EconomicsWorkshop.ORG points to evidence that post-WWII film funding in Australia was directly influenced by Keynesian economic theory.

It asks:

If Keynesian economics “proved” that government spending boosts the economy, was the argument made (at the time) that film funding therefore kills two birds with one stone?

i.e. That (government funding of film-making) … improves film production and on top of that makes Australia richer?

It’s also interesting that:

  • Providing tax breaks for film production seem to rest on the argument that lowering the tax burden of producers is an economic plus; it makes them more likely to embark on ventures and more likely to profit from their ventures and less likely to fail …
  • Yet taxing citizens — and, by the previous argument, thereby reducing the citizens’ ability to be productive — in order to pay for film grants, results in increased “economic activity” for Australia as the grant money is spent.

The “tax breaks” argument seems to contradict the Keynesian “stimulus spending” argument.