The Boston Globe keeps growing, announcing on Thursday that it’s adding a new section and newsletter on technology — an expansion made possible by two recent hires. It’s hard to think of a large regional paper other that the Globe that is actually building up rather than trying to stave off another round of cuts.
Yet labor strife at New England’s largest news organization seems to be getting worse. The Boston Newspaper Guild has targeted Globe Summit 2021 as a public relations opportunity in its nearly three-year-old quest for a new contract. Sens. Elizabeth Warren and Ed Markey have pulled out of the event in solidarity with the union, according to a Guild press release.
It takes two sides to come to an agreement, and I know that management has its issues with the way the Guild has conducted negotiations — just as the Guild has issues with what it describes as hardball tactics and unreasonable demands.
But it’s way past time for Globe owners John and Linda Henry to figure out a way to wrap this up to everyone’s satisfaction. There are just too many other good things happening for them to continue to let this drag the paper down.
Can government help solve the local news crisis? The notion sounds absurd, even dangerous. You get what you pay for, and if government officials are funneling money to media outlets, then it’s not unreasonable to expect that they’ll demand sticky-sweet favorable coverage in return.
Yet the situation is so dire that once-unthinkable ideas need to be on the table. Since 2004, some 2,100 newspapers have closed, leaving about 1,800 communities across the country bereft of coverage. About 30,000 newsroom jobs disappeared between 2008 and 2020. The consequences range from the potential for increased corruption to a decline in voter turnout for local elections.
Now federal legislation long in the making may finally be ready to move ahead. Believe it or not, the bill is bipartisan. It also manages to avoid the entangling alliances that would endanger journalistic independence. That’s because the Local Journalism Sustainability Act, introduced in the Senate last week and in the House a month earlier, relies on tax credits rather than direct government assistance.
“This clever, bipartisan bill would provide more help for local news than any time in about a century, yet it’s done in a very First-Amendment-friendly way,” writes Steven Waldman, the co-founder of the Rebuild Local News Coalition as well as the co-founder and president of Report for America. (Disclosure: Report for America, which places young reporters at news organizations around the country, is part of the GroundTruth Project, affiliated with GBH in Boston.)
So how would the bill work? Essentially, it would provide three tax credits that would expire after five years, giving media outlets some runway to move toward long-term sustainability. I am oversimplying, but here is the rough outline:
• News consumers would be able to write off $250 a year that they spend on subscriptions or on donations to nonprofit news organizations.
• News organizations would receive tax benefits for hiring or retaining journalists.
• Local small businesses would receive tax credits for advertising in local newspapers and news websites and on television and radio stations.
The benefits would be restricted to small news organizations, defined as those with 750 employees or fewer in the House bill or fewer than 1,000 in the Senate bill.
At a time when Congress seems incapable of doing anything, some version of the bill appears to stand a good chance of passing. After all, elected officials, regardless of party or ideology, like to be covered by the hometown press, and the bill would help ensure that there will continue to bea press. As of Tuesday, there were 32 co-sponsors in the House — 25 Democrats and 7 Republicans. Because the Senate version was just introduced, the only co-sponsors so far are the three Democrats who introduced it — Maria Cantwell of Washington state, Ron Wyden of Oregon and Mark Kelly of Arizona.
Among the all-Democratic Massachusetts delegation, Sen. Ed Markey will support the bill and has asked to be a co-sponsor, says Markey spokeswoman Giselle Barry. Sen. Elizabeth Warren is studying the legislation and has not yet stated a position, according to Warren spokeswoman Nora Keefe. On the House side, Reps. Jim McGovern and Seth Moulton are co-sponsors, and Mary Rose Tarpey, a spokeswoman for Rep. Stephen Lynch, says that Lynch will also be a co-sponsor, as he was during the previous session.
Government assistance for news is not new. During the early days of the republic, postal subsidies were the foundation upon which the distribution system for newspapers and magazines was built. Today, nonprofit news organizations ranging from hyperlocal websites to public broadcasters benefit from tax incentives that allow their donors to write off the money they give and that exempts the media outlets themselves from having to pay taxes.
