The crisis in Hollywood is not only affecting the entertainment industry, but could also cause significant economic losses in California. For this reason, Governor Gavin Newsom offered to mediate the double strike by screenwriters and actors, which paralyzed one of the most important economic assets of the state.
According to the Democratic politician's office, Newsom spoke with studio executives, actors and screenwriters and offered his help in negotiating a deal. However, the AP revealed, none of the parties involved appear to be interested in the politician's help.
That, reported the governor's senior communications advisor, Anthony York, did not stop Newson from continuing to offer to mediate the dispute as he is "deeply concerned" about the impact the industry shutdown may have on the state's economy:
It’s clear that the sides are still far apart, but he is deeply concerned about the impact a prolonged strike can have on the regional and state economy,
California needs a Hollywood revival
York noted that "thousands of jobs depend directly or indirectly on Hollywood getting back to work." These include carpenters, caterers, hairdressers, make-up artists, wardrobe managers, accountants, prop artists, set designers, transportation workers, production assistants and personnel. These jobs all depend on whether production is able to go underway.
California is no stranger to the consequences of the Hollywood shutdown. The last time the screenwriters initiated a 100-day walkout, in 2016, the state lost approximately $2.1 billion, and 37,700 people were laid off as a result of the strike, according to data provided by Forbes.
The impact, now, could be much greater since this time it is not only the writers but also the actors who joined the strike. In fact, University of California professor of economics Lee Ohanian told The New York Times that he believed about 20% of the local economy could be affected.
