One of the longest standing shibboleths of Canadian public policy is that
popular culture industries in Canada must be financially supported and protected
by government if those industries are to survive. Moreover, the survival,
if not the growth, of those industries—the “entertainment” industries—
is essential to maintaining what supporters identify as Canada’s “national
identity”. From this point of view, government support and protection of
Canada’s entertainment industries can be seen as contributing to the survival
of Canada as a sovereign nation or, at least, to the promotion of a more civil
and cohesive Canadian society. A related argument for government intervention
is that it is “justified” by the economic contributions that the entertainment
industries make to Canada.
The broad objective of this study is to assess the main arguments for
direct and indirect government support for the entertainment industries
in Canada. While the focus of the analysis is on Canada, the main theoretical
arguments could apply to most small, open economies. The assessment
includes identifying and evaluating the relevant arguments for and against
government support, as well as an evaluation of the admittedly limited evidence
bearing upon those arguments.
The study comes to two main conclusions. One is that specific and