Is Bailing Out Newspapers an Economic Stimulus?

May 14th, 2009 By: Orson Buggeigh | Tags:

Technically, it is not a bail out. Washington state’s governor, Christine Gregoire, is approving a plan to extend tax breaks to the state’s newspaper publishers. The tax break is drawing mixed reviews in the Seattle Times. The Times is the last surviving paper in Seattle, the hub of the Puget Sound population center on the west side of the state. This tax break has received remarkably little national attention in the rest of the media, which is doubtless glad to have the spotlight on the Obama administrations 180 degree change on releasing photos of prisoner abuse, instead of the financial collapse of the print media which has increasingly been accused of being a house organ for the Democratic Party.

Washington state has a long history of left leaning politics, although there is a political divide, generally along the Cascade mountains. West of the Cascades, the state is largely urban, and, especially around Puget Sound, politically liberal. Much of the rural, eastern side of the state has always been politically conservative. Even so, the characterization of Washington as politically left of center is generally accurate. The population center has been west of the mountains, with a large wage-worker population that tends to be politically progressive. Consequently Washington state has tended to be more liberal than conservative in state-wide politics. Characterized by FDR’s Postmaster General in a quip as “the soviet of Washington,” the state’s concern for the well-being of its citizens has been one reason the state legislature has previously voted to give tax breaks to troubled industries, such as the timber industry, and Boeing. Liberal west side legislators could vote for these provisions arguing that these measures protected working people by protecting their jobs, while conservative east side legislators voted for them hoping to protect existing jobs and possibly grow new employment. Governor Gregoire is arguing that extending tax breaks to the newspapers is simply another case of giving a little assistance to a troubled industry of vital importance to the state. I don’t agree with her.

Firstly, the timber and aerospace industries actually produce products which are exported from the state. While some people do buy Washington newspapers in neighboring states, these are not really the primary market for either the Seattle Times or the Spokane Spokesman-Review, both of which are in trouble financially.

Secondly, the argument that a free media is essential for a democracy is overlooking the way people are now accessing information. Print media are less competitive in an age of instant reporting on line and on the air. If print goes away, that does not mean there won’t be media of some sort reporting on the news.

Thirdly, and perhaps most important from my perspective, the media should not be economically obligated to anyone. Ironically, the liberal left has long excoriated the ‘big papers’ for being unwilling to do investigative journalism and in depth reporting on stories that might anger the advertisers, usually described as ‘big business.’ Remember all the complaints about the unreliability of ‘the corporate media?’ So why should we expect a state controlled media to be especially diligent about acting as a watchdog protecting the public interest? While Governor Gregoire is not suggesting the state should own media, the tax break is problematic, precisely because it creates an appearance of obligation to the state government, even if the media people don’t consciously act in a way that favors state government. When many people have pointed to what can legitimately be perceived as widespread media bias in favor of the Democratic Party, the appearance of a state controlled media is particularly troubling. Washington state, like the nation, needs some (a lot) of journalistic sunlight on the legislative process. The appearance of a state sponsorship of the media, accurate or not, will further erode public confidence in both the state government and the media. Given the challenges facing the legislature and Governor Gregoire, as well as the media, this seems like a very poor decision.

Meanwhile, I’m going to follow up on the theme from the thirties. If Seattle really is the cultural center of the ’soviet of Washington,’ then it’s appropriate to re-name the Seattle Times. How do you think ‘Izvestia’ will look on the mast head?

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  1. Orson Buggeigh
    May 14th, 2009 at 16:00
    Reply | Quote | #1

    H-m-m-m…… The title seems to have vanished in thin air. “Is Bailing Out Newspapers an Economic Stimulus?” would work – I’m trying to remember the clever title I had for it. Oh well.

  2. Michael Merritt
    May 15th, 2009 at 02:32
    Reply | Quote | #2

    Fixed. It happens now and again…

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