L.A. has lost over $1.5 billion because of Writer’s Strike
Now that the Directors Guild of America has reached an agreement with Hollywood studios, the striking WGA has returned to the negotiating table with the hope of coming to some sort of an agreement with the studios.
Former Secretary of Labor Robert Reich has said that:
“The writers’ strike is having a much larger economic impact on L.A. than its direct impact on writers and studios…. The L.A. economy revolves around entertainment, and entertainment depends to a large extent on entertaining scripts. Without the latter, the entire economy becomes more fragile.”
Jack Kyser, chief economist for the Los Angeles Economic Development Corp., estimates that the 11 week strike has resulted in a $1.5 billion hit to the local economy. The UCLA Anderson School of Management suggests that the number is much lower — an estimated loss of $380 million if the strike lasts until March — and that several factors will offset the impact of the work stoppage.
Whatever the case, the human costs have affected nearly everyone in the entertainment business in Los Angeles or businesses that cater to entertainment business clientele. MSNBC reports that Kate Biscoe - a makeup artist with credits such as “Memoirs of a Geisha” and “Factory Girl” says:
“It’s been pretty dead… A lot of people are calling me looking for work. I get a call or two a day. They need the hours so they can keep their health insurance.”
Sue Cabral-Ebert, president of Local 706, which represents hair stylists and makeup artists says:
“People are scared and angry….. and some will be losing their houses soon….. They [makeup artists] can get 15 days of work doing press and parties with an actor, which is a huge amount of money to a makeup artist…”
It’s true that some makeup artists earn an entire living just during awards season. Actors and actresses need makeup artists not just for shows like the Golden Globes and the Oscars, but also for many other related public appearances.
The Los Angeles Economic Development Corp. is a private, non-profit organization that provides research and consulting to media, government and private businesses. It puts the cancellation of the Golden Globes alone at at least $60 million in lost revenues to hotels, restaurants, transportation services, party venues and more.
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