Given the catastrophic state in which journalism finds itself, some activists and scholars are calling for more direct funding of news. For instance, Victor Pickard, a scholar at Penn’s Annenberg School, advocates much higher government spending on public media. Longtime media reformer Robert McChesney has talked about giving as much as $35 billion over five years to elected citizens councils that would fund local news and underwrite startups.
But there are dangers in such approaches. In Pennsylvania, for instance, the Republican-dominated legislature cut off $750,000 to the state’s seven public radio and television stations after one of them, WITF Radio of Harrisburg, began calling out any elected official who continued to challenge the validity of President Joe Biden’s electoral victory.
Philadelphia Inquirer columnist Will Bunch, while conceding there was no evidence of a direct cause-and-effect over what was admittedly a small amount of funding, wrote in his weekly newsletter that the action “shows the enormous peril of government dollars for journalism, even as a partial solution. In an era when a growing number of elected officials are waging war on the truth, from election results to coronavirus vaccines, would journalists be forced to choose between an important story or their survival?”
By contrast, the federal bill under consideration avoids those problems by putting as much distance as possible between elected officials and the aid that news organizations would receive.
My one reservation about the bill is that chain-owned newspapers would benefit along with independent projects. That said, the Rebuild Local News Coalition, whose members represent more than 3,000 newsrooms, includes some of the most public-spirited organizations that are working on these problems, such as LION (Local Independent Online News) Publishers, the Lenfest Institute and the Solutions Journalism Network.
Perhaps the problem of chain ownership could be addressed, as Waldman proposes, by giving tax breaks to the likes of Gannett and Alden Global Capital if they sell their papers to local nonprofits and public benefit corporations. I would also suggest tax penalties if they decline to do so. Corporate ownership is killing local news just as surely as technological change and the aftermath of the COVID pandemic, and we need to get the publicly traded corporations and hedge funds out.
At a time when political and cultural polarization at the national level is tearing us apart, local news can help encourage the kind of civic engagement we need to rebuild community. But that can’t happen if the newspaper has gone out of business or is on life support, and if nothing else has come along to take its place.
Fundamentally, what’s at issue is that the advertising model that paid for journalism until recent years has collapsed. Publishers need to find a way forward, whether through reader revenue, nonprofit funding, paid events or even starting a bar and wedding venue next to the newsroom, as The Big Bend Sentinel in West Texas did.
The Local Journalism Sustainability Act will help sustain local news while we search for a workable model that doesn’t rely on advertising. After 15 years of declining revenues and dying newspapers, it may be our last chance to get it right.
Sen. Elizabeth Warren has posted a video in support of the Boston Newspaper Guild, which is involved in protracted contract talks with The Boston Globe. No word on what happened to the Mark Ruffalo video, which was taken down not long after it was published.
The Nieman Journalism Lab’s Sarah Scire last week spoke with The New York Times’ recently named opinion editor, Kathleen Kingsbury. It’s an interesting conversation that defies easy summary, but I was struck that Kingsbury now says she and the Times “ended up confusing people” when they endorsed two presidential candidates, Sens. Elizabeth Warren and Amy Klobuchar, in last year’s Democratic primaries.
More than anything, I think Kingsbury represents steady leadership after the tumultuous James Bennet era, often caricatured as coming to an abrupt end over the infamous op-ed by Sen. Tom Cotton but that was in fact — as Scire points out — punctuated by numerous lapses in judgment. Kingsbury demonstrated that steadiness last week when she killed a piece by columnist Bret Stephens. If the commentary, an n-word-filled defense of Don McNeil, had run, critics would be wondering if Kingsbury were up to the position. (Stephens’ point, such as it was, is that it ought to be considered acceptable to quote others using the n-word as long as there was no racist intent.)
