Veteran comedian and actor David Spade is saying out loud what many in the entertainment industry have been whispering for years: Hollywood isn’t just struggling—it’s in serious decline.
Speaking on his podcast *Fly on the Wall*, which he co-hosts with fellow *Saturday Night Live* alum Dana Carvey, Spade took direct aim at California’s Democrat leadership, blaming them for what he described as the slow collapse of the once-dominant entertainment capital.
“The Hollywood industry is dying,” Spade said bluntly, reflecting on his decades-long career in Los Angeles. Recalling the golden days of network television, he painted a stark contrast between then and now. “I was on the lot at CBS Radford… they were doing *Seinfeld*… it was the greatest lot,” he said, before delivering the punchline with a serious edge: “Now it’s bankrupt. Terrifying in LA. Thanks, [Mayor] Karen Bass. Thanks, [Gov.] Gavin Newsom.”
Carvey didn’t disagree. In fact, he doubled down, pointing to a steep drop in film and television production as evidence that the system is faltering. According to him, the solution is obvious—but politically inconvenient: cut costs, negotiate with unions, and offer competitive tax incentives.
“The amount of productions is dying,” Carvey said. “They have to do something… subsidize the industry, give tax breaks to compete with places like Romania.”
That’s a reality many studios have already embraced. Faced with high taxes, heavy regulation, and rising labor costs in California, production companies are increasingly taking their projects elsewhere—whether it’s to lower-tax U.S. states or overseas locations offering generous incentives.
City Hall, however, is pushing back on the criticism.
A spokesperson for Los Angeles Mayor Karen Bass defended the administration’s record, pointing to expanded tax credit programs and efforts to make filming more accessible across the city. The mayor’s office highlighted new studio space, reduced filming fees, and reopened locations as proof that leadership is committed to revitalizing the industry.
But for many insiders, those measures haven’t been enough to stop the bleeding.
Spade and Carvey are far from alone in sounding the alarm. Hollywood heavyweights like Jon Voight, Sylvester Stallone, and Mel Gibson have also raised concerns—and are now working directly with Donald Trump to bring jobs back to American soil.
In early 2025, Trump tapped the trio as special ambassadors tasked with restoring Hollywood to its former glory. The goal: reverse the outsourcing trend and rebuild a domestic industry that once defined American culture.
Voight, in particular, has been outspoken about the need for bold action. In a recent interview, he backed Trump’s proposed 100% tariff on films produced overseas, arguing that drastic steps are needed to stop the exodus.
“We can’t let it go down the drain like Detroit,” Voight warned, invoking the collapse of another once-iconic American industry.
For conservatives, the decline of Hollywood serves as a cautionary tale—what happens when high taxes, overregulation, and political priorities collide with economic reality. While California leaders continue to defend their policies, the market appears to be delivering its own verdict.
And as more productions pack up and leave, the question becomes harder to ignore: can Hollywood survive where it is—or will America’s entertainment capital need to reinvent itself somewhere else?
