OK, so the numbers are in and, as reported today in the Shreveport Times, in 2007 Louisiana invested $100,000,000 in film (after recouping $14m in taxes) on $429,000,000 of film spending. Of course verifying these numbers, particularly the spending by film companies, is a fuzzy math situation in which we remain dependent upon the film companies themselves to report their spending, so I have my doubts as to the accuracy.
Can you imagine that if you were an investor in the film industry, say in a film fund, how much of a long term return your money might be getting? You’d be getting checks for the rest of your life and that of your heirs if you had spent $100 million in a film investment vehicle that spread your investments around the industry. But what does Louisiana get? One time, poorly validated “spending” by these companies that results in short-term jobs averaging $32,000. But we look good on camera!
If this is such a good investment, why don’t we do it for music? In fact, why don’t we do it for every business in Louisiana. If the state can directly spend a dollar and get back four, why not spend on restaurants, grocery stores, construction companies, or any business? Because it defies the laws of physics and economics. You can’t create a perpetual motion machine and you can’t use public money to create perpetual economic engines. For the public to benefit, any expenditure needs to produce more in tax revenues than it spends. Just as too many calories make you fat, too much spending makes you broke. No matter how you extend the numbers to “secondary spending” you cannot ignore the fact that more money is being taken from public coffers than is being replenished.
I’ve said it before and I’ll say it again: where’s Louisiana’s share? If individuals invested this much money in the film business, they’d be getting a a piece of the action, a return on investment. Why is this not possible for public investment?
Music is our true asset. Though we welcome Hollywood and the movie industry, it is not one of Louisiana’s naturally occurring assets. Music is our calling card to the hearts, minds and wallets of the world. Yet we continue to allow it to flounder, leaderless, budget-less and without accountability for what little is being done. The press and public remain silent about the ongoing tragedy that is the Louisiana Music Commission.
Here’s the kind of readily available information that used to be produced by the LMC and which was publicly available on the web until 2006 when the years of undermining by a small, avaricious group empowered by soon-to-be-jailed former Louisiana Economic Development (LED) Entertainment director Mark Smith and other cohorts finally prevailed in destroying the LMC:
In fact, let me state this: former LED secretaries Don Hutchinson and Mike Olivier, along with Gov. Kathleen Blanco and the aforementioned Mark Smith were to music what the US Army Corps of Engineers was to flood protection in New Orleans in 2005–a massive disaster with ongoing consequences that will affect future generations.
Of course, I could be wrong. In fact, I hope I am. Someone, please convince me that I’m wrong about all this and that Louisiana is better off because of these things. I’m a reasonable person.