We have both so I wouldn't say government-backed arts, culture, and broadcasting has held back Hollywood and celebrity culture. At this point, they're both a corrupting and manipulating influence.
In the current system, the corruptors only need "manage" a few points, especially after the consolidation of media. So a decentralized smaller or independent media is a better model. It's betting these large media companies without help and in some cases roadblocks.
To art - I don't think people are opposed to publicly funded art. But if you do some research the cost of some of these pieces and the process in which the artist has been chosen, will raise an eyebrow of even a semi-curious person.
Culture - it's dangerous for a government to decide what our culture is. The people in society decide on that by their actions and interests.
It would be a good discussion on how a government could fund these in a more agnostic way. One idea with media - a county providing the infrastructure for independent media. So a "youtube" that's ready to handle subscriptions so people can pay. Or even video editing software.
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