Government aid could save U.S. newspapers, spark debate

we should start a roulette style wheel of what industry "is too big to fail" and needs a bailout next.

Government aid could save U.S. newspapers, spark debate

Wed Dec 31, 2008 6:50pm EST

NEW YORK (Reuters) - Connecticut lawmaker Frank Nicastro sees saving the local newspaper as his duty. But others think he and his colleagues are setting a worrisome precedent for government involvement in the U.S. press.

Nicastro represents Connecticut's 79th assembly district, which includes Bristol, a city of about 61,000 people outside Hartford, the state capital. Its paper, The Bristol Press, may fold within days, along with The Herald in nearby New Britain.

That is because publisher Journal Register, in danger of being crushed under hundreds of millions of dollars of debt, says it cannot afford to keep them open anymore.

Nicastro and fellow legislators want the papers to survive, and petitioned the state government to do something about it. "The media is a vitally important part of America," he said, particularly local papers that cover news ignored by big papers and television and radio stations.

To some experts, that sounds like a bailout, a word that resurfaced this year after the U.S. government agreed to give hundreds of billions of dollars to the automobile and financial sectors.

Relying on government help raises ethical questions for the press, whose traditional role has been to operate free from government influence as it tries to hold politicians accountable to the people who elected them. Even some publishers desperate for help are wary of this route.

Providing government support can muddy that mission, said Paul Janensch, a journalism professor at Quinnipiac University in Connecticut, and a former reporter and editor.

"You can't expect a watchdog to bite the hand that feeds it," he said.

The state's Department of Economic and Community Development is offering tax breaks, training funds, financing opportunities and other incentives for publishers, but not cash.

"We're not saying 'Come to Bristol, come to New Britain, we'll give you a million dollars,'" Nicastro said.

The lifeline comes as U.S. newspaper publishers such as the New York Times, Tribune and McClatchy deal with falling advertising revenue, fleeing readers and tremendous debt.

Aggravating this extreme change is the world financial crisis. Publishers have slashed costs, often by firing thousands in a bid to remain healthy and to impress investors.

Any aid to papers could gladden financial stakeholders, said Mike Simonton, an analyst at Fitch Ratings.

"If governments are able to provide enough incentives to get some potential bidders off the sidelines, that could be a positive for newspaper valuations," he said.

NEWSPAPERS ARE DIFFERENT

Many media experts predict that 2009 will be the year that newspapers of all sizes will falter and die, a threat long predicted but rarely taken seriously until the credit crunch blossomed into a full-fledged financial meltdown.

Some papers no longer print daily, and some not at all.

Even as industries deemed too important to fail are seeking bailouts, most newspaper publishers have refused to give serious thought to the idea, though some industry insiders recounted joking about it with other newspaper executives.

"The whole idea of the First Amendment and separating media and giving them freedom of control from the government is sacrosanct," said Digby Solomon, publisher of Tribune Co's Daily Press in Newport News, Virginia.

Former Miami Herald Editor Tom Fiedler said that a democracy has an obligation to help preserve a free press.

"I truly believe that no democracy can remain healthy without an equally healthy press," said Fiedler, now dean of Boston University's College of Communication. "Thus it is in democracy's interest to support the press in the same sense that the human being doesn't hesitate to take medicine when his or her health is threatened."

Connecticut does not see trying to find a buyer and offering tax breaks as exerting influence on the press, said Joan McDonald, the economic development commissioner.

"It is what we do ... with companies whether it's in aerospace, biomedical devices, biotech or financial services," she said. "If a company is developing laser technology, we don't get into the business of what lasers are used for."

Connecticut's actions are not the first time government has helped newspapers. The U.S. Postal Service has offered discounted postage rates. Several cities have papers running under Joint Operating Agreements, created following the congressional Newspaper Preservation Act of 1970 to keep competing urban dailies viable despite circulation declines.

But the press is not the same as other businesses, said veteran newspaper financial analyst John Morton. "You're doing something that has a bearing on political life," he said.

Marc Levy, executive editor of the Herald and the Press, said he would not let gratitude get in the way of reporting on local political peccadilloes.

"It's the brutal reality," he said. "You'd say, 'thank you very much for helping me with that, but now we have to ask you about this thing.'"

The problem is that print newspapers cannot last. Television and online newspapers can and do fill the need for most people and that is a trend that will continue. Stop killing trees and convert to electronic delivery.

