Wrt. the Communist Manifesto: it's precisely the bourgeoisie and the church who are responsible for the greatest art, and its development. As you say, the workers love kitsch.
And what do you think artists are going to do when nobody pays them? Something that does pay the bills, obviously. It really is a danger to the continuation of the arts.
And let's be honest: communist art is generally rather poor. The state, or the avant-garde of the proletariat for that matter, does not have good taste, but does tend to towards nepotism.
It's not making, creating. It's consuming.
Wrt. the Communist Manifesto: it's precisely the bourgeoisie and the church who are responsible for the greatest art, and its development. As you say, the workers love kitsch.