Arts industries in the United States made a significant contribution to the economy in 2022, generating a record $1.1 trillion and accounting for 4.3% of the nation's GDP. This data is based on the US Arts and Cultural Production Satellite Account (ACPSA), a collaboration between the National Endowment for the Arts (NEA) and the Bureau of Economic Analysis (BEA) [6fcca856]. The arts and culture sector experienced a remarkable economic resurgence, with a 13.6% increase between 2019 and 2022, surpassing the nationwide economic growth rate of 5.5% over the same period [6fcca856].
While some industries, such as performing arts organizations and non-government museums, remained below pre-pandemic valuation, overall economic activity in the arts sector increased by 4.8% from 2021 to 2022 [6fcca856]. The top industries driving this surge include web publishing and streaming, broadcasting, government services, publishing, and motion picture and video industries [6fcca856]. The report also highlights the resilience and recovery of industries such as independent artists, writers, and performers, performing arts presenters, and agents and managers [6fcca856].
Employment in the arts and culture sector has rebounded to pre-pandemic levels, with 5.2 million workers. However, some industries still struggle to return to pre-pandemic figures, with 15 of the 35 surveyed arts and cultural institutions remaining below 2019 employment levels [6fcca856]. Despite these challenges, every state in the US has seen increased economic value from arts and culture industries since 2019, with 21 states surpassing 10% growth [6fcca856].
The findings from the ACPSA report underscore the importance of arts and culture in driving economic growth and recovery. The arts sector not only generates significant revenue but also contributes to job creation and enhances the overall quality of life. The NEA plans to launch new research and data tools to provide further insights into key developments and trends in the arts and culture sector [6fcca856].
In Pennsylvania, the creative sector has experienced a significant boom, contributing over $30.1 billion to the state's gross domestic product (GDP) in 2022, marking a 6.8% increase from the previous year. Pennsylvania now ranks seventh in the nation for creative sector employment and eighth for its contribution to the state's GDP [52698d74]. The Pennsylvania Council on the Arts (PCA) plays a significant role in supporting and investing in creative industries, providing funding opportunities for jobs, community building, lifelong learning, and innovation. The PCA annually awards hundreds of grants to recipients within the creative sector. Continued investment in the creative sector is crucial for Pennsylvania's economic strategy and the state's overall competitiveness [52698d74].
The 2024 presidential election in the United States has the potential to impact the nonprofit arts sector. The nonprofit sector, which includes the arts and culture sector, accounts for almost 7 percent of jobs and 5.6 percent of GDP in the US [b838236d]. The article 'Biden or Trump and the Nonprofit Sector - Part 1, The Arts' discusses the historical relationship between presidential administrations and the National Endowment for the Arts (NEA) funding. It highlights that the NEA funding is relatively small and insignificant compared to the impact of tax laws on arts organizations. The Trump Tax Cuts and Jobs Act (TCJA) in 2017 adversely affected individual giving to arts organizations, with an estimated loss of $13 billion to $20 billion in donations. The TCJA also increased the inheritance tax deduction, which reduced charitable bequests [b838236d].
The article speculates that a Trump administration would likely continue the components of the TCJA that negatively affect the arts sector. In contrast, the Biden administration has increased the NEA budget slightly and has implemented programs to support the arts, such as the PPP program and the Save Our Stages Act [b838236d]. The article also discusses the potential impact of a Trump administration on the freedom of ideas and creativity in the arts, particularly in relation to conservative values and censorship. It suggests that a Trump administration may lead to self-censorship and the departure of American creativity from the US [b838236d].
The outcome of the 2024 presidential election will have implications for the nonprofit arts sector, including potential changes to tax laws, funding for the NEA, and the overall support for arts and culture in the country. It remains to be seen how the arts sector will be affected and how it will continue to contribute to the economy and society as a whole.