:2cents:

The problem is that print newspapers cannot last. Television and online newspapers can and do fill the need for most people and that is a trend that will continue. Stop killing trees and convert to electronic delivery.

:2cents:

Mike, Happy new year btw!

Can you see now why many were opposed to the bank and auto bailouts (I know we had some disagreement on the auto one specifically)?

All we have done is set the stage for each and every industry to stand in line for their share of tax payer funded handouts.

I think we need newspapers and print journalists, but I absolutely don't want to see government intervention and backing. It is a big shame what's happening to newsrooms (shrinking) and the number of wires, etc and it could create a dangerous shortage of investigation and information, but government involvement in the media even just through money, is too close to government influencing and controlling the media... and that is a dangerous thing.

Newspapers will have to find a way to eevolve. They need to become googles... conduits of info that people constantly go to and trust. I do think the physical newspaper is on life support and probably will die at some point. The problem is how do you do that with enough profitability to sustain a good newsroom and pay the reporters and keep the quality high. It's not an easy problem. We've all probably noticed the difference in our papers over the last twenty years. Even the Post, which is still a high quality newspaper has so much less content than it used to.

Last thought, the other big problem is the "too big" problem we are seeing in so many industries. There are too few independent news organizatons and too many near monopolistic giants. All of these are dangerous things. Too few voices, lead to certain stories being missed (not enough staff, not enough broadcast time, not sexy enough) or avoided. An uninformed nation is one at risk.

Mike, Happy new year btw!

Can you see now why many were opposed to the bank and auto bailouts (I know we had some disagreement on the auto one specifically)?

All we have done is set the stage for each and every industry to stand in line for their share of tax payer funded handouts.

Happy new year.

But NO. Every case is different.

Newspapers have been failing for the past ten years because of the internet. All the money in the world will not change the fact that less people read print newspapers every year. People DO and will continue to need loans and cars. Now if someone develops a teleportation machine that makes cars obsolete you might have a case that the two cases are similar. Until then, It's apples to onions.

Then there is also the impact of the failure of newspapers compared to the auto industry on the nations economy. Newspapers... minimal. Auto Industry... MASIVE AND CATASTROPHIC.

I think we need newspapers and print journalists, but I absolutely don't want to see government intervention and backing. It is a big shame what's happening to newsrooms (shrinking) and the number of wires, etc and it could create a dangerous shortage of investigation and information, but government involvement in the media even just through money, is too close to government influencing and controlling the media... and that is a dangerous thing.

Newspapers will have to find a way to eevolve. They need to become googles... conduits of info that people constantly go to and trust. I do think the physical newspaper is on life support and probably will die at some point.

There are still plenty of jobs for the journalists. If anything there are more than ever. The majority of jobs that are lost are from the presses down to delivery.

What is needed is a better electronic format for local news. As TV becomes more interactive it would be nice to see newspapers delivered on your big screen TV. See and article you want to save? Click to store it. Need a hard copy of that story or a coupon? Select and print.

Newspapers are dying as a result of progress, not mismanagement.

BIG difference.

Do not bail them out.

Could you imagine this attitude around the turn of the last century? We'd still be floating the horse carriage industry and makers of hoop skirts.

~Bang

There are still plenty of jobs for the journalists. If anything there are more than ever. The majority of jobs that are lost are from the presses down to delivery.

.

I haven't seen that from the ground level. Newsrooms have shrunk terribly and are smaller than ever. If you count blogging as journalism and some are... there are lots of people out there. When I've been at the National Press Club recently it's been a pretty bleak place with a lot of vets who are out of work with no prospects in sight.

Now, there's plenty of work for journalists, but a tremendous ammount of it is unpaid. Underpaid is a different question, b/c that's an issue of market forces, ego, and belt tightening, but you'd be amazed how many are paying their journalists "zero"

I haven't seen that from the ground level. Newsrooms have shrunk terribly and are smaller than ever. If you count blogging as journalism and some are... there are lots of people out there. When I've been at the National Press Club recently it's been a pretty bleak place with a lot of vets who are out of work with no prospects in sight.

Now, there's plenty of work for journalists, but a tremendous ammount of it is unpaid. Underpaid is a different question, b/c that's an issue of market forces, ego, and belt tightening, but you'd be amazed how many are paying their journalists "zero"

Well if that's the case, it's a damn shame and I'm sure part of the reason newspapers are failing. It's a lesson the internet world learned from the beginning. Content rules. The fat needs to be trimmed from a delivery method that is out of date and wasteful.

