Private equity ownership is devastating retail — just as it has destroyed newspapers

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.

Consider, too, that independent regional papers such as The Boston Globe and the Star Tribune of Minneapolis are doing reasonably well, and others are taking innovative steps such as giving iPads to their readers to ease the transition to all-digital (the Arkansas Democrat-Gazette), operating under hybrid for-profit/nonprofit ownership (The Philadelphia Inquirer) or are pursuing pure nonprofit ownership (The Salt Lake Tribune).

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.

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Better campaign coverage: More substance, less horse race — and holding Trump to account

Media coverage of the 2020 presidential campaign is shaping up to be the same depressing spectacle that it always is. With few exceptions, the press focuses on polls, fundraising, who’s up, who’s down, and who made a gaffe. Two and a half years after Hillary Clinton was denied the White House despite winning nearly 3 million more votes than Trump, there’s also a lot of dangerously silly talk about whether Americans are willing to elect a woman.

Read the rest at WGBHNews.org. And talk about this post on Facebook.

Kamala Harris and Elizabeth Warren are the class of the Democratic field

I’m in Toronto at a conference, so I missed the first hour of Wednesday’s debate and the first half-hour of Thursday’s. This is impressionistic, and what seems obvious this morning may look wrong in a day or two. But I thought Kamala Harris and Elizabeth Warren established themselves as the class of the Democratic field, while Joe Biden seriously wounded himself in his “states’ rights” exchange over desegregation with Harris.

I’ve thought for a while that a Harris-Warren or Warren-Harris ticket might be the Democrats’ best bet, but I’ve been frustrated with Harris’ fuzzy I’ll-have-to-look-into-that responses. On Thursday, she was prepared, offering compelling personal stories about herself and others in response to questions that could have prompted wonky responses.

As for the rest, Cory Booker and Julián Castro elevated their candidacies. Pete Buttigieg was poised and articulate, as he always is. And there at least a dozen candidates I hope we never see again.

The format, needless to say, was absurd. A series of much smaller debates, 20-minute one-on-ones — anything but two-hour shoutfests among 10 candidates with Chuck Todd constantly interrupting because they weren’t complying with his idiotic demands for one-word answers.

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Elizabeth Warren and that Washington Post story

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God help me, but I’m writing about Elizabeth Warren and the likability factor

Elizabeth Warren. Photo (cc) 2012 by Edward Kimmel.

A few very brief thoughts about Elizabeth Warren and whether she’s “likable enough” (to recycle an unfortunate old quote from Barack Obama) to be elected president — the subject of a front-page story in today’s Boston Globe as well as multiple other outlets.

First, yes, of course there’s an element of sexism to it, as there was when the same questions were raised over and over about Hillary Clinton. But let’s not get carried away — it’s not just sexism. Republicans used the likability factor like a sledgehammer against Al Gore and John Kerry, and it was effective. Their opponent, George W. Bush, was regularly described as someone you’d rather have a beer with, which always struck me as pretty odd given that Bush was an alcoholic who had given up drinking.

Second, in Warren’s case, “likability” is shorthand for something real — a lack of political adroitness despite her substantive strengths and despite being, as best as I can determine, genuinely likable. The whole Native American thing is ludicrous, and it seems as though she should have been able to put it behind her years ago when Scott Brown and the Boston Herald first tried to make an issue of it. Yet it’s still here, and it makes you think she should have handled it differently. Certainly the DNA test didn’t help.

Third, there’s something to the idea that she let her moment slip away. The news and political cycles are so accelerated now that 2016 may have represented her best chance. That has nothing to do with likability. The fact that Beto O’Rourke may be a serious candidate seems silly unless you view it in that context.

Finally, Warren’s likability is a phony issue because it’s about the pundits, not the voters. If she wins the nomination and is ultimately elected president, there’s the answer to your question: she’s likable enough.

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‘Nevertheless, she persisted’

Elizabeth Warren at the 2016 Democratic National Convention. Photo via Wikimedia Commons
Elizabeth Warren at the 2016 Democratic National Convention. Photo via Wikimedia Commons.

Every member of the Senate, Democrat and Republican, should be lining up today to support Sen. Elizabeth Warren — and the cause of justice — by reading into the record Coretta Scott King’s 1986 letter about Jeff Session’s voter-suppression efforts. Here is NPR’s account of Warren’s showdown with Senate majority leader Mitch McConnell.

