Headlines distort CBO report on Obamacare

The reaction to a Congressional Budget Office report released Tuesday demonstrated how easily politicians are able to game the media system.

The CBO, a respected source of nonpartisan data, found that the Affordable Care Act would lead to the disappearance of more than 2 million jobs — nearly all of them because people will choose to stop working or cut back on their hours now that their health insurance is no longer dependent on their continued employment. CBO director Douglas Elmendorf put it this way:

I want to emphasize that that reduction doesn’t mean that that many people precisely will choose to leave the labor force. We think that some people will chose to work fewer hours. Other people will choose to leave the labor force.

Of course, that didn’t stop Republican opponents from claiming that the CBO report proves the ACA is a job-killer. And why not? The media are so quick to go along. Let’s consider that this is Elmendorf’s report, and he said at a news conference precisely what it meant. Yet the very NPR story in which his remarks are quoted is headlined “Is Obamacare A Job Killer? New Estimates Suggest It Might Be.” Gah.

This morning I looked at the front pages of four major dailies. Here’s how they stack up, in order of disingenuousness.

Screen Shot 2014-02-05 at 10.22.25 AM

1. The Boston Globe. “Health law projected to put a dent in workforce; GOP calls analysis proof of act’s failings.” The clear impression is that people are going to lose their jobs because of the ACA. If you would like to believe that, go right ahead — but it’s not what the CBO said. The Globe headline is slapped atop a New York Times story (below) that isn’t nearly that bad.

Screen Shot 2014-02-05 at 10.20.05 AM

2. The New York Times. “Health Care Law Projected to Cut the Labor Force; Choosing Not to Work; G.O.P. Seizes On Data — Drop May Equal 2.5 Million Jobs.” Whew! Try saying it all without taking a breath. The Times’ headlines is slightly better than the Globe’s: the second deck, “Choosing Not to Work,” gets at the gist of the CBO report. But the rest of it makes it sound like Tuesday was a very bad day for the ACA. You’ve got to read the story to find out what’s really going on.

Screen Shot 2014-02-05 at 10.21.24 AM

3. The Washington Post. “New fuel for the health-law fight; CBO: More will quit jobs, cut hours; Estimates revive debate over economic effects.” Not bad. The impression given by the headline is that the fight is over the economic effect of people quitting their jobs. Not quite right, but we’re getting closer. Here’s the story.

Screen Shot 2014-02-05 at 10.21.57 AM

4. The Wall Street Journal. “Health Law to Cut Into Labor Force; Report Forecasts More People Will Opt to Work Less as They Seek Coverage Through Affordable Care Act.” Folks, we have a winner — a headline that accurately reflects what the CBO actually said. Good story, too. (To get around the Journal’s paywall, enter the headline at Google News. Don’t worry. Rupert knows about it and says it’s OK.)

The problem with deceptive or incomplete headlines is that few people get past them or the partisan attacks they reflect. What House Speaker John Boehner (quoted in the Times story) said is simply flat-out wrong: “The middle class is getting squeezed in this economy, and this CBO report confirms that Obamacare is making it worse.”

As U.S. Sen. Jeanne Shaheen, D-N.H., put it in a conversation with reporters (also quoted in the Times): “You guys are going to politicize it no matter what happens.”

Journalists need to resist the urge.

Headline images via the Newseum’s “Today’s Front Pages.”

Globe editor McGrory gets vote of confidence

The Boston Business Journal has an interview with new Boston Globe chief executive Mike Sheehan, who tells Jon Chesto that he’s a fan of Globe editor Brian McGrory.

So it would appear that McGrory’s job is safe — as it should be. He’s done a terrific job in the year-plus he’s served since taking over for Marty Baron, now the top editor at The Washington Post.

Washington Post to expand staff and ambitions

Then-Boston Globe editor on WGBH-TV (Channel 2) in 2009.
Marty Baron (2009 file photo)

The Washington Post faced a lot of questions after Ezra Klein packed up and took his talents to Vox Media. Were Jeff Bezos and company making a Politico-level mistake in not finding a way to keep Klein, the founder of Wonkblog, under its own roof? Or was Klein making unreasonable demands — reportedly a $10 million investment for a much bigger staff?

My own view is that the two sides should have found a way to keep Klein loosely affiliated with the Post, although I have no way of knowing whether that was a realistic option.

