Beyond the bubbles: Creative New York in boom, bust and the long run

Both production-centered and more consumption-oriented theorists have speculated that in the wake of the 2008 financial crash, the creative industries will replace finance as an economic driver in major cities. One advantage of the productionist account is that it is inclined to analyze a wider range of social and institutional factors. This paper assesses the consequences of the crash for cultural and creative industries (CCIs) in New York City by drawing on the productionist approach and extending its consideration of the context of creativity to include speculative cycles and policy responses. The paper finds that while the CCI have taken an increasing role in the New York economy in the long term, they have been more vulnerable than the rest of the economy in the immediate aftermath of the crash. It also shows the importance of context in good as well as bad times. Those CCI that were most directly linked to particular episodes of financial speculation had the most explosive rises during boom and the most dramatic falls when the boom ended. In addition, specific industrial conditions (e.g., digitalization, tourism) can constrain growth in a CCI segment during a boom, or conversely, provide a boost even after the boom ends. Regarding policy responses, the paper finds that federal interventions buffered New York’s economy temporarily while the city has experimented with more active support of some CCI, namely media and fashion. This suggests that the post-crash fate of New York’s CCI is not yet settled.

► We examine the consequences of the 2008 financial crash on New York’s cultural and creative industries (CCIs). ► The CCI have become an increasingly important part of the economy. ► The CCI have been more vulnerable to the crash than other sectors. ► Federal policy temporarily buffered the New York economy. ► New York now is experimenting with policies to support some CCI.