I was also interested to see that Kingsbury and publisher A.G. Sulzberger “tend to talk daily.” The rule of thumb for good publishers is that they should stay out of the newsroom but that involvement in the opinion section is appropriate. John and Linda Henry are certainly involved in The Boston Globe’s opinion operation. On the other hand, Washington Post owner Jeff Bezos is known to be as hands-off with opinion as he is with news coverage. Sulzberger is entitled to have his say, but maybe he ought to back off and let Kingsbury do her job.
I had a long interview with Kingsbury several years ago, when she was the Globe’s managing editor for digital. She struck me then as capable and creative. The Times’ gain was definitely the Globe’s loss.
Correction: Kingsbury objected to my original characterization that she had said the Times made a mistake by not endorsing just one of the Democratic candidates. “I still believe choosing the two candidates was the right thing to do,” she says. I’ve updated this post to reflect that.
@dankennedy_nu That is not what I said. I said the choice of two candidates confused people, not that we should have endorsed one. Which is pretty obvious — given that we traditionally endorse one.
Massachusetts Republican gadfly Shiva Ayyadurai has been banned from Twitter, most likely for claiming that he’d lost his most recent race for the U.S. Senate only because Secretary of State Bill Galvin’s office destroyed a million electronic ballots. Adam Gaffin of Universal Hub has the details.
In 2018, I gave the City of Cambridge a GBH News New England Muzzle Award for ordering Ayyadurai to dismantle an wildly offensive sign on his company’s Cambridge property that criticized Democratic Sen. Elizabeth Warren. City officials told him that the sign, which read “Only a REAL INDIAN Can Defeat the Fake Indian,” violated the city’s building code.
Ayyadurai threatened to sue, which led the city to back off.
I’m not going to try to defend The New York Times’ decision to punt and endorse two Democratic candidates for president.
In watching the endorsement process play out Sunday night on “The Weekly,” it seemed to me that the editorial board members’ main goal was to stop the frontrunner, Joe Biden, whom they see as too old and too vague. By endorsing both Elizabeth Warren and Amy Klobuchar, the Times diluted the boost it might have given to Warren, who is — along with Bernie Sanders — the strongest challenger to Biden.
There will be those dissatisfied that this page is not throwing its weight behind a single candidate, favoring centrists or progressives. But it’s a fight the party itself has been itching to have since Mrs. Clinton’s defeat in 2016, and one that should be played out in the public arena and in the privacy of the voting booth. That’s the very purpose of primaries, to test-market strategies and ideas that can galvanize and inspire the country.
Essentially the Times sees itself as endorsing candidates in two separate Democratic primaries — the progressive primary and the moderate primary. Seen in this light, the Times is hoping ahead of the Feb. 3 Iowa caucuses to give a boost to Warren against Sanders and to Klobuchar against Biden and Pete Buttigieg. That makes some sense, though I still think a single endorsement would have been better. Still, if the two-primaries argument had been stated more explicitly, in the lead, the Times could have spared itself some of the head-scratching and mockery it’s being subjected to today.
As for “The Weekly,” I found the hour fascinating, with the participants — led by deputy editorial-page editor Katie Kingsbury, subbing for James Bennet, whose brother Michael is (believe it or not) a presidential candidate — coming across as thoughtful and serious. I saw some Twitter chatter suggesting that the participants seemed elitist and out of touch, but that strikes me as an inevitable consequence of the the setting and the process. How could it be otherwise?
And let’s give the Times credit for dragging the traditionally secretive endorsement process out into the open, including transcripts of the interviews with each of the candidates.
Let’s just hope the Times restricts itself to one endorsement this fall.
Elizabeth Warren rose above her dispute with Bernie Sanders over who said what and offered a powerful argument about gender and politics at Tuesday’s Democratic presidential debate. But it might be too late to matter.
That, at least, appears to be the consensus in my quick scan of political punditry following the final candidates’ forum before the Iowa caucuses on Feb. 3.
