The economic impact of the writer’s strike

A UCLA economist is throwing cold water on estimates that the writers strike will have a $1 billion economic impact if it lasts as long as the WGA's five-month work stoppage in 1988.

"As it turns out, a close examination of the economic dynamics of the 2007 WGA strike suggests a much more modest and transitory impact on the Los Angeles economy," said Jerry Nickelsburg of the UCLA Anderson Forecast. "The impact, even if the strike runs as long as the record 1988 strike, will be about one-third or less of the currently accepted $1 billion estimate."

Nickelsburg issued his report Wednesday as the strike entered its 24th day with negotiators meeting for the third consecutive day amid a news blackout.

The Los Angeles Economic Development Corp. recently issued the estimate of the strike resulting in $1 billion in damages to the local economy. But Nickelsburg noted that such initial forecasts may be out of whack since strikes are predictable events and those affected try to mitigate their impacts through such steps as stockpiling.

(Source: Variety)

Film Business, Hollywood

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