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Writers' Strike Said to Threaten State, Even National Economy

Some economists are warning the writer's strike could affect much more than Los Angeles. They say if it lasts for months, it could take a bite out of the state's revenues. From Sacramento, Marianne Ru

Writers' Strike Said to Threaten State, Even National Economy

Some economists are warning the writer's strike could affect much more than Los Angeles. They say if it lasts for months, it could take a bite out of the state's revenues. From Sacramento, Marianne Russ explains.

In addition to the writers, the actors and the studios, a chain of businesses ranging from laundry service to film labs may feel the pinch as more shows stop filming.

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Professor of Entertainment Business at USC S. Mark Young says up to 500,000 people work in professions related to the entertainment industry nationwide -- most of them in L.A.

And he says the strike could have a statewide, and national, impact:

Young : It affects productivity numbers, it affects income tax numbers, you know, all the indicators that economists use to gauge the health of an economy are going to be severely negatively-effected by this strike.

The state budget is already expected to be more than $6 billion in the red next year. A department of finance spokesman says the state will be taking the strike into account as it adjusts its economic forecast.