Why countries spent billions to support Hollywood
State governments use our tax dollars to build roads, fund schools, and provide health care. In 38 states, they also funnel money to a private, high-gloss industry: Hollywood.
That’s a lot of money. My colleague Christopher Coe and I found that those states have spent more than $25 billion over the past two decades to support the film and television industry. The idea is to attract companies to spend money, employ local people and stimulate the economy.
The problem is that these programs actually cause states to lose huge amounts of money. Studies show that these efforts typically return a quarter or even a cent on every dollar given to studios.
However, lawmakers are not slowing their spending. Quite the opposite. Economists say Hollywood is playing states against each other, and competition is pushing it to improve its deals to attract productions. Under increasing pressure from New Jersey, New York recently expanded its film incentive program by 67% to $700 million. Oklahoma went from $4 million to $30 million in just three years, in part to stay competitive with Texas. Texas then decided to spend nearly seven times that amount.
“You can find an almost unlimited number of better uses for the same dollars,” said Michael Tom, a tax expert at the University of Southern California. “Who’s to say: Keep giving money to Hollywood; my child’s school doesn’t need new books?”
My colleagues and I wanted to understand why these programs persist. This morning we published the third article in our series on this topic. Here’s a quick look at what we found.
Parties and engraving
States began strengthening their film incentive programs at the turn of the twentieth century. The idea is that when producers come to shoot in a state and spend money there, the government refunds them 20 to 30 percent of their costs as a thank you for choosing that state.
Filming of films and television series employs electricians, hairdressers and many other crew members, regulators say. This means jobs. Money flows through local economies to hotels, restaurants and dry cleaners. In Georgia, for example, the film industry says the state gets $6 or $7 in economic value for every dollar invested
My colleague Jonathan Abrams went to a small town in Georgia and saw some of the effects there firsthand. A restaurant owner said sales go up every time produce comes to town. A woman who owned a jewelry and leather goods store sold actress Anne Heche a $300 purse. But even as the community enjoys visits from celebrities and infusions of money, the state pays to support these benefits.
Of course, skeptical economic reports can’t match the allure of exclusive parties and the promise of a supporting role in a blockbuster movie. Hollywood insiders lobby politicians with campaign donations and perks, which is another reason states continue to expand these programs. In Michigan, a big-name producer wined and dined lawmakers just as the state’s film incentives were about to expire. If you glance at the right scene from “Batman v Superman: Dawn of Justice,” you’ll spot the former Senate Majority Leader.
Countries have to offer a good deal, otherwise the production will simply be filmed elsewhere. This arms race helps explain why more and more public money is flowing into these programs, experts say.
Do you remember the battle between Texas and Oklahoma? We’ve documented this in our most recent work. After Texas committed $200 million, Oklahoma began pushing to add millions more to its own program. Texas native Dennis Quaid has already planned the next step in his home state: He wants to approve $1 billion in the upcoming budget.
latest news
Israel-Hamas war
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The Israeli army said that it had found the body of the hostage who was kidnapped from a kibbutz on October 7 and held in Gaza.
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Wild spinach has become Gaza’s lifeline at a time when most food is unavailable or expensive.
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Protests over the Biden administration’s handling of the war have complicated the Democratic Party’s ability to campaign in an election year.
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Discussion on Sunday
Can President Biden change the American position on the war in Gaza?
no. Israel’s goals of removing Hamas from power align with Biden’s, and that means causing serious harm to civilians. Despite his anger at Benjamin Netanyahu, “Biden’s respect for Israel is rooted in his emotional and political DNA,” Aaron David Miller wrote in the Times Opinion.
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fabulous: The UConn men’s basketball coach wears the same socks and underwear to every game, so he travels with a washing machine.
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New York Times Magazine
I’ll be part of a new Q&A series, The Interview, starting in a few weeks. Ahead, I’ll share with you some of my favorite past interviews. This one is with the great cartoonist and creativity guru Linda Barry.
I know you’ve done work on pairing with your Ph.D. Students with kindergarten so that children can help graduate students solve problems. What does that look like in practice?
When I started teaching at the University of Wisconsin-Madison, I couldn’t understand why all the graduate students were so miserable. Then I thought, this is laser focus on getting a certain thing done. But children can change students’ perspectives in really useful ways. My students had to be on the ground with them to work together. It’s hard to explain, but it changes you.
I bet there are a fair amount of people in the world — in my head, I imagine some serious business people — who think that playing ground isn’t something adults should do. Is there any way to convince these people of the value of trying to get into that childish mindset?
Why did he try?
Because these people run the world.
The reason they run the world is because of the way they were built. But it won’t help this person. These guys, they have no need. So there is not much we can do, and this is the hardest thing to accept.
I used the phrase “the way I’m built.” When it comes to fun, can a person change his structure?
Whatever man we imagine, if you hand them their 8-month-old grandchild, that man will dance, sing, and tell stories. We can all still communicate this way. There’s an amnesia about the depth of that exchange and an amnesia about how when you make a story or paint a painting, it’s the same kind of exchange, and having that is what you were born to do.
Read more from the interview here.
books
Best selling times: Former Supreme Court justice Stephen Breyer shares some of his philosophies in Reading the Constitution, a popular nonfiction paperback.
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next week
What should you pay attention to?
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A total eclipse will pass over North America tomorrow.
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Eid al-Fitr, which marks the end of the holy month of Ramadan, is expected to begin this week.
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The House of Representatives is expected to introduce articles of impeachment against the Secretary of Homeland Security on Wednesday. The Senate could reject them quickly.
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South Korea is scheduled to hold parliamentary elections on Wednesday.
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Biden will host a leaders’ summit on Thursday with the Prime Minister of Japan and the President of the Philippines.
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Coachella starts on Friday.
Meal plan
Spring cleaning your kitchen might mean removing spices and jars from your refrigerator. In this week’s Five Weeknight Dishes newsletter, Genevieve Ko features recipes to help you declutter. Add a hot spice to chicken or tahini to a spinach and cilantro soup.