I'm sure you will agree though that this is a different case than the auto bailouts and should be treated as such.

The problem is that print newspapers cannot last. Television and online newspapers can and do fill the need for most people and that is a trend that will continue. Stop killing trees and convert to electronic delivery.

:2cents:

well unless you are going to start puttng a television or wifi in every bathroom in business office bathrooms and homes I dont think it will ever fully go away.

well unless you are going to start puttng a television or wifi in every bathroom in business office bathrooms and homes I dont think it will ever fully go away.

Funny you should mention that. I read the news on my iPhone in the office bathroom pretty much every day.

And wifi or something like it will will have nearly 100% coverage within 5-10 years. So you were saying?

Funny you should mention that. I read the news on my iPhone in the office bathroom pretty much every day.

And wifi or something like it will will have nearly 100% coverage within 5-10 years. So you were saying?

try taking a duece with a laptop on your lap.

thats what im saying!!

your iphone now smells like poop and has fecal matter on it. and now so does your ear.

As long as we bailout the gas lighting industry next.

Newspapers are dying as a result of progress, not mismanagement.

BIG difference.

Do not bail them out.

Could you imagine this attitude around the turn of the last century? We'd still be floating the horse carriage industry and makers of hoop skirts.

~Bang

I couldnt resist posting this since you mentioned it. I really appreciated the satire

http://www.nolanchart.com/article5482.html

Carriage Manufacturers to Request Part of $700K Bailout

--------------------------------------------------------------------------------

Horse related industries fight for survival against Henry Ford's Model T automobile. Request a portion of $700K bailout money.

--------------------------------------------------------------------------------

by The Biss

(libertarian)

Sunday, November 16, 2008

Ashland County, WI -- Citing rising competition from the new Model T horseless carriage, carriage and wagon manufacturer and Wisconsin state senator AW Sanborn has petitioned Congress for an appropriation of the $700 thousand bailout.

Hardline opponents of the wagon bailout brand the horse-powered transportation industry as a "relic of a former time."

"Hank Ford is doing a major disservice to the transportation industry," said Sen. Sanborn in a press conference from his Ashland county estate. "Think of the repercussions from the failure of our business. This will not just affect buggy manufacturers like myself, but an entire support industry."

Lincoln McSweeney of the Ashland Co. Farrier's Union agrees. "Think of all the people that will be out of work if this newfangled Tin Lizzy catches on. Farriers are reliant on horses for our business. So are teamsters, blacksmiths, wainwrights, and tack makers. If you're out plowing a field and need a new terret, good luck finding it if we're out of business!"

"Horses are an integrated part of our economy," counters Sen. Sanborn, "and horses come in other colors than black."

US Senator Julius C. Burrows (R-Michigan) said it would be a mistake to use any of the rescue money to prop up the carriage makers because a bailout would only postpone the industry's demise.

"Companies fail everyday and others take their place. I think this is a dirt road we should not go down," said Burrows. "They're not building the right products," he said. "They've got good workers but I don't believe they've got good management. They don't innovate. They're a 'behemoth' in a sense."

Here is another good one using the Piano industry (true stuff too)

http://www.lewrockwell.com/tucker/tucker115.html

try taking a duece with a laptop on your lap.

thats what im saying!!

your iphone now smells like poop and has fecal matter on it. and now so does your ear.

For those of us who don't wipe with our bare hands and then handle our phone, it's not a problem.

Here is another good one using the Piano industry (true stuff too)

http://www.lewrockwell.com/tucker/tucker115.html

Seriously. What a pile of horse****. Comparing the piano industry to the car industry? :rotflmao:

Try reading something other than your usual ideological propaganda.

Seriously. What a pile of horse****. Comparing the piano industry to the car industry? :rotflmao:

Try reading something other than your usual ideological propaganda.

Wow, I dont think I've had many worse encounters with jackarse posters than I have with you. Nice way to be cool on a holiday, jerk.:doh:

Try reading a bit on history sometime and you may actually learn something.

anyway, I wont continue to stoop to your assinine and immature level. so in that vein, I hope that you have an awesome holiday today and that you can find a way to get over whatever bitterness you are clinging to and actually enjoy it.

