The Economic Impact of Arts and Culture

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Photo by Erol Reyal

Adam Braatz

Adam Braatz

In 2022, Milwaukee’s nonprofit arts and culture industry generated $334,577,488 n economic activity according to the newly released economic and social impact study, Arts & Economic Prosperity 6 (AEP6). That economic activity—$191,808,940 in arts and culture nonprofit spending and $142,768,548 in event-related audience spending—supported 4,550 jobs and generated almost $58 million in local, state, and federal government tax revenue. Nationally, the AEP6 study reveals that America’s nonprofit arts and culture sector is a $151.7 billion industry—one that supports 2.6 million jobs and generates $29.1 billion in government tax revenue. More than 86% of people surveyed in the study reported that the activity or venue they were attending was “a source of neighborhood pride for the community” and would “feel a sense of loss if that activity or venue was no longer available.” 

Imagine MKE played an important role in facilitating the Arts & Economic Prosperity study. The nonprofit organization’s executive director, Adam Braatz, answered some questions. 

Tell me about Imagine MKE. What is your mission? 

Imagine MKE is a nonprofit organization committed to advocating for, advancing, and amplifying the arts, culture and creative economy throughout the Greater Milwaukee area. Our mission is to drive vibrancy, prosperity and systemic change in the Greater Milwaukee area by advancing and advocating for our region’s creative economy. We envision Milwaukee as a nationally recognized creative community, a magnet for talent and investment, where social and economic opportunity is powered by an equitable, diverse and thriving creative economy. 

What was Imagine MKE’s role in facilitating the Arts & Economic Prosperity study? 

Imagine MKE was proud to work with Americans for the Arts and represent the Greater Milwaukee area in their Arts & Economic Prosperity 6 study, which meant intercepting audiences (with the help of many) at arts performances in Milwaukee over the last year, as well as communicating with arts organizations about how to participate in the organizational surveys. We couldn’t have done it without participation from the outstanding and diverse organizations that comprise our region’s arts and culture ecosystem—both large and small organizations—as well as the generous support from the Milwaukee Repertory Theatre, the United Performing Arts Fund and First Stage. It was truly a team effort. 

Were you surprised at the high numbers, indicating the significant impact of the arts in Milwaukee? 

The numbers were not a surprise, no. These figures confirm what we already know: Milwaukee’s vibrant arts and culture sector is a powerful economic driver. This sector employs people locally, drives purchases of goods and services from the community, drives commerce to local businesses, and attracts tourism. 

Have Americans for the Arts conducted this sort of study in Milwaukee in past years? If so, when—and how have the numbers changed? 

This is the sixth iteration of the Arts & Economic Prosperity study. Previous studies were published in 1994, 2002, 2007, 2012 and 2017. The current numbers tell a compelling story on their own. The study’s reach and structure was greatly refined since the last iteration in order to newly center BIPOC and ALAANA [African, Latinx, Asian, Arab, Native American] audiences and arts organizations in a way that previous studies did not. 

Tell me about the methodology. How were the statistics for the Arts & Economic Prosperity gathered? 

From Americans for the Arts: To accomplish AEP6, a customized economic impact study is completed for each of the participating communities. In each community, a research partner organization is identified to assist Americans for the Arts with two primary data collection efforts: an audience-intercept survey of attendees to arts and culture events that take place in the community, and a budget and attendance survey of the comprehensive universe of nonprofit arts and culture organizations that exist in the community. 

Each participating community receives a final report customized for their survey data and based on an economic input-output model tailored for their specific local economy. Researchers then use the localized findings to extrapolate national impact estimates for the entire nonprofit arts and culture industry. 

More on that “extrapolation.” I’m not an economist, but the research methodology relies on an economic framework called an input-output model that’s been recognized through a number of Nobel prizes awarded for its comprehensiveness. Through this, researchers are able to frame the data gathered within communities in context with economic data gathered from other governmental agencies. 

You can learn more on the specifics by visiting Americans for the Arts website, and reading the FAQ from the AEP6 study. 

Is it still true that Wisconsin is near the bottom of the 50 states for public funding for the arts? 

Unfortunately, yes. The National Assembly of State Arts Agencies has forecasted Wisconsin at 49th place in 2024. We currently sit in 50th at $0.14 per capita of public arts subsidy. Our nearby neighbors far outstrip us: Iowa at $0.32, Indiana at $0.53, Illinois at $0.85, Michigan at $1.18 and Minnesota at $7.62. 

Part of Imagine MKE’s focus over the next several years is going to be to try to move the needle on this ranking. But we can’t do this alone through our advocacy. Elected officials need to see that their constituents demand more support for the arts and creative industries. You can help by using your voice to applaud and show support for civic investment in the arts—like the forthcoming Vel Phillips Plaza initiative in Milwaukee, for example—and raising your voice to call for more arts projects and funding. An excellent way to do this is to sign up for our newsletter; you will then hear from us with arts news, stories, and events and will be included in future calls to action to promote increased investment in the arts.