The Value and Support of the Arts

Econ 185/80J Fall 2006 The Value and Support of the Arts: Challenges and Opportunities in American Society

Readings Basic “Texts” Florida, Richard, The Rise of the Creative Class [Basic Books, 2002] Florida, Richard, The Flight of the Creative Class [Harper , 2005] McCarthy, Kevin, et. al. The Performing Arts in a New Era [Pew Charitable Trust/RAND, 2001] McCarthy, Kevin, et. al., Gifts of the Muse [RAND 2004]

Broad Course Outline The Social Sector and Art and Culture—The Broad Outlines (first 3 class meetings)

The norm in economics has been to characterize the economy in a two-fold manner: the public (government) and the private (profit oriented) sectors. It is in these two sectors where the wants and needs of society are assumed to be met. In reality, a third sector, what may be referred to as the “social sector” has come to play an ever increasing and crucial function in our society. This sector is made up largely (but not exclusively) of firms operating under non-profit status. It is in this social sector where the vital educational, health, welfare, spiritual, and cultural “products” emanate. While central to the overall well- being of society, this sector has received little attention in contrast to the traditional public/private characterization. At the same time there is a growing literature that offers the opportunity for considerable study. We then turn to a more intensive discussion of what will be the main focal point of the the course, art and culture. Here we will consider the broad macro economic aspects, with a focus on the non-profit portion of the sector (as distinct from what may be thought of as more popular/commercial aspects); in particular, the size of the sector in terms of GDP and employment, as well as the economic rationale for non-profit status of the participating firms.

The Value of Creativity in Society (Discussion of this will be interspersed as the speaker schedule below permits)

In the more “academic” portions of the class we will focus on two sets of readings; first the work of Richard Florida, in discussing both the “rise” and subsequent “flight” of what he has called the “creative class.” We will also consider two short recent monographs published by the RAND Corporation, dealing with the changing nature of the arts environment, and on what they consider the real value that flows from the creative sector.

Fund Raising, Philanthropy, Consulting, Art and Culture—The Specifics

During the majority of class time, a number of outstanding individuals across the sectors discussed above will be leading class lecture/discussion. These individuals (listed below) will start “from the beginning,” in discussing how and why they got into their respective professions, and then turn to their present work. There will be ample time for student questions and discussion during each class session. Speaker Schedule (subject to modest change in date, and possible additions)

Reb Rebele—Philanthropist 10/4 Robin Larson—Santa Cruz Community Foundation 10/4 Rob Kleva—Monterey Jazz Festival 10/9 Dean Silvers—Santa Cruz Baroque Festival 10/11 Shelby Graham—Sesnon Art Gallery 9/18 Ellen Primack—Cabrillo Music Festival 10/23 Tom Fredricks—Cabrillo Music Festival 10/23 Jennifer Tuveson—Creative Voices 9/25 Nancy Loshkajian—Philanthropy Consultant Ann McCrow—UCSC Arts Development 11/6 Marcus Cato—Shakespeare Santa Cruz 11/6 Bunny Taveres—Public Media (TV/Radio) Development11/27 Mark Gilbert—AMS Planning & Research Corp--Consulting11/29

A partial list of topics includes the following:

The role of community in support of many social sector functions—in this area, there is the possibility of considering issues such as fund-raising and development, donor development, program development, as well as the legal aspects of gift giving that influence the amount and nature of major contributions.

The role of the development officer in facilitating the quality and expansion of arts offerings in a university.

The role of the artistic director in confronting the inherent conflict between quality and production cost, and his relationship with the organization’s board of directors. . The role of the board of directors in dealing with the artistic director, manager, and public.

The role of the program director in developing public offerings that are of high quality and can survive in an era of ever shrinking public funds.

The opportunities that exist for the creative artist via access to the national public media.

The role of the outside consulting firm in aiding all of the above.

Written Work Specific writing assignments will be discussed during the first week of the quarter. Some critical analysis of the formal reading assignments will be expected as part of the written work. There will be no final exam in this class.