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Banksters demand that Senate Democrats silence Warren

This is really a remarkable story. In today’s Boston Globe, Annie Linskey reports that banksters from JPMorgan Chase and Citigroup have threatened to withhold payoffs (let’s not be too squeamish about what we call these payments) to Senate Democrats unless they can get Elizabeth Warren and Sherrod Brown to shut up.

Warren has asked her supporters to raise $30,000 to make up the difference.

As the Globe notes, the story was first reported by Emily Flitter of Reuters, who adds the detail that Goldman Sachs and Bank of America are part of the cabal. Think about that the next time you visit the ATM.

More: Nice commentary by Charlie Pierce.

The Post digs into the Clintons’ dubious fundraising ties

I continue to be astonished that Hillary Clinton has no serious opposition for the Democratic presidential nomination. This time eight years ago, Barack Obama was mounting a full-scale challenge. Now, there are occasional noises from the likes of Jim Webb, Bernie Sanders and Martin O’Malley, but that’s about it. (Sorry, folks. Elizabeth Warren isn’t running.)

The latest piece of appalling news about the Clintons is a front-page story in today’s Washington Post revealing that the Clinton Foundation, run by her husband, Bill, took in millions of dollars from foreign governments while Hillary was secretary of state. Much of the money, write the Post’s Rosalind S. Helderman and Tom Hamburger, “came from countries with complicated diplomatic, military and financial relationships with the U.S. government, including Kuwait, Qatar and Oman.”

The story is a follow-up to an earlier, equally appalling Post story about the Clinton Foundation’s dubious fundraising.

Caveat: Yes, the foundation’s money goes to good causes like earthquake relief, lowering the cost of drugs used to treat AIDS and HIV, and alleviating climate change. But it’s difficult to avoid the conclusion that foreign governments seeking to curry favor with the Obama administration funneled money to Bill Clinton in order to receive more favorable treatment from Hillary Clinton.

Exposed! Check out this comment from Bob Gardner: “Not surprised that this story would get traction from an employee of the Koch-funded WGBH.”

Gomez-mania and its limits

Gabriel Gomez working the crowd
Gabriel Gomez meeting and greeting

Watching TV and following Twitter last night, I saw a lot of praise for Gabriel Gomez’s running a credible campaign and doing better than expected.

Really? Gomez lost by 10 points. Scott Brown lost by eight last November. Although Gomez didn’t have to contend with President Obama being on the ballot, as Brown did, a low turnout was supposed to help Gomez — and he certainly got that.

My guess is that Gomez got the bare minimum of votes available to virtually any Republican and failed to build on it at all. The fact is that he lost by a substantial margin to Ed Markey, an uninspiring Democratic candidate. (A fading Brown did better against Elizabeth Warren, a rock star compared to Markey.) The extent of Gomez’s defeat was right in line with most of the polls, so he most definitely did not do better than expected.

I doubt any Republican can win federal office in Massachusetts right now because congressional Republicans are so unpopular here. But Gomez didn’t help himself by claiming to be a moderate, taking clear stands against abortion rights and gun control, and then ludicrously trying to convince voters that he’d done no such thing.

Sorry, folks. A star wasn’t born last night.

Photo (cc) by Mark Sardella and published under a Creative Commons license. Some rights reserved.

Media Nation’s top 10 posts of 2012

be02f758328311e2b55612313804a1b1_7Work-force reductions at The Boston Globe. The end of WFNX as an over-the-air radio station. “Local” news from the Philippines. Possible bankruptcy at GateHouse Media.

These were a few of the top 10 Media Nation posts of 2012 as determined by Google Analytics and WordPress’ own internal statistics.

Most people who read Media Nation come in via the home page, which means that any notion of a “top 10” is dubious. Usually it means that a particular post got retweeted a lot on Twitter or was linked to by a popular media website such as JimRomenesko.com.

But the list isn’t entirely without meaning — and one takeaway for me is that Media Nation’s role as an aggregator and a curator may be its most important. I’ll keep that in mind in the year ahead.

Here is my top 10 for 2012.

