As local newspapers shrink or disappear, opportunities increase for politicians and public employees to reach into the cookie jar and help themselves. After all, one of journalism’s most important functions is to act as a watchdog on government. As far back as 2009, the internet scholar Clay Shirky said that he expected to see an explosion of “casual endemic corruption” as more and more small papers shut down.
But how to quantify that? According to a new study, the lack of oversight can be measured by a rise in the cost of government in communities that lose their newspapers. Kriston Capps writes in CityLab that researchers at the University of Notre Dame and the University of Illinois at Chicago found that a municipality’s borrowing costs increase in statistically significant ways in “news deserts” — that is, in places where there is no longer a news outlet that reports on important local issues.