The debate probably didn’t shift many votes. As Nate Silver put it at FiveThirtyEight, “it wasn’t a game-changer,” saying that even though Warren won on substance, Joe Biden may have been the overall winner because his front-runner status wasn’t challenged. But for Warren fans who’ve been disheartened by her slide in the polls since last fall, Tuesday was a good moment.
The question of who was telling the truth regarding Warren’s claim that Sanders had told her a woman couldn’t be elected president was left unresolved, and in a particularly unsatisfying manner — which I’ll get to in a bit. First, though, here’s how Warren moved past the he-said/she-said issue.
“So can a woman beat Donald Trump?” asked Warren (transcript). “Look at the men on this stage. Collectively, they have lost 10 elections. The only people on this stage who have won every single election that they’ve been in are the women. The only person on this stage who has beaten an incumbent Republican anytime in the past 30 years is me, and here’s what I know. The real danger that we face as Democrats is picking a candidate who can’t pull our party together or someone who takes for granted big parts of the Democratic constituency.”
Amy Klobuchar chimed in effectively, saying that “every single person that I have beaten, my Republican opponents, have gotten out of politics for good” — although she did have a hold-your-breath moment when she couldn’t summon up the name of Kansas Gov. Laura Kelly.
Warren, by citing her gender as a political strength, Emma Green wrote at The Atlantic, “managed to move the conversation to a new level — past any disagreement with Sanders, past a referendum on what happened to Clinton in 2016, past a debate over how sexist America really is.”
Eugene Robinson of The Washington Post called it “the best line of the night.” Frank Bruni of The New York Times said that Warren and Klobuchar “turned the stubborn, sexist notion that their presence and presidential ambitions were exotic on its head, citing yardsticks by which they were demonstrably superior to their male rivals.” And James Pindell of The Boston Globe pulled up the significant fact that 57% of Iowa caucus-goers are expected to be women.
Now, about the actual exchange between Warren and Sanders, who are vying to emerge as the leading progressive in the race. There is a school of thought, especially among those who support one or the other, that the matter of whether Sanders said what Warren claims is of little account, and that we should move on.
Is it the most pressing issue in the race? Of course not. But Sanders and Warren are each accusing the other of lying, and that’s not nothing. Yet moderator Abby Phillip of CNN bizarrely cut short their exchange and endorsed the idea that it’s Sanders who’s lying and Warren who’s telling the truth.
“So Senator Sanders, I do want to be clear here,” Phillip said after Sanders’ initial denial. “You’re saying that you never told Senator Warren that a woman could not win the election?”
Sanders: “That is correct.”
Phillip: “Senator Warren, what did you think when Senator Sanders told you a woman could not win the election?”
What? I honestly couldn’t tell whether Phillip’s question to Warren was her snarky way of labeling Sanders as a liar or if she was just robotically reading the script. Either way, it was the low moment of the debate. “It was tantamount to calling Sanders a liar,” wrote Tom Jones of Poynter Online. As Jim Geraghty put it at National Review: “The right question in that situation was, ‘Senator Warren, did Senator Sanders just lie?’”
At The Bulwark, Jonathan V. Last saw Phillip’s performance as part of the media’s determination to give Warren a pass on what he argues is her lack of honesty about matters such as her claimed Native American heritage and whether she was fired from a teaching job because she was pregnant.
“CNN has two candidates calling each other plain liars about a factual matter on a story that CNN broke. Yet they didn’t follow up by pressing the candidates to get to the bottom of who was lying on their stage,” Last wrote, adding: “Are you sensing a pattern? It sure looks as if Warren has a habit of making up claims of victimhood to advance her interests. And no debate moderator has pushed her on it.”
Debate moderators have a tough job, of course, but I thought the Tuesday crew fell short in a number of ways. CNN’s Wolf Blitzer started off by essentially demanding to know whether the candidates were tough enough to be commander-in-chief given that the United States and Iran are “on the brink of war.” Blitzer offered no acknowledgment that the crisis was precipitated by President Trump’s reckless actions, backed up by apparently false claims. The question really should have been about judgment rather than toughness — which, in fact, is how the candidates answered it.
