How Capitalism Murdered Journalism with Margot Susca
May 29, 2024
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Adam Conover discusses with Margot Susca, a professor at American University, how private equity firms have dismantled journalism, leading to a decline in investigative reporting, loss of accountability, and conflicts of interest. They explore the detrimental impact of capitalism on journalism, emphasizing the urgent need for public awareness and regulatory guardrails to address the crisis.
Private equity firms dismantle journalism for profit, leading to reduced accountability reporting.
Lack of journalistic resources results in decreased coverage of critical issues in local news.
Regulatory safeguards are crucial to curb private equity's destructive control over newspaper chains.
Deep dives
The Decline of Local News and the Role of Private Equity
Private equity firms have deliberately targeted and decimated local newspapers by buying them as financial assets to extract as much money as possible, leading to a significant decrease in investigative reporting and accountability journalism. Not just a natural result of increased competition, the decline of local news is a calculated effort by wealthy entities to dismantle the newspaper industry, with private equity ownership rising significantly over the years.
Impact of Loss of Journalists on Communities
The massive layoffs of journalists have left communities with significantly fewer reporters to cover important local news stories, resulting in a lack of accountability and investigative reporting. The reduction in journalistic resources has led to a decrease in the coverage of critical issues such as corruption, public safety concerns, and government accountability, ultimately depriving communities of essential information.
Call for Regulation of Private Equity in the Newspaper Industry
There is a pressing need for regulatory safeguards to curb the unchecked growth and destructive practices of private equity and hedge funds in the newspaper industry. Advocating for the enforcement of existing laws like the Clayton Act to restrict their expanding control over major newspaper chains, there is a call to address the invisibility of these powerful financial entities and empower greater public awareness and scrutiny.
Challenges in Business Journalism
The podcast discusses the challenges faced in business journalism, emphasizing the need for critical reporting on powerful institutions. It highlights the failure of business journalism in holding powerful entities accountable and criticizes the portrayal of wealthy individuals as icons in capitalism. The episode underscores the importance of investigative journalism in uncovering the negative impacts of capitalism on working-class individuals.
Supporting Sustainable Journalism
The episode explores different models for sustaining journalism, including government-funded systems and alternative financing approaches. It questions the effectiveness of billionaire ownership models and the reliance on philanthropy, noting layoffs in major media outlets despite billionaire patronage. The discussion reflects on the need for innovative solutions to support journalism's vital role in society and proposes potential strategies to ensure sustainable and independent journalism.
We’ve been discussing the slow death of journalism for a long time, but what if it didn’t just “die”? This week, Adam speaks with Margot Susca, a professor at American University and author of Hedged: How Private Investment Funds Helped Destroy American Newspapers and Undermine Democracy, about how private equity firms have dismantled journalism and betrayed America. Find Margot's book at at factuallypod.com/books
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