Subsidy in the Newspaper Industry - Essay Example

? Section/# Subsidy in the Newspaper Industry The use and existence of subsidies is a topic that has garnered a great deal of discussion. The ultimate rationale behind this is the fact that subsidies and/or exemptions for tax revenue all tax base and are therefore garnered instead of the general populace itself. This very reason, a discussion and analysis of the way in which subsidies can and should be engaged is required so that the ultimate utility to follow society can be found. For purposes of this brief analysis, the author will focus upon necessity and/or exemptions from tax revenue with regards to print journalism. As a function of such a method of research, the possible benefits, it is, and drawbacks will be discussed as well as an analysis and discussion into these stakeholders with this particular debate and the means by which such a method of differs from many of the other approaches that have thus far been discussed within the course. The first and most obvious stakeholder with regards to this particular issue is the tax payer himself/herself. As the one who is most responsible for subsidizing the newsprint organization, this stakeholder is directly involved in any wealth redistribution that might take place in the form of a government subsidy. A secondary, and obvious, stakeholder is the newsprint organization itself. A third stakeholder can be determined as broader society as it would be the ones that would feel the positive secondary and tangential benefits and drawbacks of newsprint subsidization. Naturally, through such a group of stakeholders it must also be noted that the government itself can be considered a stakeholder as well.1 Through an examination of the utility and lack of utility that newsprint subsidization effects on each of these stakeholders, it it’s the hope of this author to paint a more broad and nuanced view of this very issue to the reader. Firstly, it must be understood that newsprint subsidization is ultimately a tool that the government can use to increase and retain a talent pool within a given economy. Ultimately, the reader does not need to go into a great level of research or detail to note the fact that newsprint organizations are rapidly losing market share to technology and the means through which news is succinctly and immediately represented via the Internet. However, even though technological change and the shift away from newsprint have a definitive advantage, it also comes at a definitive disadvantage for society. A litany of studies has noted the fact that individuals who consume the majority of their news from the Internet and/or TV outlets invariably spend much less of their time reading.2 Moreover, and integration with newsprint invariably increases the level of current affairs knowledge and effective communication skills that the individual who utilizes it represents. The core question with regards to this dynamic is whether or not subsidized nation of newsprint is in and of itself worth the expense. As the readership of newspapers in general has dropped precipitously over the past several years, the ultimate utility that can be gained by subsidizing newsprint must be weighed against the ultimate loss that would be incurred with regards to the subsidy/tax money that would be spent. Another important element of newspaper/newsprint subsidization is with regards to the historical preservation element. What is meant by this is the fact that many of the newspapers that currently exist throughout the developed world has been in existence for the better part of several centuries.3 Ultimately, some of the oldest newspapers in the world paid back to the very beginning of modern print journalism and/or the printing press. As a function of this, allowing newsprint to merely fold and shutter its doors would obviously have a negative impact with regards to the cultural and historical legacy that these could continue to promote. However, once again, the stakeholders in this issue must be weighed as compared to the ultimate utility that would be lost from losing such a historical element within a given society. Perhaps the most compelling reason to provide a level of subsidized nation with regards to newsprint/newspapers is with respect to the fact that it encourages reading and educates the populace. This fundamental benefit is one that cannot truly be measured and calculated.4 In the same way that governments around the world struggle with whether or not they should provide a further level of funding with respect to their educational systems, it is difficult to ascertain the positive benefit that print journalism can have with respect to an educated populace.5 In this way, it is the opinion of this author that the most powerful reason and rationale that can be given with regards to maintaining a subsidy for print journalism/print newspapers is with respect to the element of encouraging reading that it provides. Even a cursory information reveals the fact that the overall length and complexity of articles that are represented in the online sector are invariably less as compared to those that are represented within print journalism. Quite obviously, the first section of this analysis focuses specifically upon the strengths and possible benefits that newsprint/newspaper subsidization can provide to the various stakeholders in question. However, the second section of this analysis will focus upon the ultimate drawback that newspaper/newsprint subsidization portends. The first of these is concentric upon the fact that government funding ultimately encourages a biased level of reporting. In much the same way that a constant level of attention is paid to public and private funding for any given institution or business entity, the same must be said with regards to the fact that a level of government subsidy invariably makes the entity rather dependent upon the government and therefore reduces the overall intellectual bias that could be represented with regards to reporting on a given news item. More importantly, a fundamental element of a “free press” is the fact that it supposedly represents the ability to weigh both sides of a given issue and presents the most logical and sound conclusion to the readers. However, with a level of government subsidized nation, the ultimate bias that could be represented with regards to a specific news story, or a litany of different stories, is tacit and innate.6 A further drawback that must be discussed is with regards to the fact that a level of government subsidized nation invariably encourages inefficiency within a given market. A litany of economic studies has revealed that subsidized businesses and industry are less efficient than their private counterparts.7 Naturally, it is true that many of the previous benefits that could be derived could help to outweigh this negative externalities; however, intervention by the government, in the form of subsidized nation, naturally diminishes the overall competition that is represented within a given market.8 As such, subsidization of newsprint could encourage a level of economic instability throughout tangentially related markets. When one stops to consider the way in which advertisements have long been a manner through which newsprint has allowed itself to perpetuate, it does not take a great deal of imagination to envision a world in which government subsidy of newspapers no longer requires advertising to shoulder the lion’s share of the cost. This could obviously lead to a chain reaction through which tangential businesses could suffer as a result of the level of subsidization for newsprint that has thus far been discussed.9 Ultimately, it is the understanding and opinion of this author that even though government subsidized nation could be extraordinarily beneficial in promoting societal levels of education and reading, historical preservation, and creating an informed populace, the drawbacks of subsidized nation that had been discussed above ultimately outweigh these. Furthermore, seeking to ameliorate the issues that are represented within a changing market, impacted upon by technology and social shifts, could ultimately be reduced to fighting an endless battle against change. In keeping with Adam Smith’s theory of laissez-faire economics, it is the understanding of this particular analysis that the best approach with regards to maximizing societal utility is to allow the markets to operate as they would in a normal and unimpeded way.10 Such a line of reasoning is helpful with respect to the fact that subsidizing a nation’s of newsprint could ultimately lead to a situation through which the government would then be responsible for subsidizing a great litany of different industries/businesses merely due to the fact that they represent a historical elements that requires preservation and/or a possible tangential benefit society. Even though the argument for retaining print journalism because of its possible benefit to the education level and knowledge of domestic and international relations is profound, it must be understood that the ultimate stakeholder with regards to these issues is the society itself. Accordingly, even though the government can provide the mechanisms through which education and a further level of knowledge can be attained, it is the fundamental duty of those individuals within the society to utilize the tools at their disposal as a means of bettering themselves and understanding the world to a more full and complete degree. References Anderson, William L. 2010. "Losing the Privilege." Regulation 33, no. 2: 51-53. Business Source Complete, EBSCOhost(accessed October 21, 2013). Bezanson, Randall P. 2012. "Whither Freedom of the Press?." Iowa Law Review 97, no. 4: 1259-1274. Academic Search Complete, EBSCOhost (accessed October 21, 2013). Fitzgerald, Mark. 1994. "Deciding whether to subsidize." Editor & Publisher 127, no. 2: 13. Business Source Complete, EBSCOhost (accessed October 21, 2013). Ghiglione, Loren. 1990. 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