Now we have a newspaper wanting money - the first of many?

[Kay]

As predicted, if the bailout of the auto industries went ahead, others would follow. Here we have one small newspaper in Connecticut with a lawyer ready to plead what could well turn out to be a test case and the thin edge of the wedge.

Article (http://www.reuters.com/article/reutersEdge/idUSTRE4BU53T20090102)

My problem with this is not only that it has the potential to create an avalanche of similar cases. How can the media remain independent if it's government funds that keep it alive? As one journalism professor puts it, "You can't expect a watchdog to bite the hand that feeds it."

[Nazreen]

"You can't expect a watchdog to bite the hand that feeds it"

I'd have to agree too with Professor Paul Janensch's comment in the article. If a newspaper company were to receive bailout money or government loans, how can it maintain it's objectivity? How can it become impartial when reporting anything concerning the government?

Aside from this, where does the U.S. government draw the line as to who gets bailout or government loans?

[flashgordonweb]

My standpoint, from a business perspective, is that we should not be bailing out companies. If a company sells a product that no one wants, are we to bailout the company? I read newspapers every day, but I'm not about to give my tax money to bail them out. They should be more adaptive with their strategies. The car companies should have kept their electric cars on the market (GM had one that worked perfectly but was pulled; so did Saturn). Is it not the nature of business to either sell a product that people actually want or to move on until you find a product that people want.

[Kay]

I'd have to agree too with Professor Paul Janensch's comment in the article. If a newspaper company were to receive bailout money or government loans, how can it maintain it's objectivity? How can it become impartial when reporting anything concerning the government?

Aside from this, where does the U.S. government draw the line as to who gets bailout or government loans?

Exactly, Nazreen. And the line? I wish I knew. I wish they knew.


My standpoint, from a business perspective, is that we should not be bailing out companies. If a company sells a product that no one wants, are we to bailout the company? I read newspapers every day, but I'm not about to give my tax money to bail them out. They should be more adaptive with their strategies. The car companies should have kept their electric cars on the market (GM had one that worked perfectly but was pulled; so did Saturn). Is it not the nature of business to either sell a product that people actually want or to move on until you find a product that people want.

I agree entirely, flashgordonweb. And it's not as if they haven't had the funds to remain a going concern. They just handed them all out in big fat exec bonuses before pleading poverty. That's what is riling the majority of the public. I really feel the current government has lost touch with the reality of mood of the citizens on this. Your everyday person ain't happy and will get even less so if they do it again. I can only hope the new president does something other than offer bailouts when he takes over. It's unfair that everyone else should shoulder the burden of what amounts to the cumulative effect of corporate greed imho.

[Nazreen]

Concerning bailout, I'd have to agree with you too flashgordonweb.

As for government loans, I think that the same should also be applicable as with the auto makers who received these loans. This newspaper company should be able to prove to the government that it has a definite plan to restructure and in using this loan wisely. If they don't then they won't be able to repay and will just go bust with or without this government loan.

[Fergal]

I can see that there would be issues with governments rushing in to bail out small businesses. But if they can help big business to the tune of billions of dollars, why should they not help smaller businesses as well? The cost per job saved might actually be less than the cost per job saved in the big companies.

[Kay]

I can see that there would be issues with governments rushing in to bail out small businesses. But if they can help big business to the tune of billions of dollars, why should they not help smaller businesses as well? The cost per job saved might actually be less than the cost per job saved in the big companies.

Right. And it's not the fact that this is a small business that concerns me so much as it's representative of a much larger industry. All it takes is one case to set a precedent and the avalanche will begin.

There are hundreds if not thousands of newspapers in the States. For example, refdesk (http://www.refdesk.com/paper.html#natnews) has 66 national newspapers websites listed but there's many more at state levels - California for example has 181 and Texas has 130. And that's only the ones that have websites.

But you're right, if there's handouts to be had then the small business shouldn't be discriminated against. What I'm saying is that they shouldn't have begun in the first place because there will be no end to it. They only have so much allocated and are already taking from one side to give to another. Are they going to fund another bailout and another and another? Where's the money all coming from for them? I don't see how this is helping. It's more like firefighting.

[Fergal]

I agree with you Kay. But it is difficult to see how the government could completely turn it's back on the banking and automotive industries, that have such a huge impact on the overall state and health of the economy. The impact on the economy if these industries were to collapse, doesn't bear thinking about.

Perhaps the government should only bail them out in return for a significant shareholding in the respective companies. At least then the government would get a return when and if the companies return to profitability.

[scifi]

Newspapers as a media have very wide & deep presence in the public & also very significant appealing power..Seeking bailout from govt. means their very trust of the quality & unbiased news is in questions?????!!!!!

