Maybe The Horse Isn’t Dead Yet…

My friend Morton Marcus–an Indiana columnist who was for many years the Director of   the Indiana Business Research Center–used a recent column to weigh in on the plight of local journalism. As he noted, one of the major causes of the decline of local news outlets has been the displacement of private financing “from independent, local entrepreneurs to large corporate chains that “trimmed” costs.”

“Trimmed ” is a very nice word for the ferocious and destructive cost-cutting that has virtually killed local news– the very product those outlets were selling.

As Morton noted (I got this in an email, so no link–sorry)

Corporations behave like individuals; they seek to avoid the risks of change and the challenges of diversity. Therefore, editors who accept the risk of divergent views are best removed. Reporters who impede corporate strategy are best discharged. Radio and TV stations are bought and stripped of their distinctive local content.
Given lower costs of production, newspaper and magazine offices, TV and radio stations, housing older equipment, with their associated personnel, become unnecessary drags on profits. A conglomerate can morph an enterprise from news and reasoned commentary into a conveyor of entertainment and sensationalism. “Efficiency” of the corporation often out-weighs the quality and nature of the product.

Lest you think Morton’s column was merely another flogging of that “dead horse” along the lines of my post yesterday, you will be happy to learn that he ended with some very good news: the introduction of companion measures in both the House and Senate titled “The Local Journalism Sustainability Act.”

The bill is intended to provide a “pathway to financial viability” for local news produced by newspapers–including all-digital ones–plus television and radio. The mechanism through which this is to be achieved is a combination of three tax credits: a credit aimed at incentivizing subscribers; a credit to provide news outlets an increased ability to hire and retain journalists; and a credit intended to encourage small businesses to advertise in these local news outlets.

The individual credit for subscribers is described as a five-year credit of up to $250 annually, available to individuals who either subscribe to a local newspaper or donate to a nonprofit news organization. It would cover 80% of those costs the first year, and 50% in four subsequent years.

The effort is billed as bipartisan, which–if accurate–should increase its chances of passage.

Will these tax credits work to stem the bleeding? Who knows? I have my concerns about the use of tax incentives, which tend to add to the complexity of America’s tax system, and where “goodies” intended to reward donors can be shielded from the light of day. On the other hand, there are–as I have recently noted–examples of the successful use of such incentives to prompt socially beneficial behaviors.

Perhaps the most significant positive aspect of this effort is that it signals recognition of the problem. If this particular measure doesn’t pass–or fails to stem or reverse the decline of local news–that recognition is a sign that other interventions are likely to be tried.

The importance of that–the importance of agreement over the existence of a problem–is hard to overstate.

There really is no problem we humans cannot address more or less successfully, once there is broad agreement on the existence and nature of a problem.We see this most vividly as we confront climate change and regret the years wasted–the years during which we might have avoided what is now unavoidable–because too many people refused to admit the existence and nature of the threat. We are seeing it in the insistence by right-wingers who refuse to get vaccinated that COVID is a “hoax.”

We can’t solve problems we refuse to see.

What is most heartening about the Local Journalism Sustainability Act is its recognition of the importance of credible, comprehensive local news sources, and the determination to keep that horse alive.

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The Problem Isn’t “Fake” News–It’s No News

The Indianapolis Business Journal reports that former Indiana Lieutenant Governor John Mutz has made a two million dollar gift to Northwestern University’s Medill School of Journalism. The gift will establish a Chair in Local News that will focus on local news sustainability–a focus that is desperately needed. 

The article quoted Mutz’ reasoning:

My political experience has dramatically shown me how important reliable local news sources are to local governments and economies,” Mutz, 85, told IBJ. “Without it we may lose our democratic society and that would be a tragedy. I’m greatly concerned about local communities that are essentially news deserts. 

I have frequently posted about the dire consequences of this lack of local news. Not only do communities lose a necessary government watchdog, they lose an essential aspect of being a community.

In October, the Washington Post ran an article exploring one such “news desert”–following the loss of a small community’s only newspaper. Ashley Spinks had been the managing editor, and most recently the only journalist, at a weekly newspaper in a rural community in Virginia’s Blue Ridge Mountains. As the article noted,

Spinks took photos of the first day of school, laid out the newspaper and edited freelance pieces. She attended Floyd town council meetings, covered Confederate monument debates, did award-winning reporting on the water system problems and wrote news-you-can-use pieces, like the one helpfully headlined “Don’t feed the bears!”

Spinks had been interviewed by a local public radio outlet about cuts made to the paper after it was acquired by a corporate owner, Lee Enterprises. When she responded candidly, she was summarily fired, and Floyd lost its local news. As the report notes, Floyd is not alone. A recent study found that some 6,000 journalism jobs and 300 newspapers have simply vanished since 2018, and more outlets are disappearing since the onset of the pandemic-related recession.

Floyd’s Mayor told the Post that the newspaper had been the primary source of information on what’s happening in local government, and shared his concerns about citizens turning to unvetted social media posts for information.

