BUYING

OFF

THE MEDIA

Americans are proud of their free press, and the rights they enjoy to freedom of expression, but we often attribute these rights to the Bill of Rights, instead of the legal culture that has existed in Anglo-American civilization for a thousand years. The media in America, however, is not free; it is big business, and it is a business that is dominated by multinational media cartels, information cartels. Even CNN, which was lauded for its independence and its world-wide scope, has suffered from the merging of Turner Broadcasting, the parent company of CNN, with Time-Warner.

The following articles address the issue of the media as business, and the underlying issue of whose interests are being represented by the media industry. The first is an article from Associated Press that is reprinted from the Wall Street Journal, that details a multi-million dollar deal cut between the State of New York and Rupert Murdoch's media empire, News Corp., that essentially is an enormous welfare subsidy. The second article is derived from an editorial in the Los Angeles Times that addresses the $1 billion subsidy the Federal Government is giving away to the broadcasting industry to promote the Federal Government's last ditch propaganda campaign to keep Prohibition on life-support. It also looks at the fact that aside from this outright purchase of the media's loyalty for a flawed public policy, the broadcast industry is also the beneficiary of a $70 billion give-away of public property: the airwave spectrum.

WELFARE FOR A BILLIONAIRE

ALBANY, NY-- (AP) Concerned that News Corp.'s New York Post would move its printing presses from New York City to New Jersey, the state's economic development agency has offered the newspaper nearly $13 million. The grant, to be voted on at a meeting today (20 July, 1998), would be one of the largest ever from Empire State Development Corp., the Times Union of Albany reported Friday.

Empire State Development would commit the money to keep 807 full-time jobs in the state with hopes that the newspaper will create 100 more positions by 2002, officials said. The Post has said it needs color-printing capabilities to compete in New York City. The state would purchase the Walnut Ave. Depot in South Bronx from the Metropolitan Transportation Authority for $11.5 million and then sell it to Harlem River Yard Ventures for $3.5 million. Harlem River Yard Ventures is a subsidiary of the Galesi Group, which plans to build the plant for the Post and lease it to the paper for 45 years.

The total commitment to the Post would amount to $12.9 million for site acquisition and preparation. The deal was approved May 20 in a public meeting, said Caroline Quartararo, a spokeswoman for Empire State Development. Now it goes before the state Public Authorities Control Board.

THE PUBLIC INTEREST IN TELEVISION

Last month, America's drug czar, Gen. Barry R. McCaffrey, stood alongside President Clinton and House Speaker Newt Gingrich to announce a five-year, $1-billion TV ad campaign urging teenagers to "say no to drugs" like marijuana, cocaine and heroine. The commercials are far from perfect: They fail to target alcohol abuse and say nothing about drunk driving, for example. But the biggest problem with McCaffrey's latest campaign is the $1 billion being paid to TV networks out of taxpayer money. This is a gargantuan sum for network air time that was once provided without charge as a public-interest payback for the right to use the airwaves, which belong to the public. (Which, of course, is beside the fact that $1 billion could go a long way if spent on a program with some real substance, like drug detox centers that actually enable drug addicts to get medical attention. WFI Editor)

Broadcasters cited their faithful obedience to that obligation in 1996 when Congress was preparing to sell a part of the airwaves in an auction expected to yield up to $70 billion for taxpayers. Congress was persuaded to give them these airwaves, gratis, in exchange for an agreement to meet additional public-interest obligations, to be determined later by a Federal Communications Commission panel. They also promised to return the spectrum space by 2006. Since then, a coalition of TV networks represented by the National Assn. of Broadcasters has retreated from both of those commitments. Last year, it persuaded Congress to pass a bill adding so many conditions for returning the airwaves that it's now reasonable to question whether they will ever be given back.

The broadcasters have been fighting the FCC public-interest panel ever since Clinton established it last year. Last week, one broadcaster boasted to the trade journal Communications Daily that the panel will never require any new obligations, that it will "fizzle out and be a bunch of nothing" instead. Broadcasters have not only refused to assume new public-interest obligations, they have quit honoring some old ones. As former FCC Chairman Reed Hundt puts it, prime-time public-service announcements "have dried and up and disappeared like rain in the desert."

SOURCE: Welfare for a Billionaire is reprinted from the article entitled, "New York Post Offered $13 Million Grant to Remain in State," from the Wall Street Journal, 20 July, 1998, West Coast Edition. The Public Interest in Television is excerpted from the Los Angeles Times, Orange County Edition, editorial "TV Snubs the Public Interest," 24 August, 1998. These articles are excerpted in the public service of the national interest of the American people.

(WFI EDITOR: When public property is given away to business, it is called "free enterprise" and "capitalism," but when it is given to human beings for survival, it is called socialism and communism. Americans have no idea how much of their public treasure is given away annually, enriching private interests, while millions of Americans are left hungry and desperate, and vulnerable to criminal influences. When Alexander Hamilton invented the Bank of the United States to pay off the rich plantation aristocrats who owned the bonds that financed the Revolution, no one accused him of socialism; but individuals are expected to survive without any help from their Government. Instead, they are expected to PAY the government part of the little they are able to earn. The partisans of the republic cannot hide behind the ideological smoke-screen forever.)



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