Live Art in a Pandemic: The Federal Government’s Responsibility to Theatre

Live Art in a Pandemic:

The Federal Government’s Responsibility to Theatre

Allegra D’Virgilio / Communication Studies and Theatre 2022

For as long as we have existed, humans have created theatre. There is no universal definition, but the word “theatre” comes from the Greek verb “theasthai,” meaning to behold.[1] It’s a place where an audience comes together to watch a live performance. This storytelling tool has been present in every country and culture throughout history.[2]

Over time, theatre became more than just a casual art form—it developed into a professional industry. The theatre industry in the US became one of the strongest in the world, always adapting, evolving, and surviving.[3]

But the industry now faces unprecedented economic challenges due to the COVID-19 pandemic.[4] Because of physical distancing, audiences cannot come together to “behold” performers. Without its traditional funding, how can the show go on?

Because the industry is so valuable, we must scrutinize the amount of government support given. Theatre is a powerful part of the US economy, contributing substantially to local communities and the country. The most obvious example is commercial Broadway theatres that stimulate income and employment in New York City.[5] However, there are countless cases across the country. Small theatres generate $80 million per year in Chicago; in eastern Kentucky, the Appalshop theatre and art gallery pumps $1.5 million a year into a region with some of the highest poverty rates in the country.[6][7]

In 2016, arts and culture contributed $804 billion to the national GDP, significantly more than the entire travel and tourism industry.[8] About $33 billion of that came from admission to performing arts events, with theater, opera, and dance contributing $22 billion.

In 2017, arts and culture employed 5.1 million people; 300,000 of them worked in the performing arts, while millions more worked in production, including marketing, publishing, construction, and design services.[9][10] Without theatre, arts and culture would lose one of its biggest drivers for profit and jobs.

Before the pandemic, theatre experienced an economic resurgence after Hamilton’s record-breaking success.[11] Audience growth and box office statistics indicated a sort of golden age.[12] with philanthropic organizations, state arts agencies, local leaders, and other federal bodies.

While technically independent from the federal government, the NEA does receive an annual stipend from Congress. Still, its grant made up just 0.04 percent of the 2017 federal budget.[19] Meanwhile, the agriculture industry received ninety

However, even in a thriving Broadway times more than the arts despite

climate, with most productions independently funded by private producers, only about 30 percent of shows were breaking even or turning a profit.[13][14]

These shows also stir other notable economic activity by attracting visitors who interact with different industries.[15]

Before the pandemic, theatre attendance was rising at a record pace; as theatre grew, other industries profited too. These businesses will suffer without theatre driving tourism.

adding four times less to the economy.[20][21] Congress’s appropriations illustrate its disregard for the arts in favor of other industries. If the government continues dismissing the arts, the industry will undoubtedly suffer. For theatre, the damages

Organized theatre tours bring at least twenty thousand visitors every year to New York City. These tourists stay for a week or more and spend an estimated $2.5 million on shopping, hotels, and other expenses. Before the pandemic, theatre attendance was rising at a record pace; as theatre grew, other industries profited too. These businesses will suffer without theatre driving tourism.[16]

Economic models vary, but

Playbill describes American theatre as “extremely decentralized and fiercely independent.”[17] The National Endowment for the Arts (NEA)—established by Congress in 1965— strives to create opportunities for people to participate in and experience the arts. [18] It’s a major source of funding for thousands of nonprofits each year and partners are indisputable. Performers, crews, and audiences are all at risk in a regular “full house.” If theatres reopen with distanced seating, much smaller casts, and lower ticket prices, the budgets won’t add up. There is also no guarantee that people would feel safe enough to return to an enclosed space anytime soon; even if they did, they might not want to spend money on leisure during an economic crisis.[22][23] As such, the industry needs enough financial support to survive a total shutdown.

