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Lawrence Reed is the president of FEE. ... See All Posts by This Author

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Ideas and Consequences | Lawrence W. Reed

What’s Wrong with Government Funding of the Arts

People who oppose Soviet-style collective farms, government subsidies to agriculture, or public ownership of grocery stores because they want the provision of food to be a private matter in the marketplace are generally not dismissed as uncivilized or uncaring. Hardly anyone would claim that one who holds such views is opposed to breakfast, lunch, and dinner. But people who oppose government funding of the arts are frequently accused of being heartless or uncultured. What follows is an adaptation of my letter to a noted arts administrator that articulates a case for art, like food, that relies on private, voluntary provision. The person to whom I wrote shall remain nameless to protect the innocent.

Dear Sir: Thanks for sending me your thoughts lamenting the idea of cuts in arts funding by state and federal governments. In my mind, however, the fact that the arts are wildly buffeted by political winds is actually a powerful case against government funding. I’ve always believed that art is too important to depend on politicians, too critical to be undermined by politicization. Furthermore, expecting government to pay the bill for it is a cop-out, a serious erosion of personal responsibility and respect for private property.

What Multiplier?

Those “studies” that purport to show X return on Y amount of government investment in the arts are generally a laughingstock among economists. The numbers are often cooked and are almost never put alongside competing uses of public money for comparison. Moreover, a purely dollars-and-cents return—even if accurate—is a small part of the total picture.

The fact is, virtually every interest group with a claim on the treasury argues that spending for its projects produces some magical “multiplier” effect. Routing other people’s money through the government alchemy machine is supposed to somehow magnify national wealth and income, while leaving it in the pockets of those who earned it is somehow a drag. Assuming for a moment that such preposterous claims are correct, wouldn’t it make sense from a purely material perspective to calculate the “average” multiplier and then route all income through the government? Don’t they do something like that in Cuba and North Korea? What happened to the multiplier in those places? It looks to me that somewhere along the way it became a divisor.

What if, for instance, “public investment” simply displaces a certain amount of private investment? (Arts subsidy advocates never raise this issue, but I know that I personally am far less likely to make a charitable contribution to something I know is on the dole than to something I know rests on the good hearts of willing givers). What if “public investment” brings with it some baggage like political manipulation that over time erodes the integrity of the recipient institutions? How does that fit into the equation? What if I, as a taxpayer who earned the dollars in the first place, could keep what the government would otherwise spend on the arts and invest it in my kid’s college education and end up getting twice the return on my money that the government would ever get on the arts?

If simply getting a good return qualifies an activity for public investment and government involvement, then I can think of hundreds of companies and industries that government “should” have spent tax money on—from silicon chips to Berkshire Hathaway. The Constitution’s framers could have dispensed with all that rigmarole about rights of citizens and duties of government and stopped with a preamble that said only, “We the People, in order to get a high return on our tax money, establish this government to do whatever anybody can show will fetch a hefty payback.”

Sometimes those of us who put faith in such things as the individual, private property, and the marketplace are accused of focusing solely on dollars and cents. But actually, it’s those on the other side who are more guilty of this. The arts funding issue is a case in point. Advocates of government funding focus on dollars—more of them, always more of them—and no matter how much government funding of the arts we have, it’s never enough.

Meaningful Money

Those of us who wish to nurture the arts privately stress other, far more important values. I believe, for example, that money which comes voluntarily from the heart is much more meaningful than money that comes at gunpoint (which is ultimately what taxes are all about). You’ve won so much more when you convince people to do the right thing, or support the right causes, because they want to instead of because they have to. For that reason I don’t believe in shotgun marriages either.

I can think of an endless list of desirable, enriching things, very few of which carry a tag that says, “Must be provided by taxes and politicians.” A rich culture consists, as you know, of so many good things that have nothing to do with government, and thank God they don’t. We should seek to nurture those things privately and voluntarily because “private” and “voluntary” are key indicators that people believe in them.

The surest way I know to sap the vitality of almost any worthwhile endeavor is to send a message that says, “You can slack off; the government will now do it.” That sort of flight from responsibility, frankly, is at the source of many societal ills today: Many people don’t take care of their parents in their old age because a federal program will do it. Most parents these days shirk their duties to educate their kids because government schools are supposed to do that (even though many of them do a miserable and expensive job of it).

What’s Important

I know that art is just about everything to some people, especially those whose living derives from it. But as adults we have to resist the temptation to think that what we are individually doing is somehow the greatest thing since sliced bread and that therefore it must receive more than what people willingly give it.

I think what my church does is important, but I don’t want government giving it money. I think what we do at FEE is important, but we’d go out of business before we’d take a nickel of somebody’s money against his will. I might even like certain nongovernment-funded art forms more than the ones that are politically well connected enough to get a grant, but I don’t want to corrupt them with a government check. As children we want what we want and we want it now, and we don’t care where it comes from or even if somebody has to be robbed for us to get it. But as discerning adults who put a higher premium on mutual respect and building a culture that rests on creativity and persuasion over coercion, we should have different standards.

Lots of things are important in life. Spare us the sanctimonious and self-serving nonsense about taking other people’s money for the art you happen to think they should pay for.

There Are 7 Responses So Far. »

  1. At one point in my life, when I was managing a performing arts center, I wrote a grant and submitted to NEA. They approved it – for twice the amount I had asked for. In order to accept the grant, I had to figure out how to waste 50% of the money they’d sent me. My only other choice was to refuse the grant altogether which would have meant cancelling the project.

  2. To make a donation is to decide how to allocate money. To make that decision people need to have information about the potential recipients. Facing difficulties in making an evaluation of the importance of the endless artistic structures that one can donate to, people will inevitably seek experts’ opinions. The panels of experts appointed by Governments in most countries of the world are reducing search and information costs for the people who value the arts but wouldn’t know how to help. Otherwise, only those who are prone to giving and willing to give it at a certain moment in time and are well informed about the arts world would be allowed to contribute to a society where the arts are present.

  3. Susana, either you are very subtle in your sarcasm, or you have the straight jacket on too tight. The government panels are selecting winners in the artistic race. They tend to be, Not 100% but a large majority, far left radical liberals. The art they support reflects this. If 1% of my tax money goes to those art projects that literally urinate on my sesibilities, why have I gotten for my money? A more culturally diverse society? I dont think so. I am paying the government to insult me and belittle my social, cultural and religious beliefs. No thanks. I would like my money back.

    I am not a far left, all taxes are bad right wing nut. I do believe people would have less trouble parting with tax money if they thought they were getting any value for their money. To see my hard earned money flushed into to a sewer of an art culture makes me want to pay less, not more.

  4. I meant that I am not a far right wingnut. Apparently, I am not a proofreading nut either. :)

  5. The purpose of the government in a free society, as set forth by our founding fathers, is to protect the individual rights of its citizens. The government has no constitutional authority to spend public funds to support the arts. It’s as simple as that.

    fs

  6. I agree with Mr. Swemson’s legal argument but I like Mr. Reed’s moral and practical arguments more. I question the virtue of any person or organization that takes taxpayer money and I hesitate to support them in any way. Art that actually needs government support must have little value unless the government is spending its own money as when some Pharaoh built the Sphinx. Then it was obivious the rulers owned all the output of their subjects. They in fact were spending their own money. Today I would hope that it is not the attitude of some low level NEA official.

  7. [...] sind solche Argumente stichhaltig? Das fragt sich der US-Ökonom Lawrence W. Reed in der Zeitschrift The Freeman. Teilen Sie dies [...]

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