Wow, I dont think I've had many worse encounters with jackarse posters than I have with you. Nice way to be cool on a holiday, jerk.:doh:

Try reading a bit on history sometime and you may actually learn something.

anyway, I wont continue to stoop to your assinine and immature level. so in that vein, I hope that you jave an awesome holiday today and that you can find a way to get over whatever bitterness you are clinging to and actually enjoy it.

WTF? Touchy much?

Seriously man. This has nothing to do with bitterness. The concept of comparing the auto industry to the piano industry is laughable. I'm sorry you cant see that but I'm not going to pretend it isn't a silly argument just to make you feel better.

You seem like a really nice guy. But you really seem like a cult follower in your unquestioning belief in libertarian ideology and anyone who writes or speaks from that perspective. I'm not saying that to be mean. I'm saying it as constructive criticism to try to open your eyes to the fact that NO ideology has all of the answers and they should all be questioned.

WTF? Touchy much?

Seriously man. This has nothing to do with bitterness. The concept of comparing the auto industry to the piano industry is laughable. I'm sorry you cant see that but I'm not going to pretend it isn't a silly argument just to make you feel better.

You seem like a really nice guy. But you really seem like a cult follower in your unquestioning belief in libertarian ideology and anyone who writes or speaks from that perspective. I'm not saying that to be mean. I'm saying it as constructive criticism to try to open your eyes to the fact that NO ideology has all of the answers and they should all be questioned.

well, considering that it was YOU that decended into petty argumentatve posting in this thread, despite my going out of my way to be cordial with you in the my first post directed to you, maybe you should reflect upon your internet persona and how it is perceived by others?

as to blindly following an ideology, I cant see how you could even bring it up in this thread since libertarianism nor paleo-conservatism was never once mentioned. You have some form of vendetta against anyone who doesnt see through your BMW driving, Big 3 saving, big government lens.

Lastly, referencing one of the dominant industries form the pre-automobile era is certainly germain to the topic on government "saving" an industry, regardless of your opinion on it's validity.

so to close, again, happy new year, put a smle on your face and abandon your negativity on this wonderful holiday!

I'm too big to fail (especially after this holiday). The good news is it would only take a couple of million to bail me out. I'm good at investing.

Well if that's the case, it's a damn shame and I'm sure part of the reason newspapers are failing. It's a lesson the internet world learned from the beginning. Content rules. The fat needs to be trimmed from a delivery method that is out of date and wasteful.

I'm sure you will agree though that this is a different case than the auto bailouts and should be treated as such.

Yeah, I don't think they should be bailed out... More, because I'm wary of first amendment freedom. It is always more difficult to criticize and be objective about the company that is paying the bills or that you need to pay a bill.

well, considering that it was YOU that decended into petty argumentatve posting in this thread, despite my going out of my way to be cordial with you in the my first post directed to you, maybe you should reflect upon your internet persona and how it is perceived by others?

as to blindly following an ideology, I cant see how you could even bring it up in this thread since libertarianism nor paleo-conservatism was never once mentioned. You have some form of vendetta against anyone who doesnt see through your BMW driving, Big 3 saving, big government lens.

Lastly, referencing one of the dominant industries form the pre-automobile era is certainly germain to the topic on government "saving" an industry, regardless of your opinion on it's validity.

so to close, again, happy new year, put a smle on your face and abandon your negativity on this wonderful holiday!

No, You just referenced a link from a libertarian website by a libertarian author that tried to compare the auto industry to the piano industry. This thread like ever one you start is based on your belief in libertarian ideology. Don't try to pretend it isn't.

A collapse of the auto industry could mean the loss of over 3 million jobs. How many people did the piano industry employ? Was the piano industry collapse in the middle of a world wide economic crisis?

Here's a little light reading.

http://www.allbusiness.com/marketing/market-research/684033-1.html

ECONOMIC CONTRIBUTIONS OF THE AUTOMOBILE INDUSTRY TO THE U.S. ECONOMY from the Center for Automotive Research says the automobile industry "drives the U.S. economy on many different levels." Total auto industry and related employment equals 13.3 million, with 6.6 million jobs connected to auto manufacturing. New vehicle sales generated $240 billion in private-sector compensation. New vehicle production, sales and jobs related to the use of automobiles are responsible for one out of every 10 jobs in the U.S. Measured in 1996 dollars, automotive output increased by 51 percent between 1987 and 2002. The auto sector has a big impact on other industries including:

Steel: In 2001, the typical car contained 1,781 pounds of steel, or 41 percent of the vehicle's weight. The auto industry used 14 million tons of steel in 2001, accounting for 14 percent of U.S. steel consumption.

