Cultural subsidy

A cultural subsidy is a payment from the government to specific cultural industries to ensure that some public policy purpose in culture (e.g. multiculturalism, bilingualism, minority and languages, and preservation of traditional dance, music, food, art or other practices) are preserved and maintained in society. Cultural subsidies work similarly to other forms of subsidies such as industrial and consumer subsidies and have similar goals of expansionary economic results and increased utility for their targeted recipients.

Cultural subsidies are distributed in the form of grants and payment from the government to various institutions, groups or citizens who are seen to meaningfully contribute to their society's culture. Some of the most familiar efforts are: free museum entrances for children and seniors, public art instalments, government funding for afterschool art-based programs and government grants to culturally focused non-profits.

A common emphasis for cultural subsidies is the provision of resources for underserved communities or groups, whose cultural background and heritage may be at risk without additional financial support, or who traditionally lack access to mainstream cultural events and participation. For example, the National Endowment for the Arts states that 40% of their activities support high-poverty neighbourhoods, 36% of their grants are awarded to organisations that serve those with disabilities, in institutions and veterans, while 33% of their grants are awarded to serve low-income audiences.^[1]

Cultural subsidy implementation in the US

The National Council for the Arts was established by US President Lyndon B. Johnson through the National Arts and Cultural Development Act of 1964 and is the US federal program which provides cultural subsidies. Its purpose is to review and recommend applications for grants, funding guidelines and leadership initiatives in the US. to the Chairman of the National Endowment for the Arts. There are eighteen Presidentially appointed members of the council, with six additional members of Congress serving two-year, non-voting terms. Members are selected for their extensive knowledge, expertise and interest in the arts as well as outstanding backgrounds in service or recognition within the arts.^[1]

The annual budget for the National Council for the Arts is set by Congress and currently receives .004% of the total, or US$149.8 million. 40% of their grant budget is directly received by states via regional arts agencies who distribute the funds, with stipulations that every state and regional partnership allocates a portion of funding for underserved communities. Direct awards to organisations and individuals who apply through the National Endowment for the Arts make up the remaining 60% of their annual budget.^[1]

Intended economic effects

Like other subsidies, cultural subsidies are utilized with the intent to expand economic growth and utility within a specific area. The functionality of cultural subsidies can be seen through typical supply and demand graphs like those pictured below.

As prices for arts and culture related items, events and classes increase, the demand for them decreases. On the other hand, as prices increase, the supply also increases as more artists and cultural entities seek gains. Where the two forces of supply and demand meet is the equilibrium point (e¹).^[2]

When cultural subsidies are applied from the demand-side that means they focus on growing the demand from consumers for art and culture related products. This most often is reflected in free or discounted ticket sales for art and culture events and purchases for pieces of art that consumers would otherwise not be able to buy due to budget constraints. The ultimate goal in utilising demand-side cultural subsidies is to increase the demand for art at every price level it is offered. Below, we can see the result is an outward shift of the demand curve to the right, and an increase in both the equilibrium supply and demand (e¹ to e²). The difference from P¹ to P² is the amount which is compensated by the subsidy, and the total area of from P², e² and Q² is the cultural sector's revenue. Demand-side subsidies are typically viewed as an effective way to increase both the output of the cultural sector and increase incomes for the providers within it.^[2]

Governments can also approach cultural subsidies from the supply-side in an effort to increase the economic power of those who supply cultural products. This allows cultural providers the opportunity to produce and supply more than they would be able to without subsidised assistance. Instead of raising both the price and quantity of cultural products, as the demand-side subsidies do, supply-side subsidies lower price while increasing quantity, as show in the model below. Supply shifts downward, to the right and the new equilibrium moves from e¹ to e². Total revenue shifts from the blue rectangle to the red rectangle, which demonstrates an expansion of cultural sector output (Q¹ to Q²), but not necessarily an increase in economic growth.^[2]