1. The Boston Globe keeps on shrinking (July 23). Despite some encouraging signs in the form of rising digital-subscription numbers and a continued commitment to first-rate journalism, The Boston Globe, like nearly all daily newspapers, continues to struggle financially. Last summer Media Nation obtained a memo from Globe publisher Christopher Mayer announcing another wave of downsizing at the Globe and its sister paper, the Telegram & Gazette of Worcester.

2. Donna Halper on the future of radio (May 17). Friend of Media Nation Donna Halper was kind enough to write a guest commentary, and her post turned out to be the second most popular of 2012. Halper wrote following an announcement by the Phoenix Media/Communications Group that it would sell WFNX’s broadcast frequency, 101.7 FM, to Clear Channel. Fortunately for local music fans, by the end of 2012 WFNX and the Globe’s RadioBDC were engaged in a spirited competition of online-only local music stations — the real future of radio.

3. Long-distance “local” journalism (July 5). The public radio program “This American Life” and the journalist Anna Tarkov reported extensively on Journatic, which helps community newspapers cuts costs by outsourcing some of their local coverage. At its worst, news was being compiled by underpaid Filipino workers writing under fake bylines. Dubbed “pink slime” journalism by one former practitioner, Journatic underscored what debt-ridden corporate chains will do to survive — and thus demonstrated the importance of independent local journalism.

4. And Joe Scarborough thinks “Morning Joe” is awesome (Jan. 1). A full-page ad in The New York Times for the wretched MSNBC program “Morning Joe” started the gears whirring when I noticed one of its celebrity endorsers was Tom Brokaw. Who, uh, appears on “Morning Joe.” I got to work, and soon found that Politico, which was quoted as praising the program, had an undisclosed partnership. The ad even stooped to using seemingly positive quotes from two reviewers who actually didn’t like it much at all. Disingenuous, to say the least.

5. More bad news for GateHouse Media (March 19). By now it’s not exactly news when executives at GateHouse Media, struggling with $1.2 billion in debt, pay themselves handsome bonuses. (Nor is that unusual at newspaper companies.) In 2012, though, there was a wrinkle at the chain, which owns some 100 community newspapers in Eastern Massachusetts. Jack Sullivan of CommonWealth Magazine paged through the company’s financial disclosures and discovered that officials were openly raising the possibility of a bankruptcy filing.

6. David Gregory debates himself (Oct. 1). The host of “Meet the Press” was brought in to moderate the second televised debate between Republican Sen. Scott Brown and his Democratic opponent, Elizabeth Warren. Unfortunately, it was all about David Gregory. Good thing the candidates were forced to weigh in on whether Bobby Valentine deserved a second year as Red Sox manager. Warren blew the question but won the election.

7. From Newtown, a plea for media restraint (Dec. 17). I republished an open letter from John Voket, associate editor of The Newtown Bee, to his colleagues at the New England Newspaper & Press Association following the massacre at Sandy Hook Elementary School. Voket wrote about “reporters and media crews invading the yards and space of grieving survivors, school staff and responders,” and asked editors “to remind your correspondents that most are still requesting to be left alone.” A heartfelt message from ground zero.

8. Calling foul on politicians who lie (Aug. 30). It would be hard to come up with a more falsehood-laden performance than U.S. Rep. Paul Ryan’s speech at the Republican National Convention. Ryan’s lies prompted me to wonder how far the balance-obsessed media would be willing to go in labeling them for what they were.

9. At CNN, getting it first and getting it wrong (June 28). My instant reaction to CNN’s false report that the U.S. Supreme Court had overturned the individual mandate in the Affordable Care Act. At least CNN executives flogged themselves in the public square. As we later learned, Fox News made the same mistake — and refused to apologize.

10. An unconscionable vote against the disabled (Dec. 5). My reaction to Senate Republicans’ rejection of a United Nations treaty on the rights of the disabled — a treaty modeled after the Americans with Disabilities Act, championed by President George H.W. Bush, a Republican.

Ghosts of 2011. Oddly enough, the single most popular post of 2012 was one I wrote in 2011 — a fairly terse item on Jay Severin’s return to the Boston airwaves, a comeback that proved to be brief. As I wrote last year, I’ve put up several Severin posts that have generated huge traffic, and I have no idea why.