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Why Government Should Invest in the Arts

The arts are an important community builder and prosperity generator warranting investment from the public sector. Here, we explore the groups who support government investment in the arts as well as their benefits for both society and public policy.

Supporters of Government Investment in the Arts

Leading public sector organizations have identified the arts as part of a strong state policy portfolio. These include the National Governors Association, the National Conference of State Legislatures, the U.S. Conference of Mayors and the Education Commission of the States.

American taxpayers concur, with 55% supporting increasing federal investment in the arts, 57% supporting state government funding for the arts and 58% supporting local government funding for the arts ¹.

Business leaders, economists, property developers, tourism officials and community planners have joined with parents, educators and civic leaders to promote public policies that strengthen the arts. They do so because they recognize the benefits that accrue to communities when government helps to foster a robust arts sector.

Benefits for Society

Economic Drivers: The arts create jobs and produce tax revenue. A strong arts sector is an economic asset that stimulates business activity, attracts tourism and expands a state’s work force and tax base. The arts have been shown to be a successful and sustainable strategy for revitalizing rural areas, cities and populations struggling with poverty.

Educational Assets: The arts cultivate young imaginations and facilitate success in school, enhancing academic achievement in multiple subject areas. They provide the critical thinking, communications and innovation skills essential to a productive 21st century work force.

Health & Wellness: The arts foster physical, mental and emotional health, aiding recovery processes and contributing to well being. Arts therapy is a medically and economically effective tool for treating aging adults, children and people suffering from trauma, including military combat personnel and veterans.

Civic Catalysts: The arts create a welcoming sense of place and a desirable quality of life. The arts also support strong democracy, engaging citizens in civic discourse, providing forums for important issues and encouraging collective problem solving.

Cultural Legacies: The arts preserve culture and heritage, passing along a state’s unique character and traditions to future generations of citizens.

Benefits for Public Policy

The arts improve the impact of other state policies and services. Numerous states have incorporated the arts into economic revitalization, education, literacy, work-force development, tourism, community sustainability, social service and veterans-care plans.

The arts are a dynamic contributor to the small-business sector. The creative industries are composed of many talented workers who are self-employed, freelancers or employed by microenterprises. According to the National Endowment for the Arts (NEA) analysis of U.S. Census occupational data, artists are nearly 3.5 times more likely than the total U.S. work force to be self-employed (33.6% vs. 9.8%)². Many nonprofit arts organizations, too, are small businesses and play an important role in training creative workers and incubating artistic enterprises.

The arts make communities vibrant, welcoming and desirable. Cultural places and events are magnetic, attracting not only artists but also families, travelers and businesses. Creative placemaking—the gravitational effect of culture on neighborhoods—positively impacts local economies and quality of life. It creates jobs and stimulates commercial traffic, all of which leverage neighborhood revitalization, attract diverse populations and strengthen communities. Capitalizing on these effects of creative placemaking requires strong public-sector support.

The arts are a hallmark of state innovation. The arts are part of a state’s creative capacity, spurring innovation and generating unique products and services. Creativity is part of any state’s competitive edge in the global marketplace, where distinctive design and effective communications can spell the success or failure of a business or policy venture.

Public funding of the arts is an investment with high yields. This starts from the top with federal funds: each $1 in federal arts funds leverages another $9 from other public and private sources, resulting in $500 million in matching support³. In Delaware, each $1 in state arts funds leverages over $3 in state and local revenue.