Arts add $1.2 trillion to U.S. economy, even as cuts slice deep

What you probably already know: The arts and cultural communities in our cities do more than entertain and engage residents: They drive the local economy. New data out from the National Endowment for the Arts and the U.S. Bureau of Economic Analysis show that the arts and cultural sector grew at twice the rate of the total U.S. economy between 2022 and 2023, or about $1.2 trillion. That’s 4.2% of the country’s GDP. Art exports are also a significant driver of the economy, with exports representing about $37 billion more than the value of art imports to the U.S. Despite this significant positive impact, the Trump Administration has proposed huge cuts to the National Endowment for the Arts and has even called for the elimination of the agency. Many arts organizations have already experienced the elimination of previously approved grants, many of which were set to reimburse the organizations for work that has already been done.

Why? The NEA represents a tiny sliver of the U.S.’s government spending — about 0.003% — but given the economic impact of the arts and cultural organizations that utilize these grants, it’s a massive return on that investment. Additionally, the arts community is a significant employer. There are about 2.67 million artists in the workforce in the U.S. currently, and that number jumps to 5.2 million when you consider everyone employed by the arts and cultural sector.

What it means: Artists also make a place unique. Each city has its own artistic community, which is influenced by the artists who live and work there. For Vivian Phillips, the founder of Arte Noir in Seattle’s Central District, that means embedding local artists in the community by commissioning them to do work and then allowing them to sell their work and support themselves. When a massive redevelopment happened in her traditionally Black neighborhood, she worked with the developer to hire nine Black artists to fill Midtown Square with their art, inside and out. “This building is wrapped in art that represents not only the history and legacy of our community, but it also is a place of inspiration,” Phillips said during a panel discussion at the International Women’s Forum World Leadership Conference in late May. The developer spent about $450,000 on art for that project, money that was life changing to many of the artists involved.

What happens now? As the government continues to cut support of the arts, others must step up or watch the arts community fade away. Many arts organizations, particularly those in the performing arts, have only just begun to recover from the pandemic, which decimated their traditional sources of revenue. Organizations that have their own endowments have been able to weather the storm, but for many smaller arts organizations, these latest cuts could be the final nail in the proverbial coffin. Experts suggest that if there’s a small arts organization in your community that you value, consider finding a way to support them by subscribing or donating. “I hate the phrase ‘starving artist,’” Phillips said. “I wanted to shift that paradigm and make artists feel like the work they’re doing is real work. It’s essential work and they deserve to get paid for it.”