Special Status of the Press

1. Special Status of the Press • !st Amendment Protections • Special laws (shield laws) • How do we justify this status?

2. Role of Press in a Democracy • Democracy can’t function without informed, critical citizens • The press is the main informer of the public • Jefferson—A free nation requires a free press

3. In the modern world of corporate press, does the press fulfill the role that justifies its special status? • Is the modern press (or mass media) more a lap dog for corporate interests than a watchdog?

4. Herman and Chomsky’s Propaganda Model • Mass media is a tool for communicating messages to the public • Function includes: amuse, entertain, inform, socialize (assimilate) people into institutions • In a diverse society, this requires propaganda

5. Propaganda is not always obvious • Media are in private hands • There appears to be competition • Occasionally media attack government or corporations

6. Key Elements of Propaganda • Size, concentrated ownership, wealth & power of owners of mass media • Advertising as the primary source of income • A culture of ‘experts’ • ‘Flak’ as a tool of discipline • ‘Civic religion’ of anti-communism and free markets

7. Media Concentration • The dangers of concentration (CJR) • The Big Six, an American keiretsu • Consolidation of service and content providers • Add internet access to the new mix

8. Advertising as the Primary Source of Income • The problem with advertising revenue—MS and ‘complementary copy’ • Subscription funded media can’t compete despite superior products and higher customer satisfaction • Delivering targeted audiences • Killing stories (PEW study)

9. A Culture of Experts • Talking heads and the ‘punditocracy’ • Small cadre of mediagenic quasi-experts

10. “Flak” as a Tool of Discipline • Press attacks government, right attacks press • Conservative ‘media watchdog’ groups

11. The Religion of the Market • John Stossel quote in McChesney p. 44 • The rhetoric of free markets is one thing, the reality of markets is quite another

12. Markets, Market Assumptions, And The Invisible Hand

13. The Market Society (17th Century) • Emphasis of individualism (autonomy) • The sovereign consumer • The law of supply and demand

14. Supply and Demand • Elasticity of supply and demand • Price elasticity • Marginal costs and marginal benefits (utility at the margins)

15. The Market Society (17th Century) • Emphasis of individualism (autonomy) • The sovereign consumer • The law of supply and demand • Markets, essentially unregulated businesses, benefit society

16. Business is to be considered as an autonomous and independent activity because it will then serve society • Robert Solomon

17. Markets and Freedom • Free markets are possible only within a broader context of FREEDOM • Freedom allows capitalism to work

18. Economic and Political Freedoms • Which take priority?

19. Marx and Capitalists Agree on the Importance of Freedom • Capitalists emphasize the freedom of individuals to pursue their own ends through the operation of markets • Marx emphasizes the freedom of an individual from coercive market forces

20. Market Assumptions • Perfect Information • Perfect Competition

21. Competitive Markets are Characterized By: • Low costs of entry • Low costs of exit • Absence of monopolies

22. Market Assumptions • Perfect Information • Perfect Competition • Mobility Factors • Firms Maximize Profits, Consumers Maximize Utility • Consumer Preferences are Exogenous • Few, If Any, Externalities

23. Markets, Market Assumptions, And The Invisible Hand

24. The Invisible Hand • Individuals, seeking their own self interest, providing good products at a fair price, are guided by an invisible hand to promote the public interest

25. BUT, Historically markets produce tremendous inequality • ‘Free trade’ advocates rarely want free trade • Markets deal poorly with values that are hard to monetize—Richard Cory