for public funding of the arts is weak. The strongest case for public funding involves trying to go against the grain of the immediately popular and entertaining, which is available in more abundance than could possibly have been imagined in 1965 when the NEA came into being. But if our working model is&nbsp;<em>de gustibus non est disputandum<\/em>, there is not much can be done.<\/p>\n\n\n\n<p>Cross-posted from <a href=\"https:\/\/michaelrushton.substack.com\/\">https:\/\/michaelrushton.substack.com\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two opinion pieces were published this week giving different conservative takes on what to do with the NEA. I\u2019ll talk about Mark Bauerlein\u2019s&nbsp;New York Times&nbsp;Op-Ed in the next post; here I look at the Cato Institute\u2019s Ryan Bourne\u2019s briefing paper \u201cEnd the National Endowment for the Arts\u201d. To begin I\u2019ll skip all the way to [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":3770,"comment_status":"open","ping_status":"closed","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-3768","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\/2025\/04\/image.png","jetpack_shortlink":"https:\/\/wp.me\/p3dIW5-YM","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1025,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/02\/nea-funding-and-the-ecological-fallacy\/","url_meta":{"origin":3768,"position":0},"title":"NEA funding and the ecological fallacy","author":"Michael Rushton","date":"February 4, 2014","format":false,"excerpt":"The SMU study has a serious problem","rel":"","context":"In &quot;issues&quot;","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"rich town poor town doesn't matter","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/02\/openingnight.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":2154,"url":"https:\/\/www.artsjournal.com\/worth\/2016\/12\/what-to-do-about-the-nea\/","url_meta":{"origin":3768,"position":1},"title":"What to do about the NEA","author":"Michael Rushton","date":"December 6, 2016","format":false,"excerpt":"At Bloomberg, Tyler Cowen posts some recommendations on US federal government arts policy. He has written at length about this in his book Good and Plenty; here he gives some ideas for the new administration. The thing I always enjoy about Cowen - especially in his blog - is his\u2026","rel":"","context":"In &quot;issues&quot;","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"let's give some support?","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/12\/Sculpture_Studio_Classroom.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/12\/Sculpture_Studio_Classroom.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/12\/Sculpture_Studio_Classroom.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/12\/Sculpture_Studio_Classroom.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":3641,"url":"https:\/\/www.artsjournal.com\/worth\/2024\/11\/the-fate-of-the-nea-in-the-coming-administration\/","url_meta":{"origin":3768,"position":2},"title":"The fate of the NEA in the coming administration","author":"Michael Rushton","date":"November 22, 2024","format":false,"excerpt":"On NPR this morning is a short piece pondering the fates of the NEA and NEH under the second Trump administration. It is optimistic, though given the Wall Street Journal article by Musk and Ramaswamy this morning (they obviously didn't write it - but it carries their names), which, in\u2026","rel":"","context":"In &quot;issues&quot;","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\/2024\/11\/image.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1966,"url":"https:\/\/www.artsjournal.com\/worth\/2016\/02\/local-state-federal-public-funding-for-the-arts-in-the-u-s\/","url_meta":{"origin":3768,"position":3},"title":"Local, state, federal: public funding for the arts in the U.S.","author":"Michael Rushton","date":"February 1, 2016","format":false,"excerpt":"At the Atlantic, Andy Horwitz asks 'Who should pay for the arts in America?' He is specifically asking about nonprofit arts, whose funding comes from paying customers, donors and other sponsors, and the public sector. He observes: The current state of the arts in this country is a microcosm of\u2026","rel":"","context":"In &quot;issues&quot;","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"this land is your land","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/01\/america_map.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/01\/america_map.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/01\/america_map.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":4599,"url":"https:\/\/www.artsjournal.com\/worth\/2025\/09\/public-funding-for-the-arts-and-viewpoint-discrimination-at-the-nea\/","url_meta":{"origin":3768,"position":4},"title":"Public Funding for the Arts and Viewpoint Discrimination at the NEA","author":"Michael Rushton","date":"September 22, 2025","format":false,"excerpt":"The\u00a0ACLU is pleased to announce\u00a0that they succeeded in court against the new National Endowment for the Arts provision prohibiting funding for organizations or projects promoting \u201cgender ideology\u201d. The case is\u00a0Rhode Island Latino Arts v. National Endowment for the Arts. Here is an excerpt from the ACLU report: In an important\u2026","rel":"","context":"In &quot;issues&quot;","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\/09\/image-2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/09\/image-2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2025\/09\/image-2.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":684,"url":"https:\/\/www.artsjournal.com\/worth\/2013\/04\/creative-communities\/","url_meta":{"origin":3768,"position":5},"title":"Creative Communities","author":"Michael Rushton","date":"April 19, 2013","format":false,"excerpt":"I'm happy to report that Creative Communities: Art Works in Economic Development has been released by Brookings Institution Press. Some background: In 2011, discussions with the Research and Analysis branch of the National Endowment for the Arts led to the idea for a symposium on \"The Arts, New Growth Theory,\u2026","rel":"","context":"In &quot;issues&quot;","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"creativecommunities_2x3","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/04\/creativecommunities_2x3.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/3768","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=3768"}],"version-history":[{"count":2,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/3768\/revisions"}],"predecessor-version":[{"id":3771,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/3768\/revisions\/3771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media\/3770"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media?parent=3768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/categories?post=3768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/tags?post=3768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}