In any event, I’m burying the lede. On Wednesday the Post went a long way toward answering those questions by announcing a significant investment in its news operations. Wonkblog will continue. And according to a memo to the staff from executive editor Marty Baron, a considerable amount of hiring and expansion is under way, including more blogs, a breaking-news desk and an expanded Sunday magazine.

“With these initiatives, we can all look forward to a future of great promise,” Baron wrote. (Thanks to Jim Romenesko, who also links to a Washingtonian story in which Post publisher Katharine Weymouth offers further insight into Klein’s departure.)

In an interview with Ravi Somaiya of The New York Times, Baron says of Bezos: “He hasn’t been passive. He’s heavily engaged, keenly interested in what our ideas are. He offered his own thoughts and expressed a willingness to invest.”

These are very good signs at a time when the news about the news is more favorable than anything we’ve heard in years (Patch’s latest near-death experience notwithstanding). Whether such optimism is warranted will be the media story of 2014 and beyond.

Photo is a screen grab from an appearance then-Boston Globe editor Baron made on WGBH-TV’s “Greater Boston with Emily Rooney” in 2009.

Volokh’s ‘joint venture’ points toward a new model

David Carr has the details of Wonkblog founder Ezra Klein’s new venture.

I recently argued in the Nieman Journalism Lab that legacy news organizations like The Washington Post should find ways of forming loose networks that would include partnerships with stars like Klein rather than traditional employment/ownership arrangements. That may not have been feasible with Klein specifically, but it’s a model that ought to be considered.

So I find it interesting that, last week, the Post began hosting The Volokh Conspiracy, a libertarian blog that’s been around since 2002. In a message to his readers, Eugene Volokh describes the arrangement as a “joint venture.” He writes:

We will also retain full editorial control over what we write [his emphasis]. And this full editorial control will be made easy by the facts that we have (1) day jobs, (2) continued ownership of our trademark and the volokh.com domain, and (3) plenty of happy experience blogging on our own, should the need arise to return to that.

Of course, Klein’s ambitions are a lot bigger than Volokh’s, and reportedly came with an eight-figure price tag. By contrast, the Volokh move would appear to present little risk for Post owner Jeff Bezos. Still, Carr’s assertion that the Post “has long-festering problems with its core business” left me wondering why Bezos didn’t see Klein as part of the solution to those problems.

Update: According to the Post’s Paul Farhi, Klein never pitched Bezos directly. The major issue, Farhi reports, was how much independence the Post was willing to give Klein.

Can Aaron Kushner go the distance?

Aaron Kushner speaking in April 2013 at California State University, Fullerton.
Aaron Kushner speaking in April 2013 at California State University, Fullerton.

This commentary was published earlier at The Huffington Post.

Has Orange County Register owner Aaron Kushner run into nothing more than a bit of turbulence from which he can recover? Or do the layoffs he announced last week show that his plan to resuscitate the newspaper business by hiring more journalists and doubling down on print is fundamentally flawed?

I hope it’s the former — not just because I’d like to see him prove everybody wrong (including me) about the future of news, but because I’m planning to include him in a book about a new breed of media moguls who are using their personal wealth and smarts to innovate their way toward a brighter future. (News of the layoffs was broken by Gustavo Arellano of OC Weekly, which has taken a jaundiced view of Kushner’s ownership.)

Trouble is, there have been hints previously that Kushner, 40, lacked the sheer financial firepower of Boston Globe owner John Henry or Washington Post owner Jeff Bezos. I’ll get to that in a moment. But first, a little background on what’s unfolding in Southern California.

Kushner, who bought the Register in 2012 for $50 million, was the most celebrated new newspaper owner in the country before he was eclipsed in August of last year by Bezos and Henry. “Can Aaron Kushner save the Orange County Register — and the newspaper industry?” asked the Columbia Journalism Review last May. As CJR’s Ryan Chittum explained it, Kushner’s vision was based on:

  • Lavish attention to the print product, including more pages and an upgrade in the quality of paper.
  • A move away from free or even reduced-price content online, with Internet users paying exactly the same fees as print subscribers.
  • An increase in the size of the newsroom staff, as he added 140 journalists to the 180 who were there when he bought the paper.

Nor was Kushner content with pumping up the Orange County Register. Last August he started a new daily, the Long Beach Register. He bought The Press-Enterprise of Riverside. And in his most audacious move yet, he announced plans to start a Los Angeles Register to compete with the Los Angeles Times, once among the best newspapers in the country and still formidable. (LA is also home to a second paper, the Los Angeles Daily News.)

