The artists, Christo and his wife Jeanne-Claude, paid for the installation themselves. They've done other works similar to this, like wrapping the Reichstag in Berlin and the Pont Neuf in Paris in fabric.
I think it's rather silly but I think Christo has made a good point in various interviews: this is art for art's sake, nothing more. Don't expect to get any deeper meaning out of the Gates--there is none.
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If I am not better, at least I am different. --Jean-Jacques Rousseau
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