This is not the first time theatre-makers have asked the government to recognize the value of theatre and invest in it to help the industry through hard times. President Franklin Roosevelt’s Federal Art Project in

[24] It was part of a collection of New Deal projects created to assist the country’s arts and culture sector. By getting jobless artists to produce works accessible to all, the project contributed to record numbers of employment and high output during crucial Great Depression years. More impressively, it kept theatre alive.

The support needed to overcome the COVID-19 crisis will be more complex than that of the Great Depression.[25] The problems caused by the pandemic are not a singular obstacle that can be compensated for or worked around. It’s nearly impossible to find production methods that are COVID-19 safe in the short-term without reinventing our approaches to theatre.

Time is not on our side. This has been the longest shutdown in Broadway history.[26] As of May 18, Americans for the Arts reported that financial losses to nonprofit arts and cultural organizations were at an estimated $5.5 billion nationally.[27] That means $2 billion in lost government revenue and 348,000 fewer jobs, leaving 62 percent of artists unemployed. Without a bailout, the ongoing shutdown will cripple many institutions beyond repair.[28]

Nonprofit organizations are trying to bridge the gap and step up to support artists. Broadway Cares/Equity Fights AIDS, Artist Relief, and Americans for the Arts are researching artists’ needs, providing emergency grants, and advocating in Congress and the workplace on behalf of artists.[29][30][31]

More directly, many Broadway producers agreed to pay hundreds of actors, musicians, stagehands, and others for the first few weeks of the industry shutdown.[32] They also covered their health insurance for at least a month. However, these producers argue they cannot afford to do more, given that they have no box office revenue for the foreseeable future. The Broadway League, Actors Equity, other trade unions, and hundreds of arts leaders are now uniting to push for government assistance.[33]

In March, Congress passed the $2.3 trillion Coronavirus Aid Relief and Economic Security (CARES) Act to provide fast, direct economic assistance to American workers, families, and small businesses.[34] It allocated $75 million to the NEA to preserve jobs and help support organizations that had to close. [35] The distribution happened noticeably faster than in 2009, when Congress gave $50 million to the NEA as part of its stimulus during the 2008 financial crisis, but still not fast enough.[36][37]

By comparison, New Zealand launched four new funds in May to support the arts and music sector in a $175 million arts recovery package.[38] The UK also announced a recent $2 billion bailout to keep its arts sector afloat. [39] Both nations have provided far more funds than the US despite having much smaller theatre industries.

The CARES Act is not enough to save an industry crippled by an unparalleled emergency. The Broadway League declared that Broadway will remain closed for “at least the rest of this year.”[40] Without urgent and increased federal support, US theatre will never be the same again, permanently losing countless creators, artists, and venues. The government needs to allocate more emergency relief funds to a broader range of theatre organizations across the country, efficiently and directly.

First, it must become easier for different types of theatres to qualify for and access help. Small independent venues are the first to close, diminishing theatre’s diversity.[41] These nonprofit regional theatres are usually more focused on advancing equity, diversity, and inclusion in the industry.[42]

Just as importantly, the portion of money allocated from the CARES Act does not reflect the value of the performing arts economically or culturally. Because theatre contributes so much to our country, the government must provide equivalent financial support.[43] The fight to recognize the value of live art is not new—as seen through the long-standing battles over performing arts programs in public schools—and theatre has proven its worth time and time again.[44][45] The government must make a decision: acknowledge theatre’s importance once and for all and rise to the occasion, or risk losing it forever.