v t e Culture
Outline
Sciences	Cultural anthropology Cultural astronomy Cultural ecology Cultural geography Cultural neuroscience Cultural studies Culturology Culture theory
Subfields	Bioculture Cross-cultural studies Cross-cultural communication Cross-cultural leadership Cross-cultural psychiatry Cross-cultural psychology Cultural analytics Cultural economics Cultural entomology Cultural history Cultural mapping Cultural mediation Cultural psychology Cultural values Culturomics Intercultural learning Intercultural relations Internet culture Philosophy of culture Popular culture studies Postcritique Semiotics of culture Sociology of culture Sound culture Theology of culture Transcultural nursing
Types	Constructed culture Counterculture Dominant culture Folk culture High culture Individualistic culture Legal culture Low culture Microculture Official culture Political culture Civic Popular culture Urban Primitive culture Resistance through culture Subculture Alternative culture Fandom Far-right subcultures Youth subculture list Super culture Underground culture Vernacular culture Culture by location
Aspects	Acculturation Cultural appreciation Cultural appropriation Cultural area Cultural artifact Cultural baggage Cultural bias Cultural capital Cross-cultural Cultural communication Cultural conflict Cultural cringe Cultural dissonance Cultural emphasis Cultural framework Cultural heritage Destroyed Cultural icon Cultural identity Cultural industry Cultural invention Cultural landscape Cultural learning Cultural leveling Cultural memory Cultural pluralism Cultural practice Cultural property Cultural reproduction Cultural system Cultural technology Cultural universal Cultureme Enculturation High- and low-context cultures Interculturality Manuscript culture Material culture Non-material culture Organizational culture Print culture Protoculture Relational mobility Safety culture Technoculture Trans-cultural diffusion Transculturation Visual culture
Politics	Colonial mentality Consumer capitalism Cross cultural sensitivity Cultural assimilation Cultural attaché Cultural backwardness Cultural Bolshevism Cultural conservatism Cultural contracts Cultural deprivation Cultural diplomacy Cultural environmentalism Cultural exception Cultural feminism Cultural genocide Cultural globalization Cultural hegemony Cultural imperialism Cultural intelligence Cultural liberalism Cultural nationalism Cultural pessimism Cultural policy Cultural racism Cultural radicalism Cultural retention Cultural Revolution Cultural rights Cultural safety Cultural silence Cultural subsidy Cultural Zionism Culture change Culture minister Culture of fear Culture war Deculturalization Dominator culture Interculturalism Monoculturalism Multiculturalism Biculturalism Multiracial democracy Pluriculturalism Polyculturalism Transculturism
Religions	Buddhism Christianity Catholicism Cultural Christians Protestantism Role of Christianity in civilization Eastern Orthodoxy Mormonism Cultural Hindus Islam Cultural Muslims Judaism Sikhism
Related	Animal culture Archaeological culture Bennett scale Cannabis culture Circuit of culture Civilization Coffee culture Cross-cultural Cultural center Cultural competence Cultural critic Cultural determinism Cultural diversity Cultural evolutionism Cultural homogenization Cultural institution Cultural jet lag Cultural lag Cultural literacy Cultural mosaic Cultural movement Cultural mulatto Cultural probe Cultural relativism Cultural tourism Pop-culture Cultural translation Cultural turn Cultural sensibility Culture and menstruation Culture and positive psychology Culture and social cognition Culture gap Culture hero Culture industry Culture shock Culturgen Children's culture Culturalism Cyberculture Death and culture Disability culture Deaf culture Drinking culture Drug culture Eastern culture Emotions and culture Intercultural communication Intercultural competence Languaculture Living things in culture Media culture Oppositional culture Participatory culture Permission culture Rape culture Remix culture Tea culture Transformation of culture Urban culture Welfare culture Western culture Youth culture
Category Commons WikiProject Changes

Cultural subsidy implementation in the US

Intended economic effects

Issues facing cultural subsidies

See also

References

Related Articles