Moreover, we didn’t hear a peep from the moderators about the trillions of dollars that have been spent on the endless wars the U.S. has been fighting since 2001 (or 1992, if you prefer), or the cost of the tax cut for the wealthy ($2.3 trillion over 10 years, according to Politico) that still stands as Trump’s sole legislative accomplishment.
Yet when it came time to ask Sanders about the cost of his Medicare for All plan, Phillip didn’t hesitate to put it this way: “How would you keep your plans from bankrupting the country?”
The third moderator, 31-year-old Brianne Pfannenstiel of the Des Moines Register, did a respectable job. Maybe in the future all debate moderators should come from local news organizations.
Three weeks from now, some ballots are finally going to be cast. The contest feels thoroughly nationalized, and the debates are a large part of the reason. Will organizational strength matter? It might, especially in Iowa, where caucus-goers are required to sit for hours and where second and third choices sometimes matter. And then it’s on to New Hampshire.
This is no way to pick a president. For now, though, it’s all we’ve got.
Amy Klobuchar was having her moment. The Minnesota senator, an also-ran since entering the presidential race in the middle of a snowstorm last February, turned in her strongest debate performance Tuesday night. And now she was pressing her advantage, appearing on all three cable news outlets to repeat her message that Elizabeth Warren isn’t the only candidate with big ideas. Moderates can have them, too.
“There’s not just one idea out there. There are many,” she said on CNN. Klobuchar offered some pointed criticism of Warren as the night wore on, telling MSNBC’s Chris Hayes, “Her way or no way is how it feels every single time,” and Fox News’ Shannon Bream, “Your idea is not the only idea.”
Following Tuesday’s marathon Democratic debate, I spent an hour — 20 minutes each — with CNN, MSNBC and Fox News to get a feel for the instant take on what had just transpired. What I heard may or may not shape the conversation about the campaign in the days ahead. But the consensus was that Klobuchar and Pete Buttigieg had a good night — and that, given Joe Biden’s continued inability to take charge of the race, one of them may emerge as the moderate challenger to Warren and Bernie Sanders, the leading progressives.
“To the extent that they gain, it could be at Biden’s expense,” Democratic analyst David Axelrod said on CNN. Added his nonpartisan colleague Gloria Borger: “In some ways Buttigieg explains Biden better than Biden explains Biden.”
On MSNBC, the message was the same, with Washington Post political reporter Robert Costa saying there was “a real impression tonight about Mayor Buttigieg trying to compete for that Biden vote.”
On Fox News, Bret Baier showed some clips of Biden’s “word salad” performance and said, “Joe Biden did not have a good night.” If Biden continues to fade, Baier added, Democrats will want to have the option of a moderate like Klobuchar or Buttigieg to go up against Warren or Sanders — who, Baier said (this was Fox, after all), are part of “the progressive far left.”
The big question is whether these predictions of a Klobuchar and/or Buttigieg breakout will become reality, or if they’re wishful thinking. Klobuchar may not even qualify for the next debate. The media thrive on conflict and a simple story line. In the most recent polls, Warren and Biden have established themselves as the front-runners, with Sanders not too far behind. A Biden-versus-Warren race satisfies the media’s desire for a clash between an establishment moderate trying to hang on against an insurgent progressive — but not if Biden can’t hold up his end.
Thus, Tuesday was the best opportunity for the second-tier candidates to emerge, with Klobuchar and Buttigieg making the most of it.
Buttigieg, oddly enough, had his best moment during the debate by going after Beto O’Rourke, who has been a non-factor in the campaign. O’Rourke is pushing a mandatory gun buyback plan that Buttigieg has called unworkable as well as a distraction from more modest measures that might actually get passed.
“Let’s … lead and not be limited by the polls and consultants and focus groups,” O’Rourke told Buttigieg during the debate — which brought a withering retort from Buttigieg.
