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We’re from government and we’re here to help save journalism.”

That seems to be the hot new meme in media policy circles these days. Last week, it was the Federal Communications Commission (FCC) kicking off their “Future of Media” effort with a workshop on “Serving the Public Interest in the Digital Era.” This week, it’s the Federal Trade Commission’s (FTC) turn as they host the second in their series of workshops on How Will Journalism Survive the Internet Age? Meanwhile, the Senate has already held hearings about “the future of journalism,” and Senator Benjamin L. Cardin (D-MD) recently introduced the “Newspaper Revitalization Act,” which would allow newspapers to become nonprofit organizations in an effort to help them stay afloat.

I have no doubt that many of the public policymakers behind these efforts have the best of intentions and really are concerned about what many believe to be a crisis in the field of journalism. But here are my three primary concerns with Washington’s sudden interest in “saving journalism”: Continue reading →

Over at “Convergences,” I write on the origins of the idea of a “public option” for health insurance. In part, I note:

At a superficial level, the “public option” for health care is both appealing and puzzling. From a competition policy standpoint, the entry into the market of a subsidized competitor offering a wide array of benefits certainly might put downward pressure on prices as well as easing humanitarian concerns about access. Equally obvious, though, are objections. What mechanism of accountability would exist to ensure that this subsidized entity is well run? It cannot be allowed to go bankrupt; nor is it likely that unhappy customers would have much leeway in suing it. How would it avoid driving private insurers out of the market for low-end service entirely? How much of a subsidy would it get, and how is this to be funded? Since the party and administration that sponsored this proposal are associated with the intelligentsia, however, people hoping to improve the health care system probably felt entitled to trust that these questions had good answers. Somewhere, someone deep in the bowels of the brain trust had considered these issues. Curious about this, I found myself reading one of the more serious works to address the public option, a paper by Randall D. Cebul, James B. Rebitzer, Lowell J. Taylor and Mark E. Votruba entitled, “Unhealthy Insurance Markets: Search Frictions and the Cost and Quality of Health Insurance,” identified as NBER Working Paper No. 14455, from October 2008.

Read my whole piece, here.

Free Press, the radical pro-regulatory media activist group, recently filed comments with the Federal Trade Commission (FTC) for the agency’s upcoming workshop on “How Will Journalism Survive the Internet Age?”  The Free Press comments provide an enlightening glimpse into the mind of how many on the Left now think about media policy in America.  Their approach can be summarized as follows:

  1. Nothing the private sector can do will save journalism (unless it is entirely non-profit / non-commercial in nature);
  2. Even if there was something that private players could do to save journalism, Free Press would likely have federal authorities forbid it anyway (especially if it involved new business ownership patterns or combinations); and,
  3. The only thing that can really save journalism is a “public option” for the press in the form of massive state subsidization of media in this country.

To elaborate on the last point, here’s how Free Press summarizes what they are looking for:

For U.S. public media to become a truly world-class system will require a substantial increase in funding. This could be accomplished by an increase in direct congressional appropriations to the Corporation for Public Broadcasting. With increased funding — to as little as $5 per person, increasing annual appropriations to some $1.5 billion — the American public media system could dramatically increase its capacity, reach, diversity and relevance.

But they stress that a simple expansion of the PBS/NPR/CPB non-commercial model will not be enough since that system is “vulnerable to repeated threats of funding cuts” and too “reliant on corporate backing, via the underwriting process.” They want to go well beyond non-commercial media, therefore, and have the state start building a massive public media infrastructure.  Here’s where their pitch for a public option for the press comes in: Continue reading →

FCC Chairman Julius Genachowski suggested at an FCC field hearing this week that the federal government might create its own “version of iTunes.” Multichannel News reports: Itunes Store

The chairman asked panelists to think about the value of a clearinghouse where best practices could be shared. He suggested that might be a way to spur the spin-off of public-sector apps from private sector initiatives and to prevent reinventing the wheel, rather than tapping into what is already being done. There is not a lot of shared info out there, he said.

If all we’re talking about is a clearinghouse that provides easy access to apps for government-developed apps, Google Code or SourceForge may be a better model than iTunes—though perhaps without the instant name recognition by ordinary consumers. Like SourceForge, Google Code allows hosting and management of open source projects, including Google’s own products. iTunes, by contrast, essentially offers consumers finished apps. Also, iTunes is a stand-alone piece of software, of which the Apps Store is  just one part, while I can’t imagine why Genachowski’s “store” need be anything more than a website.

Whatever the analogy, such a “store” could well be a valuable tool for sharing the benefits of software development by government employees, both with the private sector and among federal agencies as well as state, local and even foreign governments. But what, exactly, Genachowski had in mind for the store remains awfully vague: Multichannel News mentions, as examples, “applications that do everything from monitoring heart rates and blood sugar to checking for greenhouse gas levels.” If the idea ever goes anywhere, it should be based on two principles:

  1. All apps should be open source and available to all users to use as they see fit.
  2. The store should be limited to apps developed by government employees to meet the needs of government agencies.

Continue reading →