Then, last week, came a significant setback. Not everyone agrees on the figures, but Ken Bensinger of the LA Times reported that Kushner laid off about 35 people at the Orange County Register and 39 at The Press-Enterprise. Register editor Ken Brusic and other top editors left. Rob Curley, who had overseen digital initiatives at papers at the Washington Post and the Las Vegas Sun, was promoted to the top position.

“We are evaluating our cost structure for the next leg of our journey in terms of covering Orange County and LA County,” Kushner told New York Times media columnist David Carr, who noted that Kushner plans to plunge ahead with his idea for a Los Angeles paper without adding any staff. Carr wrote:

By amortizing the costs of all the journalists he hired over a bigger market, he can achieve savings in terms of production while adding marginal readers and advertising.

He clearly sees himself as a smart entrepreneur making bold bets. I see a man on a wire, with millions of dollars and hundreds of jobs at stake.

As for past hints that Kushner may not be well-heeled enough to play the long game, you may recall that, several years ago, he tried to buy The Boston Globe. (The Globe’s then-owner, the New York Times Co., apparently showed no interest, and Kushner later struck out on a bid to purchase Maine’s Portland Press Herald.)

Before Kushner gave up on his Globe dream, though, Katherine Ozment wrote an in-depth profile of him for Boston magazine. Among other things, Ozment attempted to show precisely how Kushner had made a fortune in the greeting-card business, his major claim to fame up to that time. What she found was a haze of acquisitions, layoffs and charges (which Kushner denied) that he was late in paying artists, sales reps and the like.

Eventually Kushner left his company after some sort of falling-out with the investors, though he told Ozment he remained part of ownership. “I had a vision for the business, and they had a very different vision, and they controlled the working capital, so we decided to move on,” he said.

Despite that possible warning sign, it has to be noted that the Orange County Register remains a much more richly staffed paper today than when Kushner bought it. In a memo to his staff published by the blog LA Observed after the layoffs were announced, Kushner wrote that he now has 370 journalists — uh, make that “content team members” — covering Orange County and Los Angeles County, up from 198 a year and a half ago.

An optimistic take would be that Kushner got ahead of himself and is now retrenching, but not retreating. No doubt we’ll know a lot more as 2014 unfolds.

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

Ezra Klein has left the building

To no one’s surprise, Ezra Klein, founder and editor of the popular Wonkblog, is leaving The Washington Post along with two other journalists in order to launch a new venture. Andrew Beaujon of Poynter has the details. In Politico, Dylan Byers and Hadas Gold report that Klein was looking for the Post to invest $10 million for a 30-staffer operation.

Post owner Jeff Bezos and his top lieutenants may have had good reasons for not meeting Klein’s conditions, but there’s no question the Post’s online traffic and buzz are going to suffer as a result of his departure. Recently I wrote a piece for the Nieman Journalism Lab arguing that news organizations need to find ways of forming loose networks with independent-minded stars like Klein.

If Bezos didn’t want to give Klein $10 million (and there’s no reason why he should), why not let Klein raise some of that venture capital on his own and give him an ownership stake? Maybe the two sides talked about ideas like that and couldn’t come to an agreement. But I suspect this is a divorce that could end up hurting both parties.

Unoriginal thoughts from Tom Friedman

Screen Shot 2014-01-19 at 11.43.41 AM
Click on chart for the full interactive version at Infogr.am.

Today’s column by Thomas Friedman of The New York Times may have set some sort of record. In a 1,200-word piece with the unpromising headline “Obama’s Homework Assignment,” Friedman managed to type just 343 words, or 29 percent of the total. The remainder was given over to:

  • A speech by Secretary of Education Arne Duncan; 358 words, or 30 percent.
  • An email to The Washington Post from an anonymous teacher; 287 words, or 24 percent. I have called her Anonymous Teacher No. 1 in the chart above.
  • A letter to Friedman from Anonymous Teacher No. 2; 212 words, or 18 percent.

Given Friedman’s clip-paste-and-run approach, it seems worth pointing out that the theme of his (I realize I’m misusing “his” to describe a collective effort) column is that these damn kids are just too lazy. He — yes, this is really him, not one of his co-contributors — writes:

Are we falling behind as a country in education not just because we fail to recruit the smartest college students to become teachers or reform-resistant teachers’ unions, but because of our culture today: too many parents and too many kids just don’t take education seriously enough and don’t want to put in the work needed today to really excel?

