Economic Impact: Government Subsidies in the Arts Industry

This essay delves into the contentious issue of government subsidies for the arts, exploring the multifaceted impacts of financial assistance on the art market and its stakeholders. The introduction establishes the context, defining art and the rationale behind government support. The main body provides an in-depth analysis of the benefits, including cultural promotion, economic growth, and artist support, alongside discussions of relevant laws, regulations, and the role of subsidies in fostering creativity and innovation. It differentiates between merchant and government powers, highlighting the impact of subsidies on artists' morale and the art market's expansion. The essay also addresses the various types of subsidies, the importance of government support in a growing art sector, and the role of laws and regulations. The conclusion summarizes the arguments, offering a comprehensive overview of the complex relationship between government, art, and society.

SHOULD GOVERNMENT
SUBSIDIZE THE ARTS?

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Arts is used to express emotions in the form of paintings, music, literature and dance.
Government subsidy to art is related to providing financial assistance to the art profession so that
artists are promoted towards creative activities. This essay is related to providing artist with
government subsidy in order to increase their morale to work more in this field. This study will
explain about various laws and regulation which affect the art market. Moreover, it will
introduce the types of government subsidies available for art profession. Furthermore, it will
differentiate between various merchant powers vs government power.
MAIN BODY
Government provide subsidies to art field because it reflects the culture of the country.
This assist artists towards more creativity which is beneficial for country as well. Art sector is
gaining popularity day by day which has increased government focus towards them. Art
includes paintings, sculptures, architecture, music etc. Government subsidy is a financial help
provided by government to promote particular field (Crane, Kawashima and Kawasaki, 2016).
For example, government provide financial help to art & culture which support this sector in
gaining popularity all over the regions.
Nowadays, public is more attracted towards art professions such as paintings, sculptures
etc. They like such things as art reflect various cultures being followed over different places.
Government subsidy helps in improving professionals efficiency towards creating more
innovative art. Government is providing subsidy to this sector in order to establish a good market
for paintings and sculptures and many more. This sector is providing entertainment to public by
using various ways such as music, paintings etc. ( Donovan, and Gulbrandsen, 2018). Art is also
a source of income for many people. Many people use their creativity to earn money.
Government support is necessary to involve more people in this market. It helps in
increasing knowledge about various types of art being performed by professionals. Government
assists the art market by reducing their tax liability which act as a great support to this sector. It
involves artists in doing various wall paintings on the different walls of country (Jung, Cho and
Roberts, 2015). It also provides assistance by conducting various programs where art is
promoted. This financial & non financial assistance provided to art sector by government has
helped individuals in gaining knowledge about various types of art performed in different
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countries. There are different types of art some are affordable by public and some contains high
cost which are not affordable by common people.
Art market is growing its presence all over the world. Government is establishing various
institutions, colleges etc. to promote art market (Kim and Van Ryzin, 2014). It is also funding
private institutions to promote art in the country. This sector help in increasing creativeness
among people. There are various professionals involved in different types of artistic work which
is increasing competition in this sector. There is a need to promote artists working at a small
scale which are doing best in their art but because of financial uncertainty they are not able to
work at large scale. Government subsidy will support small scale artists in promoting their art in
different places.
There are different types of laws and regulations which affect the art market (Lu, 2016).
Government made various policies in order to encourage hard working artists who are efficiently
using their art for providing knowledge about different cultures and increasing awareness among
people about different things in the form of art.
Laws and regulations are made in order to reduce financial crime happening in the art
market. Art market is regulated in order to protect public from fraudulent people performing
fraud by using art. Laws and regulations are made to stop domestic and international money
laundering. Laws in art market are made in order to protect artists works so that the art of
particular artist is not used by another (Malchiodi and Crenshaw, 2015). Laws and regulations
governs the illegal import and export of various artistic things. Regulations on art market will
increase ethical standard of the art market. Government provide subsidy to those art which are
authentic and improve the standard of living of the people.
Subsidy provided by the government to art market helps in increasing contribution of
this sector in the economy. Art market provide assistance in attracting more foreign exchange
for the country by promoting the arts such as paintings, music etc. in different countries. There
are different pricing policies being formulated by the government in order to maintain cultural
values of different arts. Government subsidy provide artists with different techniques to be used
in presenting different types of art ( Schatteman and Bingle, 2017). There is a lack of
transparencies in art market which create conflicts such as price manipulation etc. This hampers
the overall performance of the art market.
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There are various laws & regulations imposed by international government on the art
market to reduce fraud. Art helps in creating employment in the country which assist in solving
various economic problems. Arts help in providing knowledge about various challenges being
faced by rural communities ( Tevel, Katz and Brock, 2015). Art market is growing rapidly by
increasing their online presence which provide assistance in attracting more customers from
around the globe. People are visiting various exhibition to explore new art taking place in the
market. Government helps arts market by providing funding for various public museums and
concert venues in order to develop art market to have a strong economy.
Arts should be subsidised by government or not depend on various factors such as
gaining popularity of the arts in the industry, arts good for public or not and various other
factors. Arts contribute in generating revenue for the country and helps in increasing GDP of the
country. Arts define various cultural belief and values of the people.
Arts sector create various job opportunities and produce various tax revenues. It also provides
support in attracting revenue from tourists (Should Government Subsidize the Arts, 2017). Arts
helps in retaining quality work force. Art is used to stabilize the value of property. Arts helps in
preserving unique culture and heritage and different traditions for future generations.
There are different art agencies being established in order to support artist to have proper
functioning. Government subsidy helps the artists in contributing more towards economic
developments and also helps in addressing various rural problems faced by the people. Arts are
used to address various challenges being faced by the rural communities such as infrastructure
limitation , poverty etc.
There are different prices for different arts For example, Arts which are valuable and
belongs to history are of more value than those which are made out of creation. Government in
order to preserve the historical monuments should provide subsidy so that their infrastructure is
properly maintained. Along with this, museums are also developed and maintained by these
officials to conserve heritage art and culture with imparting education about their historical
background. For example, Madame Tussauds is the world famous wax museum involved in
waxwork of famous historic people and film characters.
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Illustration 1: Madame Tussauds, London
(Source: BLANKENBEHLER, 2015)
Government in order to provide subsidy should establish standards which particular art
has to qualify in order to be eligible for the grant of subsidy (Who Should Pay for the Arts,
2014). Subsidies helps in development of the performance of the artist towards the art work.
Public invest in different artistic work as they think it is an investment for future
consequences. Government provide help to this sector so that more people get in involved in
creating arts which will increase their imagination power. Arts provide assistance in increasing
education level of the students by using different art forms.
Artists use different types of power in arts which helps them in attracting customers
towards them. Traders of art have a great influence on the mind of public which help them in
selling the art. Artist by using innovative ideas create new art which helps in increasing the
revenue for them.
Government in order to discourage art which is used to offend religious and political
beliefs uses its power to restrict those form of art. Government has a power to reject the license
of art in order to reduce fraud happening in the name of artistic work. Government has a power
to restrict import and export of various cultural arts. There are different types of artistic things
which are highly valuable and reflect the cultural background of the country should be promoted
Government provided subsidy are used for various fraudulent activities which are the
main reason for which government does not provide subsidy to this sector. Artist in order to
boost the market of arts mislead the government by using arts of the another artist in order to
gain subsidy by the government (Alexander, 2018). Art business is gaining popularity all over
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the regions which has increased government interference in the matter of various artistic things.
Public money utilised by the government should be beneficial for the public as well as country's
growth. Many Arts are not so popular and even does not contain much value of the creativity
should not be subsidised. Arts sector is gaining more popularity because young generation is
attracting more towards artistic work. There are various laws and regulations imposed by the
government on various arts which are beneficial for the growth of country. Government provide
subsidy in order to attract more revenue from this sector. Arts is used for various issues relating
to social, political and economical aspects. Government subsidy helps the Artists in reducing the
cost of their art so that artists are benefited. Government uses taxpayers money in order to grant
subsidy to the arts market.
Price of various artistic work depend on factors such as cost incurred in making the
art ,creativeness, etc. Price plays a major in role in increasing the demand of the particular art
work. Subsidy provided by government will help them in reducing the cost and increasing the
creativity. Price of the art is very important because it contains the hard work of the artist in
creating the art. Government subsidy will provide assistance to arts in the inflationary conditions.
Arts contains various religious beliefs of the people as well as society.
