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Nationally, the arts industry generated $135.2 billion of economic activity - $61.1 billion by the nation's nonprofit arts and culture organizations in addition to $74.1 billion in event-related expenditures by their audiences. This economic activity supports 4.1 million full-time jobs. Our industry also generates $22.3 billion in revenue to local, state, and federal governments every year - a yield well beyond their collective $4 billion in arts allocations.
With concerns over job creation and business growth holding a prominent - and persistent - position on policy agendas today, governors are increasingly calling on state agencies to support economic growth. It's not just economic and workforce development agencies that governors want on the case. Some governors are including state arts agencies in this all-hands-on-deck approach and are putting in place policies and programs using arts, culture, and design as a means to enhance economic growth.
A city thrives when its residents thrive. Yet many families, even though they are employed fulltime, continue to struggle to meet their families' basic needs. Local elected officials across the country have discovered a way to strengthen working families while bringing more federal dollars into the local economy: by connecting eligible workers to the Earned Income Tax Credit (EITC).
Almost 22 percent of children are poor. In 2012, over 16 million children in the U.S. were living in poverty according to the official measure, defined as living in families with income under $19,090 for a family of three. This is almost identical to figures for 2011, but an increase of nearly three million and 4 percent over 2007 (the last year before the Great Recession). Children are more likely than adults to be poor.
Our key substantive finding is that early improvements in child health, academic achievement, and behavior as well as improved parenting can yield sizable economic benefits for adult earnings. This is all the more striking when we recall that our estimates, for the most part, capture only a portion of the effects that early interventions are likely to have. Given data constraints for early achievement, attention, and the home environment we have focused on effects that work through improvements in school achievement in adolescence and that result in gains in one adult outcome, earnings. We have ignored effects that work through other intermediate outcomes, such as behavior and health, including peer effects, as well as effects on other adult outcomes, such as physical health. Moreover, our estimates do not take into account any synergies that might arise from concurrent improvements across more than one domain. If we could measure the full range of effects, the economic payoffs would surely be much larger than those estimated here.
Policymakers have long understood the job creation opportunities that public infrastructure projects provide. To enhance these jobs' economic and social impact and lift families out of poverty, many cities and states have incorporated job quality and equity policies into public infrastructure projects. Such policies ensure that these projects don't simply create jobs, but instead provide good jobs in the local communities that need them. These projects can create quality jobs that provide valuable pathways out of poverty and into a sustained career, while building much-needed infrastructure. Some cash-strapped municipalities have turned to public-private partnerships (P3s), which use private capital to finance public infrastructure projects, as a strategy for accomplishing infrastructure renewal and development. The P3 approach demands the same focus on jobs that traditional infrastructure projects have, and the successful strategies used for traditional projects may be used on P3 projects with little or no modification.
Suffering from years of disinvestment and persistently high rates of poverty, this case study shows how Memphis city officials joined forces with the private and nonprofit sectors to have a collective impact on some of the city's most pressing social issues.
Terms such as "creative economy," "creative class," and "cultural economy" are becoming more common among urban planners, arts administrators, economic developers, and business and municipal leaders. These terms reference a variety of types of jobs, people, and industries, including the sectors of visual, performing, and literary arts, as well as applied fields like architecture, graphic design, and marketing. Whatever label is used, this use of terminology linking culture and the economy indicates recognition of the connections among the fields of planning, economic development, and arts and culture. The activities of the arts and culture sector and local economic vitality are connected in many ways.
The situation of high unemployment for black men is not new. It has persisted for decades, and scholars, sociologists, economists, policy makers, and advocates have brought attention to various aspects of this challenge and put forth solutions. Yet, it is seemingly an intractable situation. In 2012, three years after the end of the recession, the black male unemployment rate was in the double digits for every age category up to age 65. This was not the case for any other racial group. In 2010, half of working black men were employed in the two occupational clusters with the lowest average earnings. The situation was the same in 2000, and in 1990. In addition to being disproportionately represented in low-wage occupations, black men are much more likely than white men to be working part-time and to experience longer durations of unemployment.
Philadelphia has the worst poverty rate of the ten largest U.S. cities. Twenty-eight percent (28%) of Philadelphians - between 430,000 and 440,000 people - live below the federal poverty level. This includes 39% (135,000) of our children, 27% (265,000) of our working age adults and 17% (32,000) of our seniors. Some 1,500 families become homeless every year, including over 3,000 children. Many Philadelphians live above the federal poverty line but still face difficult choices, like whether to pay a utility bill or put food on their table. Poverty is a social problem. The City suffers from lost tax revenue, an increased tax burden, and a deterrent to the location of new businesses, jobs and income earners. All Philadelphians have a vested economic interest, if not a moral imperative, to fight poverty. Poverty diminishes the quality of life for everyone and tarnishes our city's reputation as a vibrant, thriving place to live, work, and play.