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