Government should subsidized those art which contribute to the economy and have its
positive impact on the society. Arts provide assistance in changing the mind set of the people
towards different tradition and culture. Government by providing subsidies to the art market will
help the artist in changing the world for the good cause. Subsidies are granted to increase the
market share of arts business for the future benefits of the country. Artists make different form of
art which provide learning to the people. It also helps in gaining understanding of different
religions, thoughts, beliefs etc. of different persons.
Government plays a major role in the development of arts market because without
government support arts will not be able to explore ( Belardi, 2014). Government supports the art
market in exploring the global market by building connection with different countries. There are
various rules & regulations which are imposed by government on all the sectors operating in the
countries. Government has provided relief to creative industry to some extent in order to
encourage them to explore the different markets.
Merchants dealing in arts explore different market in order to find the competition. They
also travel to different places to increase their knowledge about different traditions & culture so
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that they can create something innovative. Arts is also used for highlighting different political
issues which create confusion and war. For example, Paintings on inhumanity etc. will create
political instability and will affect the public at large. Government uses power to maintain peace
in order to have political stability the country (Chang and Wyszomirski, 2015). Government has
the power to restrict those types of arts which create confusion among public. Government
should subsidize those arts which provide knowledge about cultures & tradition and should not
subsidize those arts which create confusion and war among people.
CONCLUSION
From the above essay, it has been concluded that Arts played a major role in development
of country. This assignment has provided knowledge about the government subsidies. It has also
described about various laws and regulations which affected the art market. Furthermore, this
essay has explained about the dealers dealing in arts and their power in the art market. This topic
has concluded about effects of arts on the society culture and traditions and has also provided
with various powers of government affecting the art market. Moreover, it has explained about the
benefits of government subsidies on arts markets.
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REFERENCES
Books and Journals
Alexander, V.D., 2018. Heteronomy in the arts field: state funding and B ritish arts
organizations. The British journal of sociology. 69(1). pp. 23-43.
Belardi, L., 2014. Arts and culture. Australian Ageing Agenda, (Sep/Oct 2014). pp. 62.
Chang, W.J. and Wyszomirski, M., 2015. What is arts entrepreneurship? Tracking the
development of its definition in scholarly journals. Artivate: a journal of
entrepreneurship in the arts. 4(2). pp. 11-31.
Crane, D., Kawashima, N. and Kawasaki, K.I. eds., 2016. Global culture: Media, arts, policy,
and globalization. Routledge.
Donovan, C. and Gulbrandsen, M., 2018. Introduction: Measuring the impact of arts and
humanities research in Europe. Research Evaluation.
Jung, S., Cho, S.H. and Roberts, R.K., 2015. The impact of government funding of poverty
reduction programmes. Papers in Regional Science. 94(3). pp. 653-675.
Kim, M. and Van Ryzin, G.G., 2014. Impact of government funding on donations to arts
organizations: A survey experiment. Nonprofit and Voluntary Sector Quarterly. 43(5).
pp. 910-925.
Lu, J., 2016. The Philanthropic Consequence of Government Grants to Nonprofit Organizations:
A Meta‐Analysis. Nonprofit Management and Leadership. 26(4). pp. 381-400.
Malchiodi, C.A. and Crenshaw, D.A. eds., 2015. Creative arts and play therapy for attachment
problems. Guilford Publications.
Schatteman, A.M. and Bingle, B., 2017. Government Funding of Arts Organizations: Impact and
Implications. The Journal of Arts Management, Law, and Society. 47(1). pp. 34-46.
Tevel, E., Katz, H. and Brock, D.M., 2015. Nonprofit financial vulnerability: Testing competing
models, recommended improvements, and implications. Voluntas: International
Journal of Voluntary and Nonprofit Organizations. 26(6). pp. 2500-2516.
Online
Should Government Subsidize the Arts. 2017. [ONLINE]. Available through
:<http://www.nealhardin.com/should-government-subsidize-the-arts/>
Who Should Pay for the Arts. 2014 [ONLINE]. Available through :<https://www.city-
journal.org/html/who-should-pay-arts-11318.html>
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BLANKENBEHLER, B., 2015. Madame Tussauds, London. [Online]. Available through:<
https://www.architecturerevived.com/madame-tussauds-london/>
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