Hollywood writers and actors have been on strike for over a week, and economists are warning that the shutdown could have significant economic consequences for the US. The previous writers' strike in 2007 resulted in a loss of $2 billion for Los Angeles alone. This time, forecasters predict that the impact could be even greater.
The shutdown is expected to hit Los Angeles the hardest, as it is the entertainment capital and home to many film and TV productions. The 2007 strike had a ripple effect on various industries, such as restaurants, catering companies, trucking companies, welders, construction workers, dry cleaners, and more. The current impasse is estimated to cause around $4 billion worth of economic damage, according to the Milken Institute's chief global strategist.
The effects of the strike may also extend beyond Los Angeles. In recent years, there has been a trend of filming outside of LA, and cities like New York, Albuquerque, Atlanta, and Pittsburgh could also feel the impact. Major films alone contribute approximately $250,000 to the US economy each day of production, highlighting the economic significance of the entertainment industry.
The strike is a result of the Writers Guild of America and the actors' union SAG-AFTRA jointly taking action over their income from streaming platforms and concerns about the potential impact of AI on their profession. Notable figures such as Jason Sudeikis, Susan Sarandon, and Olivia Wilde have joined the picket line in support.
Already, the strikes have caused delays in the production of popular shows like "The Last of Us," "Euphoria," and "The White Lotus." As the strike continues, the economic consequences are expected to grow, potentially costing the US billions of dollars.
In conclusion, the ongoing strike in Hollywood has the potential to greatly affect the US economy, with Los Angeles being hit the hardest. The impact could extend beyond the entertainment industry, affecting various businesses and industries that rely on film and TV productions. The strike is a result of concerns over income from streaming platforms and the potential effects of AI on the profession. As the strike continues, the economic consequences are likely to worsen.