Special Status of the Press

• 1st Amendment Protections

• Special laws (shield laws)

• How do we justify this status?

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

The First Amendment

• Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

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?

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

Propaganda is not always obvious

• Media are in private hands

• There appears to be competition

• Occasionally media attack government or corporations

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

Media Concentration

• The dangers of concentration (CJR)

• The Big Five, an American keiretsu

• Consolidation of service and content providers– Add internet access to the new mix

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)

A Culture of Experts

• Talking heads and the ‘punditocracy’

• Small cadre of mediagenic quasi-experts

“Flak” as a Tool of Discipline

• Press attacks government, right attacks press

• Conservative ‘media watchdog’ groups

The Religion of the Market

• The rhetoric of free markets is one thing, the reality of markets is quite another

Markets, Market Assumptions, And The Invisible Hand

The Market Society (17th Century)

• Emphasis of individualism (autonomy)

• The sovereign consumer

• The law of supply and demand

Supply and Demand

• Elasticity of supply and demand

• Price elasticity

• Marginal costs and marginal benefits (utility at the margins)

The Market Society (17th Century)

• Emphasis of individualism (autonomy)

• The sovereign consumer

• The law of supply and demand

• Markets, essentially unregulated businesses, benefit society

Business is to be considered as an autonomous and independent activity because it will then serve society

• Robert Solomon

Markets and Freedom

• Free markets are possible only within a broader context of FREEDOM

• Freedom allows capitalism to work

Economic and Political Freedoms

• Which take priority?

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

Market Assumptions

• Perfect Information

• Perfect Competition

Competitive Markets are Characterized By:

• Low costs of entry

• Low costs of exit

• Absence of monopolies

Market Assumptions

• Perfect Information

• Perfect Competition

• Mobility Factors

• Firms Maximize Profits, Consumers Maximize Utility

• Consumer Preferences are Exogenous

• Few, If Any, Externalities

Markets, Market Assumptions, And The Invisible Hand

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

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