As another believer that "socialism is a necessary evil that must be tightly controlled" funding of the arts falls in line with the social welfare that goes beyond "a hand up" to an entitlement and the even worse plague of corporate subsidies that have been historically found to be ineffective at achieving stated goals. I could see subsidizing some areas of critical national importance if, for odd market reasons, there was no private drive to support them. But, they would be few and far between. All waste of taxpayer dollars. The reality as I see it is:
1. Art has been self-sustaining since its beginnings. People either do it for love with little expectation for a return beyond personal satisfaction or they produce marketable art and earn a living. I have supported ,and my family supported, mainstream theater (I've seen Brenner in the King and I and Burton in Camelot as a child, more recently Wicked and The Producers, etc.). I supported a range of storefront theater and improv when I lived in Chicago, and continue to support local bands both at the door with a cover charge and by buying their CDs. Go see the local dinner theater from time to time, and even paid to enter the local art museum though it's not on the top of my interests list. Most of these, even the storefront theater, had little to no artificial support as pointed out in their fund raisers. But, that didn't stop them.
2. With the Internet, previously valid concerns about monolithic, all powerful corporate entities shutting out art have greatly decreased. It's still hard to be the next Brittney Spears -- but that's the commercial pop machine more than the free expression of art. Local bands can promote themselves far more effectively than before, from upcoming gigs to sample tracks to an international market for CDs through paypal, etc. Painters can exhibit their art, poets, writers, sculptors (to some extent), etc. Look at the Youtube piece posted earlier. These guys have something solid to show if the work to move into Hollywood, and Hollywood may actually find them through the Internet. There are still challenges in breaking trough, but I believe that even with the active resistance of the established corporate art powers that be in these fields the internet model will mature and crack open the hold on talent, exposure and money.
3. There is no objectivity in funding. Art is perhaps the most subjective endeavour we have. Whether you're talking individuals or "troupes" etc. I can only imagine that those writing the checks have the same elitist art bias they had 20 years ago. Like in Animal Farm, all art is equal, but some is more equal than others. I doubt you will see a check cut to fund the next Clive Cussler.
4. Local fundraisers and then charging at the door can cover the grants (I've seen it work), IF the community cares. Maybe the community would just rather watch American Idol? Funding the experimental dance troupe will not get Joe Six pack to expand his horizons, even by using his tax dollars. It will just subsidize the product for those already interested, who in many cases could pay more for a ticket or write an extra check if they actually were all that interested.
Again, art is an area where a few do it very well to the estimation of the paying public; good enough to earn a good to extravagant living in the process. That paying public could be one of 50 million teenaged girls buying the next bubble gum pop CD or some Manhattan swell buying a definitive piece from the latest Warhol. A great many do it less well, or at least less mainstream well, but enjoy it as a hobby or to get some beer money on the weekend. I can't see NEA grant money substantially changing either dynamic. I just don't see the need, and don't fundamentally believe that most receiving the money couldn't make it work with a little more hard work spent on promotion and marketing and networking. At least for the ones who stand any chance at making the broader scene.
Charon