following the 2007 strike that estimated the loss of 37,700 jobs. The number now is much higher.
The trickle-down effect could touch every facet of the Southern California economy, including the housing market. If people stop buying houses, rents increase; this is especially concerning as consumers are already dealing with high inflation and rising interest rates. Earle warns that it’s essential to put these estimates into perspective. “Even if the actual dollar losses are closer to the low end of those estimates than the higher end , they are coming at a time when the entertainment industry is still recovering from the pandemic and amid a major restructuring. Film revenue hit an all-time high in 2007, which undoubtedly took some of the sting off of that year’s strike impact.
Martin Mulyadi, a Ph.D. and accounting professor at Shenandoah University, says the direct costs could be much higher. He refers to the last writers’ strike as causing “a substantial blow to California's economy,” equating to $21 million per day. “Adjusting for inflation and factoring in the industry's growth, we could now see daily losses north of $25 million. Therefore, using this number, direct costs alone could accumulate to a minimum of $175 million per week.