Iron: In 2001, the typical car contained 345 pounds of iron or 10 percent of the vehicle's weight. The auto industry used 3 million tons of iron in 2001, 31 percent of U.S. iron consumption.

Aluminum: In 2001, the typical car contained 256 pounds of aluminum or 8 percent of the vehicle's weight. The auto industry used 3.95 million tons of aluminum in 2001, accounting for 32 percent of U.S. aluminum consumption.

Copper & Brass: In 2001, the typical car contained 46 pounds of copper and brass, 1 percent of the vehicle's weight. The auto industry used 737 million pounds of copper in 2001, or 9 percent of total U.S. copper consumption.

Zinc: In 2001, the typical car contained 11 pounds of zinc. The auto industry used 241,500 tons of zinc in 2001, accounting for 23 percent of U.S. zinc consumption.

Plastics: In 2001, the typical car contained 253 pounds of plastic or 8 percent of the vehicle's weight. The auto industry used 1.99 million tons of plastic in 2001, accounting for 3.9 percent of U.S. plastic consumption.

Rubber: In 2001, the typical car contained 145.5 pounds of rubber or 4 percent of the vehicle's weight. The auto industry used 1.945 million metric tons of rubber 68 percent of U.S. rubber consumption.

Electronics: The average vehicle contains between 40 and 50 microprocessors. Electronic components comprise 7.6 percent of the component value, or $12.4 billion for the year 2000, or about $970 per vehicle produced in the United States.

Paint: The auto industry used more than 100 million gallons of paint in 2001, worth $2.9 billion. The auto industry's use of paint represents about 8.4 percent of all paint purchased in the U.S.

Glass: In 2001, the typical car contained 98.5 pounds of glass, or 3 percent of the vehicle's weight. The auto industry used 1.24 million tons of glass in 2001, accounting for 23 percent of U.S. glass consumption.

Heating and Cooling: The auto industry used more than $1.2 billion worth of air conditioning systems in 2001.

Textiles: The auto industry used 482 million square yards of textiles in 2001, accounting for 1 percent of U.S. textile consumption.

The study can be downloaded at http://www.autoailiance.org.

And finally let me point out that I never got personal with you in this thread. I laughed at the content of the article you referenced. You, on the other hand did. Yeah, have a nice day.

The problem is that print newspapers cannot last. Television and online newspapers can and do fill the need for most people and that is a trend that will continue. Stop killing trees and convert to electronic delivery.

:2cents:

Agreed. I started out in the print journalism field and they're downsizing big time.

My sister works for a major print publication in Texas and they've been cutting jobs for the last 5 years or so.

Internet news is definitely the future.

No, You just referenced a link from a libertarian website by a libertarian author that tried to compare the auto industry to the piano industry. This thread like ever one you start is based on your belief in libertarian ideology. Don't try to pretend it isn't.

A collapse of the auto industry could mean the loss of over 3 million jobs. How many people did the piano industry employ? Was the piano industry collapse in the middle of a world wide economic crisis?

Here's a little light reading.

http://www.allbusiness.com/marketing/market-research/684033-1.html

And finally let me point out that I never got personal with you in this thread. I laughed at the content of the article you referenced. You, on the other hand did. Yeah, have a nice day.

Hmmm, I assume that most, if not all posters here start threads having something to do with their beliefs and opinions. Isnt that what a message board is traditionally used for? That still doesnt cover any claims of my "blindly" following an ideology, it's simply a statement of beliefs as a whole. There is nothing "blind" about it.

as to the comparrison, who siad it was a perfect one anyway? Only that it is an apt analogy.

If you look at the proportion of the industry employment as compared to all others, then yep, still germain. Unless you are actualy trying to claim that the piano industry wasnt one of the largets of the era, which I know you must be smarter than that. Also, the piano industry started to bomb in an era that was on the verge of major economic negative conditions, did you forget about that whole early 30's mess already? nice attempt though!

rolleyes all you like dude, it doesnt change the negative personal track that you decended upon exclusively. But thanks for the wish for a nice day! It's been great!

try taking a duece with a laptop on your lap.

Some of us already do :paranoid: