COVID-19 Effects on the U.S. Arts and Culture Economy and Sustainable Economic Models for the Future

Abstract

The first COVID-19 case appeared in Wuhan, China in 2019, creating a global public health crisis and a domino effect of disruptions to the global economy and industries. This paper explores the impact of the coronavirus pandemic on one of the hardest hit sectors in the U.S.: the cultural and creative economy. Even before the pandemic, the arts were chronically underfunded due to structural factors, only amplified by COVID-19. This paper delves into the extensive short-term and long-term repercussions of the pandemic through examining publicly released data, studies, and professional insights in each year following the outbreak. Furthermore, the paper offers insights into the prospects for the creative economy in a post-COVID world. While recovery and rebounding of the arts economy has focused on an innovative virtual world and leveraging technology, this essay offers a fresh examination of renovating the arts and culture industry from its fundamental building blocks. A rebranding of the funding model structure, namely the arts social enterprise approach, can incorporate a variety of funders and sponsors to ensure a sustainable, strong safety net. Future research directions could focus on the complete recovery. The paper concludes that COVID-19 has been exceptionally damaging to the industry, but new social enterprise models and leveraging 21st century technology can help the arts rebound and revive.