Crony Capitalism Is The Norm In A French Film Industry Shielded From Free Markets

Sylvain Charat writes an article in Forbes about the French film industry, and how cronyism has caused it to be unsuccessful:

French government agencies are funding the arts, culture, and the movie industry through the National Center of Cinematography and the Moving Image (or CNC). As of February 2012, its liquid assets amounted to $1.3 billion. Through its 46 committees, the CNC is distributing money to movie producers, filmmakers, and actors. Thomas Langmann, who produced “The Artist,” provided some insight into the the CNC’s decision-making process: “it is an agency based on cronyism and it gives money to movies which, without it, would never have had a chance to be produced.”

This should be a warning to the American film industry, which seems happy to accept more and more state and federal tax incentives.