Heros of the modern media reform movement Bob McChesney and John Nichols have a must read in the current issue of The Nation.
In it they provide a unique perspective on the current state of
American media and a revolutionary concept for building a strong
journalistic presence in the future.  Their answer? Government
Intervention.  Before you dismiss it out of hand, as many will, take a
look at the whole article.  Here are some of their suggestions for actions our
government can take to secure a strong media future. ~

Communities across America are suffering through a crisis that could leave a dramatically diminished version of democracy in its wake. It is not the economic meltdown, although the crisis is related to the broader day of reckoning that appears to have arrived. The crisis of which we speak involves more than mere economics. Journalism is collapsing, and with it comes the most serious threat in our lifetimes to self-government and the rule of law as it has been understood here in the United States.

Let’s begin with the crisis. In a nutshell, media corporations, after running journalism into the ground, have determined that news gathering and reporting are not profit-making propositions. So they’re jumping ship. The country’s great regional dailies–the Chicago Tribune, the Los Angeles Times, the Minneapolis Star Tribune, the Philadelphia Inquirer–are in bankruptcy. Denver’s Rocky Mountain News recently closed down, ending daily newspaper competition in that city.

Whole newspaper chains–such as Lee Enterprises, the owner of large and medium-size publications that for decades have defined debates in Montana, Iowa and Wisconsin–are struggling as the value of stock shares falls below the price of a single daily paper.

Time’s Walter Isaacson concludes, “It is now possible to contemplate a time in
the near future when major towns will no longer have a newspaper..”

Even Doonesbury’s Rick Redfern has been laid off from his job at the Washington Post.

Unless we rethink alternatives and reforms, the media will continue to flail until journalism is all but extinguished.

Mired in debt and facing massive losses, the managers of corporate newspaper firms seek to right the sinking ship by cutting costs, leading remaining newspaper readers to ask why they are bothering to pay for publications that are pale shadows of themselves. It is the daily newspaper death dance-cum-funeral march.

But it is not just newspapers that are in crisis; it is the institution of journalism itself. By any measure, journalism is missing from most commercial radio. TV news operations have become celebrity- and weather-obsessed “profit centers” rather than the journalistic icons of the Murrow and Cronkite eras. Cable channels “fill the gap” with numberless pundits and “business reporters,” who got everything about the last decade wrong but now complain that the government doesn’t know how to set things right.

Cable news is defensible only because of the occasional newspaper reporter moonlighting as a talking head. But what happens when the last reporter stops collecting a newspaper paycheck and goes into PR or lobbying? She’ll leave cable an empty vessel and take the public’s right to know anything more than a rhetorical flourish with her.

The Internet and blogosphere, too, depend in large part on “old media” to do original journalism. Web links still refer readers mostly to stories that first appeared in print. Even in more optimistic scenarios, no one has a business model to sustain digital journalism beyond a small number of self-supporting services. The attempts of newspapers to shift their operations online have been commercial failures, as they trade old media dollars for new media pennies.

Such a crisis demands solutions equal to the task. So what are they?

We begin with the notion that journalism is a public good, that it has broad social benefits far beyond that between buyer and seller. Like all public goods, we need the resources to get it produced. This is the role of the state and public policy. It will require a subsidy and should be regarded as similar to the education system or the military in that regard. Only a nihilist would consider it sufficient to rely on profit-seeking commercial interests or philanthropy to educate our youth or defend the nation from attack. With the collapse of the commercial news system, the same logic applies. Just as there came a moment when policy-makers recognized the necessity of investing tax dollars to create a public education system to teach our children, so a moment has arrived at which we must recognize the need to invest tax dollars to create and maintain news gathering, reporting and writing with the purpose of informing all our citizens.

So, if we can accept the need for government intervention to save American journalism, what form should it take? In the near term, we need to think about an immediate journalism economic stimulus, to be revisited after three years, and we need to think big. Let’s eliminate postal rates for periodicals that garner less than 20 percent of their revenues from advertising. This keeps alive all sorts of magazines and journals of opinion that are being devastated by distribution costs. It is these publications that often do investigative, cutting-edge, politically provocative journalism.

What to do about newspapers? Let’s give all Americans an annual tax credit for the first $200 they spend on daily newspapers. The newspapers would have to publish at least five times per week and maintain a substantial “news hole,” say at least twenty-four broad pages each day, with less than 50 percent advertising. In effect, this means the government will pay for every citizen who so desires to get a free daily newspaper subscription, but the taxpayer gets to pick the newspaper–this is an indirect subsidy, because the government does not control who gets the money. This will buy time for our old media newsrooms–and for us citizens–to develop a plan to establish journalism in the digital era. We could see this evolving into a system to provide tax credits for online subscriptions as well.

If we are going to address the crisis in journalism, we have to come up with solutions that provide us with hard-hitting reporting that monitors people in power, that engages all our people, not just the classes attractive to advertisers, and that seeks to draw all Americans into public life. Going backward is not an option; nor is it desirable. The old corporate media system choked on its own excess. We should not seek to restore or re-create it. We have to move forward to a system that creates a journalism far superior to that of the recent past.

We can do exactly that – but only if we recognize and embrace the necessity of government intervention.

The founders regarded the establishment of a press system, the Fourth Estate, as the first duty of the state. Jefferson and Madison devoted considerable energy to explaining the necessity of the press to a vibrant democracy. The government implemented extraordinary postal subsidies for the distribution of newspapers. It also instituted massive newspaper subsidies through printing contracts and the paid publication of government notices, all with the intent of expanding the number and variety of newspapers. When Tocqueville visited the United States in the 1830s he was struck by the quantity and quality of newspapers and periodicals compared with France, Canada and Britain.

It was not an accident. It had little to do with “free markets.” It was the result of public policy.

The truth is that government policies and subsidies already define our press system. The only question is whether they will be enlightened and democratic, as in the early Republic, or corrupt and corrosive to democracy, as has been the case in recent decades.  (click here to read the entire article)

John Nichols and Robert W. McChesney were the founders, with Josh Silver, of Free Press, which has launched a campaign to save the news. Their book, Saving Journalism: The Soul of Democracy, will be published by New Press in the fall.