An Ill-Advised New Hampshire Bailout
The state of New Hampshire is guaranteeing 75 percent of a $250,000 loan made to Eagle Printing & Publishing LLC, owner of the Eagle Times, a newspaper located in that state. New Hampshire would be liable for $187,500 in case of default. (1) New Hampshire's action is ill-advised for two reasons.
The financial woes of the Eagle Times are shared by most newspapers in the United States. The media is evolving. The internet and cable news have become the sources of choice for many. That is particularly true for younger customers. The media is not disappearing. It is simply transforming by responding to technological and market influences.
Change is endemic to business. Tractors replaced horse drawn plows, word processors supplanted manual typewriters and autos replaced stage coaches. It's progress. The makers of plows, manual typewriters and stage coaches did lose their jobs. History shows that new products generate new jobs. New jobs in the media have been created through the internet even as some are lost within the print media. New Hampshire is on the wrong side of history.
New Hampshire's decision also highlights a clear conflict of interest. The state acquires enhanced influence over individuals and enterprises dependent on its assistance. This is particularly troubling when the dependent party is part of the media. The value placed by the founding fathers on a free press was expressed when they enacted the First Amendment. That value judgment has been vindicated over the course of time. An independent press ensures readers that information will not be tainted by a fear of government. Fear may be too strong a term to describe the relationship of a debtor to a loan guarantor but need and independence are conflicting relational characteristics. The press should avoid even the appearance of a conflict of interest.
One other caveat is in order. Don't short circuit ingenuity with stifling governmental policies. The Asbury Park Press is a newspaper published in central New Jersey. It's a large daily paper covering multiple topics and has experienced the financial pressures felt by traditional newspapers throughout the country. The company developed a strategy which may become a blueprint for other companies. Rather than abandon the print media the Asbury Park Press has found a niche by publishing multiple newspapers. Each is a mini-edition devoted to a particular community. Production costs are lowered and readers know they have a uniquely local news source. This is the type of response prompted by human ingenuity and stifled by bureaucracy . Those who govern us take heed. Don't stand in the way of history or our ability to adapt.
Footnote
1. ‘State to fund loan to save ailing newspaper’ by John P. Gregg; The Telegraph; http://www.nashuatelegraph.com/News/427626-196/state-to-fund-loan-to-save-ailing.html
The financial woes of the Eagle Times are shared by most newspapers in the United States. The media is evolving. The internet and cable news have become the sources of choice for many. That is particularly true for younger customers. The media is not disappearing. It is simply transforming by responding to technological and market influences.
Change is endemic to business. Tractors replaced horse drawn plows, word processors supplanted manual typewriters and autos replaced stage coaches. It's progress. The makers of plows, manual typewriters and stage coaches did lose their jobs. History shows that new products generate new jobs. New jobs in the media have been created through the internet even as some are lost within the print media. New Hampshire is on the wrong side of history.
New Hampshire's decision also highlights a clear conflict of interest. The state acquires enhanced influence over individuals and enterprises dependent on its assistance. This is particularly troubling when the dependent party is part of the media. The value placed by the founding fathers on a free press was expressed when they enacted the First Amendment. That value judgment has been vindicated over the course of time. An independent press ensures readers that information will not be tainted by a fear of government. Fear may be too strong a term to describe the relationship of a debtor to a loan guarantor but need and independence are conflicting relational characteristics. The press should avoid even the appearance of a conflict of interest.
One other caveat is in order. Don't short circuit ingenuity with stifling governmental policies. The Asbury Park Press is a newspaper published in central New Jersey. It's a large daily paper covering multiple topics and has experienced the financial pressures felt by traditional newspapers throughout the country. The company developed a strategy which may become a blueprint for other companies. Rather than abandon the print media the Asbury Park Press has found a niche by publishing multiple newspapers. Each is a mini-edition devoted to a particular community. Production costs are lowered and readers know they have a uniquely local news source. This is the type of response prompted by human ingenuity and stifled by bureaucracy . Those who govern us take heed. Don't stand in the way of history or our ability to adapt.
Footnote
1. ‘State to fund loan to save ailing newspaper’ by John P. Gregg; The Telegraph; http://www.nashuatelegraph.com/News/427626-196/state-to-fund-loan-to-save-ailing.html
Labels: Government Policies
posted by Paul Williamson at
7:12 PM
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