The economic argument against tax founding for the arts

The question of to what degree the arts should be subsidized with tax founds seems to come up at regular intervals. Oftentimes after tax money has helped finance some especially controversial piece of art.

My own position is heavily influenced by economic theory. If the cost both in terms of money and labour put in to some artistic creation is lesser than the pleasure it generates for its audience, it's a worthy endeavor. If on the other hand the cost necessary for the creation of said object is greater then the value its audience places on it, it is wasteful and should not come in to existence. Since the money and labour put in to its creation could be put to better use. That is basically my criteria for separating 'good' art from 'bad' art, that is art that should be produced and art that should not be produced.

This is also the criteria which the marketplace uses when judging products. An artist who is able to attract an audience large enough to cover his expenses will be able to stay in the profession while those who's creations the public is unwilling to pay for will be unable to live off their artistic talents and forced to put their labour to better use.

Once the government starts funneling money in to the creation of art this will no longer hold true. Artists who would do fit my criteria will no longer have to pass the test of the marketplace and will be able to stay in their current profession. Leading to the creation of art which costs exceed its benefits.

More troubling it will also lead to art which would fit my criteria of 'good' art not being produced, art which would have come in to existence if it wasn't for government involvement. Since people have a limited apatite for art, all artists are de facto competitors for the attention of the public. Tax subsidies will enable government favored art to be offered at a lower price or even for free. Making it very hard for unsubsidized art to compete, unless it is far superior to the government backed art. This disruption to the market mechanism will lead to artists who previously would have been able to live off their work be forced out of the profession, depriving the public of worthy art.