[Nazreen]

I've just been to Bristol Press' website (http://www.bristolpress.com) and they've made some very interesting points for asking for a bailout or loan. Number one reason would be that these papers are the only local papers in their area.


“Having a locally based newspaper is important for public accountability,” the letter to McDonald says, adding that as elected officials, they want the public to have access to independent news about their governments and communities.

But I still think that the probability of them getting a bailout is pretty low. The reason for this is that these are small papers and that their cities are also quite small.

[Fergal]

Local newspapers provide a valuable service to local communities. They are very beneficial to people who do not have access to other means of local news. For example they provide a way for older people to stay informed as to what is going on in their own community, and helps prevent them from feeling isolated from the community. It would be a shame to see these benefits being lost.

[scifi]

Local newspapers provide a valuable service to local communities. They are very beneficial to people who do not have access to other means of local news. For example they provide a way for older people to stay informed as to what is going on in their own community, and helps prevent them from feeling isolated from the community. It would be a shame to see these benefits being lost.

It would be a great loss of a valuable service to local communities for certain if bailout would not be granted to these local newspapers but as it goes that everything has a importance & a worthwhile value according to which it is being given priority over other things, Right now it would not be a good move to give bailouts to newspaper as it will send wrong message in the public that 'go bankrupt & govt. is there to help you...!!!!!'

[Nazreen]

It would be a great loss of a valuable service to local communities for certain if bailout would not be granted to these local newspapers but as it goes that everything has a importance & a worthwhile value according to which it is being given priority over other things, Right now it would not be a good move to give bailouts to newspaper as it will send wrong message in the public that 'go bankrupt & govt. is there to help you...!!!!!'

But then again, wouldn't people be crying foul and that the government is only favoring the multi-billion dollar businesses and neglecting the small ones?

During his presidential campaign, Obama actually suggested the Small Business Emergency Rescue Plan (http://usliberals.about.com/od/theeconomyjobs/a/ObamaSmallBiz.htm). If he doesn't make good of his word, then he might just become the most hated president in history.

[scifi]

But then again, wouldn't people be crying foul and that the government is only favoring the multi-billion dollar businesses and neglecting the small ones?

During his presidential campaign, Obama actually suggested the Small Business Emergency Rescue Plan (http://usliberals.about.com/od/theeconomyjobs/a/ObamaSmallBiz.htm). If he doesn't make good of his word, then he might just become the most hated president in history.

It is good & even right on moral grounds also to favor Small Businesses, But at this time we should use our brain instead of heart & decide whether those should be saved first which gives employment to masses & contributes most to the GDP or those which will have local impact only..
National Impact is more important than Local at these times....
If money is given to small businesses there will be a line of such many of them & then people will also complain that govt. is biased or is not fair to them....
So Big ones should be saved first which are more important to nation Although I am not agains't the issue that something should be done for the small businesses too so as to save them from vulnerability!!!

[Fergal]

Maybe the government should look at the dollar cost per job saved. For example how many jobs could the government save per million dollars spent bailing out small businesses in comparison to the number of jobs that could be saved per million dollars spent bailing out major national corporations.

[scifi]

Maybe the government should look at the dollar cost per job saved. For example how many jobs could the government save per million dollars spent bailing out small businesses in comparison to the number of jobs that could be saved per million dollars spent bailing out major national corporations.

A good suggestion Fergal!!
Govt. should definitely have framed some sort of mechanism or policies so as to decide the eligibility of loans to needy ones and striving 0nes too which are most beneficial to the Nation... People sitting at the top of administration level are people of great calibre( Atleast I believe so:), although can not state same for politicians too..:confused:) & they take decisions in the best of their Nation..

But your suggestion has given me idea of how this process might have put into process:D.. A good suggestion indeed!!!!

[Kay]

Guys and gals, sometimes things seem so ludicrous you really need to laugh. I was wrong, it's not the farmers looking for a bailout next as I was guessing - turns out it's the sex industry. I kid you not. Larry Flynt wants $5 billion.

Only in America. LOL. CBS News article (http://www.cbsnews.com/blogs/2009/01/08/politics/politicalhotsheet/entry4707339.shtml)

[scifi]

As I have said earlier, giving bailout to everybody without proper analysis will result in a long queue outside Govt. office..& this news article by Kay has confirmed the remaining doubts regarding that.......

[Fergal]

It's time for congress to rejuvenate the sexual appetite of America. The only way they can do this is by supporting the adult industry

You couldn't make that kind of stuff up. It's got to be a publicity stunt by the two adult industry publishers. Surely they can't really expect the government to give them $5Billion in these difficult economic times.

[Kay]

You would think so wouldn't you Fergal but honestly, they're perfectly serious. I can just see all the elected officials, especially on our Bible belt areas, rushing to add their names to the supporters list, can't you? :rolleyes: This will disappear fast.