All graffiti is street art, but not all street art is graffiti. It's one of those things that can be expressed better with a Venn diagram.
Street art is usually done with paint, or in the form of sculpted forms, other types include manipulation of common things that are already on a certain street. Street art is used to more effectively use public space. If a wall is empty then why not fill it up with art that everyone can enjoy.
Many cities around the world are taking on an initiative on order to promote public art. Cities like Madrid and London are trailblazing this movement in order to promote their cities with cheap tourist attractions and things that their citizens can enjoy for free.
The United States however falls behind when it comes to these things, besides a few murals here and there, not much initiative have been given to this movement.
It provides a nice cultural feel to any city and creates jobs for artists. It is highly beneficial to any public space. Many artists such as Banksy take street art and make a name from it.
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