$1.5 Billion Lost Due to Writers' Strike
Jarrett Martineau | January 23, 2008 at 09:07 amby
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Opinions vary about the extent of the economic impact of the strike but, with a hefty recession looming in the American near-future, further losses will hit those affected even harder.
“The writers’ strike is having a much larger economic impact on L.A. than its direct impact on writers and studios,” said former Secretary of Labor Robert Reich. “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.”
Opinions vary as to whether the 11-week-old writers’ strike has had a seismic or modest effect on the Los Angeles economy. Jack Kyser, chief economist for the Los Angeles Economic Development Corp., estimates that to date the strike has resulted in a $1.5 billion hit to the local economy. But a forecast put out by 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.