Well, I don’t know. But I can think of a certain op-ed columnist for the Times who is acting as a poor role model.

I leave you with this:

Conflicts of interest and the new media moguls

5790408612_8952178d3f_mWashington Post executive editor Martin Baron has rejected a demand by a group of left-leaning activists that the Post more fully disclose Amazon.com’s business dealings with the CIA.

Nearly 33,000 people have signed an online petition put together by RootsAction, headed by longtime media critic Norman Solomon, to call attention to Amazon’s $600 million contract to provide cloud services to the CIA. The Post’s owner is Jeff Bezos, the founder and chief executive of Amazon. Here is the text of the petition:

A basic principle of journalism is to acknowledge when the owner of a media outlet has a major financial relationship with the subject of coverage. We strongly urge the Washington Post to be fully candid with its readers about the fact that the newspaper’s new owner, Jeff Bezos, is the founder and CEO of Amazon which recently landed a $600 million contract with the CIA. The Washington Post’s coverage of the CIA should include full disclosure that the sole owner of the Post is also the main owner of Amazon — and Amazon is now gaining huge profits directly from the CIA.

Baron, in his response, argues that the Post “has among the strictest ethics policies in the field of journalism, and we vigorously enforce it. We have routinely disclosed corporate conflicts when they were directly relevant to our coverage. We reported on Amazon’s pursuit of CIA contracts in our coverage of plans by Jeff Bezos to purchase The Washington Post.” Baron goes on to point out that the Post has been a leader in reporting on the National Security Agency and on the CIA’s involvement in the Colombian government’s fight against an insurgency, writing:

You can be sure neither the NSA nor the CIA has been pleased with publication of their secrets.

Neither Amazon nor Jeff Bezos was involved, nor ever will be involved, in our coverage of the intelligence community.

(Note: I first learned about the petition from Greg Mitchell’s blog, Pressing Issues.)

The exchange between RootsAction and Baron highlights the conflicts of interest that can arise when wealthy individuals such as Bezos buy in to the newspaper business. It’s a situation that affects The Boston Globe as well, as its editors juggle the lower-stakes conflict between John Henry’s ownership of the Globe and his majority interest in the Red Sox.

Baron himself is not unfamiliar with the Red Sox conflict, as the New York Times Co., from whom Henry bought the Globe, owned a minority stake in the team and in New England Sports Network, which carries Red Sox games, during most of Baron’s years as Globe editor.

The way the Globe handled it during those years was just about right: don’t disclose in sports stories, but disclose whenever the paper covers the Red Sox as a business. Current Globe editor Brian McGrory has insisted that Henry will not interfere. Henry, in a speech before the Greater Boston Chamber of Commerce last week, said he would not breech the wall of separation between the Globe’s news operations and its business interests.

Of course, it’s not as though the era in which news organizations were typically owned by publicly traded corporations was free of such conflicts. (The Times Co., after all, is a publicly traded corporation, though the Sulzberger family calls the shots.) Media critic Danny Schechter noted in his book “Embedded: Weapons of Mass Deception” that MSNBC — then in its pre-liberal phase — was a cheerleader for the war in Iraq even as its then-corporate parent, General Electric Co., was a leading military contractor.

But the rise of a new breed of media moguls such as Bezos, Henry and Aaron Kushner of the Orange County Register, who buy their way into the news business with their own personal wealth, seems likely to bring the issue of conflicts to the fore. The same is true of a media entrepreneur of a different sort — eBay founder Pierre Omidyar, who is launching an online venture called First Look Media with (among others) the journalists Glenn Greenwald and Laura Poitras.

It is the very fact that these individuals have been successful that makes them such intriguing players in the quest to reinvent the news business. But disclosure and non-interference need to be at the forefront of their ethical codes.

Ezra Klein and the problem with top-down control

Ezra Klein
Ezra Klein

This commentary was published earlier at the Nieman Journalism Lab.

What should a 21st-century news organization look like? A single entity, run from the top, with a common set of values? Or a loose network of related projects, sharing a brand and to some extent a mission but operating semi-independently?