As our world becomes more complex and faces increasing challenges, why eliminate a powerful, reliable economic and cultural tool? It’s crucial that this cultural tradition—tied to our history and imperative to our society—continues, and that the government finally appreciates theatre’s economic and social benefits.[46] Then, hopefully, a path will emerge for the day theatre can resume.[47]

[1] “Theater (n.).” Online Etymology Dictionary. Douglas Harper. https://www.etymonline.com/word/theater. [2] Shah, Vikas. “Theatre, Performance and Society.” Thought Economics. Thought Economics, May 8, 2016. https://thoughteconomics.com/theatre-performance-and-society/. [3] “How American Theatre Has Prevailed Through History.” Arcadia Publishing. Arcadia Publishing. https://www.arcadiapublishing.com/navigation/community/arcadia-and-thpblog/july-2018/how-american-theatre-has-prevailed-through-history. [4] “COVID-19's Impact on The Arts: Research & Tracking Update May 18, 2020.” Americans for the Arts. Americans for the Arts, May 18, 2020. https://www. americansforthearts.org/news-room/americans-for-the-arts-news/covid-19%E2%80%99s-impact-on-the-arts-research-tracking-update-may-18-2020. [5] Mathtech. “The Impact of the Broadway Theatre on the Economy of New York City.” Americans for the Arts, May 15, 2019. https://www.americansforthearts.org/by-program/reports-and-data/legislation-policy/naappd/the-impact-of-the-broadway-theatre-on-the-economy-of-new-york-city. [6] Tran, Diep. “Studies Show Big Impact of Small Theatres in NY, Chicago.” American Theatre. Theatre Communications Group, November 20, 2019. https://www.americantheatre.org/2019/11/20/studies-in-show-big-impact-of-small-theatres-in-ny-chicago/. [7] Pattison, Scott D. “The Growing Importance of the Arts to Rural America.” Governing. e.Republic, March 18, 2019. https://www.governing.com/gov-institute/voices/col-growing-economic-importance-arts-rural-america.html. [8] The U.S. Arts and Cultural Production Satellite Account (1998-2016): A National Summary § (2019). https://www.arts.gov/sites/default/files/BEA2019_Final_National_Summary_Report.pdf. [9] “Arts and Cultural Production Satellite Account, U.S. and States 2017.” News Release. Bureau of Economic Analysis, March 17, 2020. https://www.bea.gov/news/2020/arts-and-cultural-production-satellite-account-us-and-states-2017. [10] “Arts and Cultural Production Satellite Account, U.S. and States 2017.” Arts and Culture. Bureau of Economic Analysis, March 17, 2020. https://www.bea.gov/data/special-topics/arts-and-culture. [11] Moore, Deanna. “'Hamilton' Broke All-Time Broadway Box Office Record.” iHeartRadio Broadway. iHeart Media, January 3, 2019. https://www.iheartradiobroadway.com/content/2019-01-03-hamilton-broke-all-time-broadway-box-office-record/. [12] Riedel, Michael. “The Great Green Way: Inside Broadway's Economic Boom.” Variety. Variety, May 22, 2019. https://variety.com/2019/legit/features/economic-boom-on-broadway-1203222804/. [13] Davenport, Ken. “10 FAQ about Broadway Investing.” The Producer's Perspective, January 10, 2016. https:// www.theproducersperspective.com/my_weblog/2016/01/10-faq-about-broadway-investing.html. [14] Riedel, Michael. “The Great Green Way: Inside Broadway's Economic Boom.” Variety. Variety, May 22, 2019. https://variety.com/2019/ legit/features/economic-boom-on-broadway-1203222804/. [15] Hayter, Chris, and Stephanie C Pierce. “Arts & the Economy - Using Arts and Culture to Stimulate State Economic Development.” The National Governors Association Center for Best Practices, n.d. https://austintexas.gov/sites/default/files/files/Redevelopment/0901arts_economy_nga.pdf. [16] Paulson, Michael. “Broadway's Box Office Keeps Booming. Now Attendance Is Surging, Too.” The New York Times. The New York Times, May 29, 2019. https://www.nytimes.com/2019/05/29/theater/broadway-box-office.html. [17] Grunfeld, Aaron. “Why