Special Status of the Press 1 st Amendment

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Special Status of the Press • 1 st Amendment Protections • Special laws (shield

Special Status of the Press • 1 st 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

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,

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

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

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

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

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

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

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

A Culture of Experts • Talking heads and the ‘punditocracy’ • Small cadre of mediagenic quasiexperts

“Flak” as a Tool of Discipline • Press attacks government, right attacks press •

“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 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

Markets, Market Assumptions, And The Invisible Hand

The Market Society (17 th Century) • Emphasis of individualism (autonomy) • The sovereign

The Market Society (17 th 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

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

The Market Society (17 th Century) • • Emphasis of individualism (autonomy) The sovereign

The Market Society (17 th 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

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

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?

Economic and Political Freedoms • Which take priority?

Marx and Capitalists Agree on the Importance of Freedom • Capitalists emphasize the freedom

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

Market Assumptions • Perfect Information • Perfect Competition

Competitive Markets are Characterized By: • Low costs of entry • Low costs of

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

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

Markets, Market Assumptions, And The Invisible Hand

The Invisible Hand • Individuals, seeking their own self interest, providing good products at

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

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

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