With the likely departure of Ezra Klein from The Washington Post, the management of one of our last great newspapers might be showing signs of preferring the former approach. Klein, who founded and runs the widely read Wonkblog at washingtonpost.com, is reportedly leaving for a new venture, as yet undefined. According to Ravi Somaiya in The New York Times, Klein sought an eight-figure Post investment in the new project. Klein already has his own Wonkblog staff, but clearly he has something much bigger in mind — perhaps an all-purpose independent news organization along the lines of Talking Points Memo. (Although it wouldn’t be called Wonkblog — the Post owns the name and will be keeping it, writes The Huffington Post’s Michael Calderone, who broke the news about Klein’s proposal last month.)

We can’t know everything that went into the decision. Maybe it came down to money. But Wonkblog generates a hefty amount of Web traffic — more than 4 million page views a month, according to a profile of Klein in The New Republic last February. “It’s ‘fuck you traffic,’” a Post source told TNR’s Julia Ioffe. “He’s always had enough traffic to end any argument with the senior editors.” Apparently, that’s no longer the case.

Significantly, the Times reports that new Post owner Jeff Bezos was involved in the decision to let Klein leave. Last September, shortly after announcing his intention to buy the Post for $250 million, the Amazon.com founder lauded the “daily ritual” of reading the morning paper — which led to some chiding by one of the Post’s own journalists, Timothy B. Lee. Despite Bezos’ well-earned reputation as a clear-eyed digital visionary, he appears to have some romantic notions about the business he’s bought into. And allowing entrepreneurs such as the twentysomething Klein run his own shop inside the Post might not fit with that vision.

What makes the likely Klein departure even more significant is that in 2006 the Post, under the ownership of the Graham family, allowed John Harris and Jim VandeHei to walk out the door and start Politico. Now, I have a lot of problems with Politico’s gossipy “drive the day” approach. But as Times columnist Ross Douthat has observed, much of the media conversation about Washington politics has shifted from the Post to Politico, threatening one of the Post’s franchises. It would have been enormously beneficial to the Post if Politico had been launched under its own umbrella. And Politico itself might be better.

So if the Post is reluctant to loosen the reins, are there any other news organizations that are taking a different approach? Walt Mossberg and Kara Swisher walked away from their AllThingsD site at The Wall Street Journal and set up a new project called Re/code in partnership with NBC. Perhaps the most famous example is Nate Silver, who brought his FiveThirtyEight poll-analysis site to The New York Times a few years ago and then moved it lock, stock and barrel to ESPN. In that regard, I suppose you could say NBC and ESPN have embraced the network approach. To some extent you might say also that of The Huffington Post, as it combines professional journalists, unpaid bloggers (I’m one) and a dizzying array content — from Calderone’s excellent media coverage to the notorious Sideboob vertical.

Jeff Jarvis recently argued that Patch — AOL’s incredibly shrinking hyperlocal news project — might have stood a chance if AOL chief executive Tim Armstrong had taken a network approach. Rather than running cookie-cutter community sites from the top down, Jarvis asked, what if Patch had offered advertising and support services to a network of independent or semi-independent sites?

The problem with such scenarios is that media executives — and business leaders in general — are not accustomed to the idea of giving up control. Calderone reports that some Post staffers have long grumbled at what they see as “preferential treatment” for Klein, which suggests the depth of the problem. But entrepreneurial journalists like Harris and VandeHei, like Mossberg and Swisher, and like Silver and Klein have a proven track record.

Legacy news organizations need to find a way to tap into that success outside the old models of ownership and not worry about obsolete notions of employer-employee relationships. Reach and influence are what matter. And they are proving to be incompatible with the ambitions of young journalists like Ezra Klein.

More: After this piece was published at Nieman, Mathew Ingram responded at Gigaom with his own smart take.

Explanatory journalism you can dance to

http://www.youtube.com/watch?v=Ki7zb8HbQPc

Back in September, during his first visit to The Washington Post, incoming owner Jeff Bezos identified an online feature called “9 questions about Syria you were too embarrassed to ask” as an example of the kind of journalism he likes.

So here we are four months later, and the Post has run a feature called “9 questions about South Sudan you were too embarrassed to ask.” Both pieces were written by foreign-affairs blogger Max Fisher. Like the earlier article, the South Sudan post includes an easy-to-understand explanation of why South Sudan has descended into chaos, how it became a country and — yes — a musical interlude.

The print version, by the way, features only five questions — and, of course, no Queen Zee.

Both the Syria and South Sudan posts are good examples of an old axiom — rather than complaining that what’s important often isn’t interesting, journalists should instead find ways to make the important interesting.