“I don’t need lessons from you on courage, political or personal,” Buttigieg said, a response that, among other things, was a not-so-subtle reminder of his military service.
During a post-debate appearance on CNN, Chris Cuomo tried to get Buttigieg to expand on his criticism of O’Rourke, but Buttigieg wasn’t going there. Instead, he stuck with his talking points that he is “the best positioned to beat Donald Trump,” and that Democrats win when they embrace generational change.
Klobuchar, on the other hand, was only too happy in her post-debate interviews to keep bashing Warren, for whom she has “a lot of respect.” (But of course!) In her interview with Chris Hayes, Klobuchar cast her own proposals to add a public option to the Affordable Care Act and rein in the pharmaceutical industry as ideas as worthy of discussion as Warren’s embrace of Medicare For All — and, ultimately, more practical. Of Warren’s oft-repeated contention that the moderates aren’t willing to fight, Klobuchar added, “I’ve really had it with that.”
Next it was on to Fox News, where Klobuchar repeated her criticisms in an interview with Shannon Bream. Klobuchar also made a pitch for right-leaning Fox News viewers who would presumably be out of reach for her more progressive adversary.
“There are a lot of moderate Republicans who agree with me,” she said, “and a lot of independents, and even some conservative Republicans.”
Thankfully, Klobuchar left out the right-wing conspiracy theorists who watch Fox’s prime-time lineup every night.
My own take? Warren was not perfect, but she was basically OK. The media are throwing a fit, not because she won’t answer their question about the tax increases that would be needed to pay for Medicare For All, but because she refuses to accept their framing. She’s answered the question: Medicare For All would result in lower overall costs for the middle class. She might be wrong, but you can’t call that an evasion.
Biden was so-so, showing some emotion over the false smears the Trump camp has directed at him and his son Hunter over Hunter’s business interests in Ukraine and China. Biden’s yelling at Warren and waving his hand in her face was, uh, interesting.
And Sanders, two weeks after suffering a heart attack, turned in maybe his best debate performance — making his points with his usual gusto, but also showing a warm and funny side, especially when Cory Booker noted that Sanders is in favor of medical marijuana.
Bernie Sanders is an unlikely savior of journalism.
The iconoclastic senator has long had a prickly relationship with the press in his home state. According to Paul Heintz, a staff writer with the alt-weekly Seven Days, Sanders hasn’t granted a full-fledged interview in more than four years to the paper, which touts itself as the state’s largest. And Seven Days is not alone. “I would say that it’s highly unusual for an elected official in Vermont to not regularly speak to Vermont reporters,” Heintz said. “I think it’s problematic.”
Then, last month, Sanders claimed without evidence that The Washington Post covered him critically because of his attacks on Amazon, whose founder and chief executive, Jeff Bezos, also owns the Post. “The remark sounded an awful lot like the kind of criticism leveled by someone else,” said NPR’s Domenico Montanaro. That someone else: President Trump.
But apparently you don’t have to love the media to appreciate its vital role in a democracy. Because last week Sanders, an independent socialist who is once again seeking the Democratic presidential nomination, outlined a solid media-reform proposal in an essay for the Columbia Journalism Review.
“Real journalism requires significant resources,” he wrote. “One reason we do not have enough real journalism in America right now is because many outlets are being gutted by the same forces of greed that are pillaging our economy.”
Sanders devoted much of his piece to rehashing the financial crisis that has brought news organizations to their knees, especially at the local level. But he also offered some specific ideas that fall into three categories:
• Opposing media mergers such as the proposed combination of the GateHouse Media and Gannett newspaper chains as well as the CBS-Viacom deal. Media companies would be required to detail how many journalism jobs would be lost in such mergers. Employees would have an opportunity to buy their media companies. Unions would be strengthened. And ownership caps would be re-imposed on broadcast outlets for the first time since 1996 in the hopes of restoring localism and diversity.
