Though the Great Depression (1929–1939) spurred New Deal reforms and bolstered labor rights, such sweeping, unified movements feel far removed from today’s fractured Hollywood. The industry has steadily eroded—culturally, economically, and geographically.

Production began shifting away from California in the 2010s as the state cut back film and television subsidies, while other states (like Georgia) and countries (such as Canada and New Zealand) stepped in with aggressive tax incentives and lower costs. Despite Governor Newsom’s recent efforts to expand California’s film tax credits to $750 million, it may be too little, too late. With studios fleeing and economic safety nets deteriorating, the classic Hollywood model—a unified, resilient creative engine—has effectively disappeared. Some now say Los Angeles is becoming the “next Detroit.”

Hollywood’s Union Crisis: A Tale of Two Classes

Ask anyone who’s lived in California long enough, and they’ll tell you: the Golden State is a land of haves and have-nots. Nowhere is this more visible than in the entertainment industry. The growing buzz of concern in neighborhoods with a concentration of industry professionals often reveals a different reality than what union leaders would like us to believe.

In my own informal survey, the more successful individuals tend to echo union leadership’s talking points. Meanwhile, average working actors and writers express far more skepticism—though only behind closed doors. Public dissent, after all, can be career suicide. Unity isn’t optional, it’s enforced.

The 2023 strikes by the Writers Guild of America (WGA) and the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) lasted 118 and 148 days, respectively—some of the most disruptive work stoppages since the COVID-19 shutdowns. Production halted, and those who dared to cross picket lines were publicly shamed (just ask Drew Barrymore, Bill Maher, or The Talk).

The primary battlefronts? Streaming residuals and artificial intelligence (AI). A-list actors feared being replaced by AI-generated digital doubles. Ironically, few showed the same concern when AI and automation began displacing visual effects (VFX) and CGI artists years earlier. As Ben Affleck bluntly put it, VFX artists aren’t seen as “real artists.”

Nearly a year after SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP) reached a deal, Affleck claimed AI was merely a “craftsman,” incapable of true creativity. Apparently, he and others consider themselves irreplaceable—hence their urgent fight to protect their roles. Yet when AI came for the rest of the industry, silence reigned.

Who Really Benefited from the Strikes?

The answer: not the average union member.

Many have been out of work for over a year, exhausted their savings, and are now scrambling for job leads. A popular phrase emerged in the aftermath: “Survive until 2025.” Yet with over half the year gone, and Los Angeles-based production still stagnant, it’s clear that old levels of work aren’t returning. Worse yet, many union members have now lost their health insurance due to insufficient qualifying work hours.

Where are union leaders like Fran Drescher now? Where are the A-list actors who reaped the benefits of prolonged negotiations? They aren’t paying the bills of out-of-work members. They already had what they needed. The contract fight simply secured what they wanted, at the expense of the rank and file.

Yes, writers are making less. They’re being asked to do more with fewer people, in less time, for less pay. VFX artists know that story all too well. Truthfully, it’s happening across many professions — except for fast-food workers in California, apparently. Hollywood creatives were hit hard because they refused to acknowledge the writing on the wall: AI was coming, and no one—not even actors—is immune.

The Bureaucracy No One Talks About

What most people don’t realize is that SAG-AFTRA is a bureaucracy—not unlike the corporate entities they claim to fight. This was on full display during the recent video game performers’ strike, when union leadership ended the nearly year-long action in a secretive and undemocratic manner.  The SAG-AFTRA video game agreement, ratified in July 2025, netted some AI protections, but was criticized for excluding the union’s rank-and-file members from the negotiation process.  

Critics say SAG-AFTRA delayed action for months, weakening workers’ leverage and isolating them from other labor battles. The leadership focused narrowly on issues involving AI without offering real protections or concessions for members. The final deal, agreed upon without a member vote, included minimal gains and left many issues unresolved.

This wasn’t an isolated incident. Throughout the 2023 strikes, similar frustrations emerged—especially around leadership’s priorities, the lack of transparency, and the disconnect between the elites at the top and the struggling creatives on the ground.

Global Flight and a Grim Future

Hollywood’s woes are not just internal—they’re global. Marvel Studios’ recent move from Georgia to the U.K. (starting with Fantastic Four: First Steps) slashed Georgia’s production spending by nearly 50%, leaving studios like Trilith eerily quiet.

British Columbia continues to thrive as “Hollywood North,” but even Canada is facing new competition from Europe, where studios chase lower costs and favorable regulations. New Zealand, for its part, is actively courting U.S. productions with expanded rebates and outreach.

Conclusion

Hollywood’s golden age is long gone. What remains is a divided, bureaucratic, and increasingly irrelevant industry—hemorrhaging jobs, chasing tax incentives overseas, and leaving its own workers to figure out how to survive while elites squabble over AI rights and streaming checks.

Once the capital of America’s entertainment industry, Los Angeles is now the cautionary tale of a city—and an industry—consumed by its own contradictions.