Author: Moore, Thomas Gale

Publication Year: 1975

Media Type: Book

Summary:

Abstract:

In our economy, under a free market system, we normally assume that the best allocation of resources is determined by the free market. The price of goods and services reflects the cost to society of these services, and the consumer purchases them on the basis of what they are worth to him.

Every dollar spent on the arts represents a dollar of resources which has been transferred from some other use. Normally, therefore, we would believe that a dollar's worth of arts should be equal in subjective value to a dollar's worth of other goods and services. If we lower the price of theatre tickets or opera tickets through a subsidy, consumers will normally buy more. The value to a consumer of the marginal purchase of tickets will be equal to the price of the tickets, which in fact is lower than the cost of producing that additional service. Hence, one would normally argue that it would be a waste of resources to subsidize the arts or any other such field.
(p. 25-41)

CONTENTS
Social benefits exceed private benefits.
Prestige.
Attraction of business and tourism.
Income redistribution.
Income distribution.
Price discrimination.
Infant industry.
Innovation and the arts.
Summary of reasons for subsidization.
Who should subsidize?
How much aid?
To subsidize or not to subsidize?

Arts & Intersections:

Categories: Creative Economies