The ongoing protests by actors and screenwriters in Hollywood may have a significant impact on the economy. According to economists, losses related to the downtime in the production of films and series may cost up to USD 5 billion.
The ongoing double strike of actors and writers in Hollywood stalled last week after the Writers Guild of America (WGA) rejected a counter-proposal from the studios, lamenting that it did not come close to satisfying the screenwriters’ demands. Industry observers claim that the “double hit” suspending work on film production has already had serious economic consequences
Costs of strikes
Kevin Klowden, chief global strategist at the Milken Institute, estimated that the current strikes will soon cost the domestic economy more than $5 billion, revising upwards his previous estimate of $4 billion. He explained that the work stoppage would impact businesses other than manufacturing, including restaurants, caterers, transportation agencies and dry cleaners, among others.
“The most important thing we really consider is lost wages,” Klowden said in an interview on Yahoo Finance Live on Tuesday. He emphasized that not only will industries in California be affected, but also industries in New York, Atlanta, Albuquerque, Pittsburgh and other locations.
Strikes in Hollywood
The screenwriters’ strike has been going on in Hollywood for months. In July, actors joined them. The protests are aimed primarily at the largest studios and streaming services such as Netflix.
According to trade unionists, wages are too low, and the wages that creators receive for the results of their work published on websites are often not enough to support them. Actors also demand protection against the use of their likenesses without permission as part of the expanded capabilities of artificial intelligence.