Editor's Digest: Where's the Money?

“Where’s the Money: US Arts and Cultural Economy by the Numbers”: Recent data from 2011 reveals an arts economy that represents 3.2 percent of the total Gross Domestic Product (ahead of travel and tourism). However, these numbers have declined since the recession of 2007-2009 and not yet recovered to pre-2006 recession heights. (Mostafa Heddaya, HyperAllergic, December 9, 2013.)

Heddaya’s graphs include an informative breakdown of the state of the arts economy and where organizations spend their money (marketing and arts education, mostly). However, his condescending conclusion that “the Phillies spend more on pro-ballplayer salaries ($173 million) than the NEA’s $154-million outlay” implies a perilous state of American arts funding, not to mention a lack of research on his part.

The opposite could not be more true. While neither private and corporate arts funding or philanthropy in general has returned to its pre-recession levels, from 2011 to 2012 arts funding overall saw an increase of 7.8-percent (see this analysis), with $14.4 billion given by individuals, corporations and foundations. Writers like Heddaya like to harp on the fact that the federal government gives little direct financial support to the arts. These authors miss the big picture: that indirect support in the form of tax write-offs for donations results in private donations that are 100 times the amount the government provides through the NEA.