Washington Monthly recently ran a series titled “Can Journalism be saved?”After repeating the statistics on journalism jobs lost and newspapers lost, the first article in the series reminded readers that the losses were industry-wide.

The damage ranges from the shutting-down of quality national magazines like Governing and Pacific Standard to large layoffs at online outlets like BuzzFeed and VICE. But the greatest shrinkage is happening at the local level, among large metropolitan dailies, neighborhood and small-town weeklies, and outlets that have long covered Black, Hispanic, and other minority and ethnic communities. As of last year, two-thirds of counties in America lacked a local daily newspaper. Half had only one newspaper, often just a weekly. And more than 200—mostly poor, rural counties—had none at all. Those news outlets that remain are often what are referred to as ghost papers, with few staff and little local reporting. (Local TV news has declined far less, but tends to cover stories that newspapers originate, and with less depth.)

The only remaining newspaper in Indianapolis, The Indianapolis Star, is one of those “ghost” papers. The Star was never a great newspaper, but years of corporate ownership have decimated editorial staff and stripped it of what reporting depth it may once have had.

The decline in what one scholar has called “the journalism of verification’ has been toxic to the functioning of American democracy.

One study found that in communities where newspapers close and there are no reporters keeping an eye on the decisions of local officials, municipal government wages, deficits, and borrowing costs rise. Local news outlets tend to be far more trusted by readers on both sides of the political aisle than national publications. When they disappear, citizens turn to national news sources, often partisan ones, or rely on social media for information. The result is more party-line voting and small-town residents mobilizing against mythical antifa infiltrations. Indeed, as this magazine has reported, the rise of authoritarian politics in America correlates to an alarming degree with the waning of local news.

When there isn’t a trusted source of local news that also carries some verified national reporting, it becomes much easier to construct an information bubble from social media posts and internet conspiracy sites.

The Washington Monthly series identifies several ways government might reinvigorate journalism without jeopardizing editorial independence–much as the Founders did by establishing favorable postal rates for newspapers.

Whatever the mechanism, a solution is  critical and overdue. 

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This Is Very Good News

It’s hard these days not to focus on what’s stupid, corrupt and/or depressing. In fact, I find it hard to avoid news that gives me heartburn.

Nevertheless, there are also nuggets of hopefulness available, as I was reminded when I came across this announcement from the Knight Foundation.

MIAMI—Feb. 19, 2019—The John S. and James L. Knight Foundation today announced that it would double its investment in strengthening journalism to $300 million over five years, with a focus on building the future of local news and information, which are essential for democracy to function.

Knight called on individual and institutional funders to join in this opportunity to rebuild trust and foster sustainability in journalism, an essential democratic institution, starting on the local level.

Knight’s initial investments are in scalable organizations committed to serving communities at the local level — all of which are seeking additional support. These organizations are building new business models, strengthening investigative reporting, protecting press freedom, promoting news literacy, and connecting with audiences through civic engagement and technology.

Regular readers of this blog are familiar with–and probably tired of–my frequent complaints about the demise of local journalism (just this week, we learned that Indianapolis’ alternative newspaper is also ceasing publication), and the negative effects that the void of local coverage has had on local government.

The causes and consequences of the collapse are not a mystery; and the Knight announcement spelled them out.

Newsrooms across the nation have been decimated by the collapse of traditional business models brought on by the impact of digital technology and social media, which have drawn readers and advertisers to other information sources on the internet. As a result, many communities have turned into news deserts, with little or no local reporting.

“Without revenue, you can’t pay reporters. Without reporters, you can’t develop consistently reliable news reports about what’s happening in your town. Without that reliable news report, you can’t figure out how to run local government. It isn’t rocket science,” said Alberto Ibargüen, Knight Foundation president. “We’re not funding one-offs. We’re helping to rebuild a local news ecosystem, reliable and sustainable, and we’re doing it in a way that anyone who cares can participate.”

The Knight Foundation was created and funded by a once-vibrant news organization, and this initiative will seek new ways–collaborative, digital, and local–to reinvigorate journalism at the community level. The grants will support several national organizations that serve as important resources for local efforts, including the American Journalism Project, Pro-Publica, Report for America and FrontlinePBS; it will also provide resources for defense of the First Amendment, tripling the number of lawyers working on local First Amendment issues and expanding the network of local attorneys available to provide pro bono legal support.

Equally important–and welcome–is the funding allocated to important efforts to bolster what we now call “news literacy,” the battle against disinformation and propaganda.

And finally,

Knight is investing an additional $35 million in research to support the creation and expansion of research centers around the United States. This research will study the changing nature of an informed society in America and will help build an emerging field of study to address pressing questions about the health of an informed society and citizenry in the digital age.

Citizens can only act on the basis of what they know. An absence of credible information–or worse, its displacement by dishonest or manufactured information–makes democratic self-government impossible.

Democratic participation requires accurate and complete information.  I can think of very few initiatives more important than this one.

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