Economic Impact Of Writers' Strike Could Reach State Budget

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(Sacramento, CA)
Wednesday, November 7, 2007

In addition to the writers, the actors and the studios, a chain of businesses ranging from laundry service to film labs may feel the pinch as more shows stop filming.  Professor of Entertainment Business at USC S. Mark Young says up to 500-thousand people work in professions related to the entertainment industry nationwide – most of them in L.A.  And he says the strike could have a statewide – and national – impact:

“It affects productivity numbers, it affects income tax numbers, you know, all the indicators that economists use to gauge the health of an economy are going to be severely negatively affected by this strike.”

The state budget is already expected to be more than six billion dollars in the red next year.  A department of finance spokesman says the state will be taking the strike into account as it adjusts its economic forecast.