America Needs A National Theatre - But It Might Look Different Than You Think.” Playbill, December 21, 2015. https://www.playbill.com/article/why-america-needs-a-national-theatre-u2014-but-it-might-look-different-than-you-think-com-376231. [18] Cowen, Tyler. “How the United States Funds the Arts.” National Endowment for the Arts Office of Research and Analysis, October 2004. https://www.americansforthearts.org/sites/default/files/how_0.pdf. [19] “The Practical Advocate - Fact vs. Fiction: Government Arts Funding.” National Assembly of State Art Agencies, 2017. https://nasaa-arts.org/wp-content/uploads/2017/07/FactvsFiction.pdf. [20] “Federal Spending: Where Does the Money Go.” National Priorities Project. Institute for Policy Studies, 2015. https://www.nationalpriorities.org/ budget-basics/federal-budget-101/spending/. [21] Hutter, Victoria. “Latest Data Shows Increase to U.S. Economy from Arts and Cultural Sector.” NEA News. National Endowment for the Arts, March 19, 2019. https://www.arts.gov/about/ news/2019/latest-data-shows-increase-us-economy-arts-and-cultural-sector. [22] Lewis, Helen. “When Will We Want to Be in a Room Full of Strangers Again?” The Atlantic. Atlantic Media Company, May 12, 2020. https://www.theatlantic.com/international/archive/2020/05/theater-survive-coronavirus-art-west-end-broadway/611338/. [23] Jordan, Richard. “Richard Jordan: Theatres Need to Test-Run New Performance Models so Audiences Feel Safe to Return.” The Stage. The Stage Media Company, June 4, 2020. https://www.thestage.co.uk/opinion/we-need-to-test-run-new-performance-models-so-audiences-feel-safe-to-return. [24] Richman-Abdou, Kelly. “Learn How the 'Federal Art Project' Gave American Artists Hope During the Great Depression.” My Modern Met, June 8, 2020. https://mymodernmet.com/wpa-federal-art-project/. [25] Tackett, Michael, and Josh Boak. “The Great Depression Inspired the New Deal. After Coronavirus Downturn, What Could It Look like Today?” Chicago Tribune. Chicago Tribune, April 25, 2020. https://www.chicagotribune.com/coronavirus/ct-nw-new-deal-coronavirus-20200425-fuszdjvytnh6jeb7f5x3dw32wq-story.html. [26] Paulson, Michael. “Broadway Will Remain Closed Through the Rest of the Year.” The New York Times. The New York Times, June 29, 2020. https://www.nytimes.com/2020/06/29/theater/when-broadway-reopening-coronavirus. html. [27] “COVID-19's Impact on The Arts: Research & Tracking Update May 18, 2020.” Americans for the Arts, May 18, 2020. https://www.americansforthearts.org/news-room/americans-for-the-arts-news/covid-19%E2%80%99s-impacton-the-arts-research-tracking-update-may-18-2020. [28] Lewis, Helen. “When Will We Want to Be in a Room Full of Strangers Again?” The Atlantic. Atlantic Media Company, May 12, 2020. https://www.theatlantic.com/international/ archive/2020/05/theater-survive-coronavirus-art-west-end-broadway/611338/. 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[42] Heartley, Al, and Jocelyn Prince. “The Empty Space: A Look at How Theaters Have Filled Gaps in Equity, Diversity, and Inclusion.” Equity Issues (Arts), Management of Arts Organizations, Racial Equity. Nonprofit Quarterly, September 15, 2016. https://nonprofitquarterly.org/empty-space-look-theaters-filled-gaps-equity-diversity-inclusion/. [43] Hutter, Victoria. “During Economic Highs and Lows, the Arts Are Key Segment of U.S. Economy.” NEA News. National Endowment of the Arts, March 17, 2020. https://www.arts.gov/about/news/2020/during-economic-highs-and-lows-arts-are-key-segment-useconomy. [44] “Arts Education Policy and Funding.” Legislation & Policy. Americans for the Arts, n.d. https://www.americansforthearts.org/by-program/reports-and-data/legislation-policy/legislative-issue-center/arts-education-policy-and-funding. [45] “How American Theatre Has Prevailed Through History.” Arcadia Publishing. 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