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I don't see the reason both can't be done. Historically, prosperous societies produce more art. We may not be producing as much art in classicly prestigious formats like paintings, pottery, etc. But one look at the entertainment industry seems to refute the idea that art needs to be sponsored. I simply don't see why we give this significance to certain forms of art as if they fill a societal hole that no other format could. Your example of comedy was perfect because the manifestation and growth of standup comedy is a good example of how new arts can come into being without needing some sort of state sponsored intervention.