• Swinging the antitrust club at Google and Facebook, which, as Sanders observed, now vacuum up some 60 percent of all digital advertising revenues. It’s not clear how any actions Sanders might take against the two internet giants would benefit journalism. He doesn’t help his cause by citing a flawed study claiming that, in 2018, “Google made $4.7 billion off reporting that Google did not pay for.” (Well, no, not really.) But there’s little question that both companies have benefited from free content provided by newspapers and other media outlets. At the very least, Sanders seems likely to support a temporary antitrust exemption that would allow the news business to negotiate some sort of revenue-sharing deal.
• Taxing targeted advertising — that is, ads served up based on the data that has been collected about you — and using it to fund “nonprofit civic-minded media.” This is an idea that has been promoted by the media-reform organization Free Press “to support local-news startups, sustain investigative projects, seed civic-engagement initiatives, and lift up diverse voices that have long been excluded from traditional media coverage.” Government funding of journalism is bound to be controversial, even though it already takes place to a limited degree with public radio and television. But there are ways to insulate such funding from political interference — though skepticism is certainly warranted.
But parts of Sanders’ plan are likely to resonate with the public — especially his targeting of Google and Facebook, which are increasingly unpopular for violating our privacy and harming democracy. Indeed, Sanders’ rival Elizabeth Warren beat Sanders to the punch by many months in proposing to break up Google, Facebook and Amazon.
One way that corporate media owners succeed in defending their turf is by controlling the terms of the debate. Thus you will hear that Sanders proposes to impose new regulations on an industry that, for the sake of the First Amendment, ought to be as unregulated as possible. But as the media scholar Robert McChesney has observed, the alternatives are not regulation or deregulation; rather, they come down to what kind of regulation we want — in the public interest, or in the corporate interest?
This is especially true in the case of broadcast media, which must be regulated because there are only a limited number of frequencies available. Sanders, to his credit, is not proposing the return of anti-free-speech policies such as the Fairness Doctrine and equal-time provisions. Rather, he seeks to ensure diversity of ownership while letting the content take care of itself.
Sanders may not like journalists very much, but he understands the importance of journalism. Far from being radical, his plan pulls together some strands that have been around for quite a while. Teddy Roosevelt would praise his stance against mergers and in favor of taking some sort of action against the monopolistic practices of Facebook and Google.
Whether Sanders becomes our next president or not, his proposals amount to a serious attempt to wrestle with the forces that have harmed journalism and have concentrated media power in the hands of a few. Voters and his fellow candidates should take notice.
The Washington Post reports some startling figures about the role of private equity firms in the retail business. According to the Post’s Abha Bhattarai:
More than 1.3 million Americans have lost their jobs in the past decade as a result of private equity ownership in retail, according to a report released Wednesday. That includes 600,000 retail workers, as well as 728,000 employees in related industries. Overall, the sector added more than 1 million jobs during that period. [my emphasis]
This is exactly what has happened to the newspaper business over the past several decades. Yes, the internet has devastated the economic model, with advertisers fleeing to Craigslist, Google and Facebook. But that’s only part of the story. The other part is that corporate chains have hollowed out newsrooms in order to maximize profits at a time when what was really needed was investment and patience.
The most notorious of the corporate raiders is MediaNews Group, formerly Digital First Media, which is owned by Alden Global Capital. MNG has all but destroyed once-great papers like The Denver Post and The Mercury News of San Jose, as U.S. Sen. Elizabeth Warren notes in her proposal to re-regulate Wall Street. Cuts continue at MNG’s Massachusetts holdings, the Boston Herald, The Sun of Lowell and the Sentinel & Enterprise of Fitchburg. Meanwhile, The Berkshire Eagle is rebuilding after a group of local business people bought the paper back from MNG.
For years we’ve been hearing that Amazon is destroying retail — yet, as the Post observes, that part of the sector not being strangled by private equity has continued to grow. Newspapers’ business problems are very real. But surely they would be shrinking a lot more slowly, and perhaps groping their way toward sustainability, if they weren’t being destroyed by our financial overlords.