2. Special Status of the Press 1st Amendment Protections Special laws (shield laws) How do we justify this status?

3. Role of Press in a Democracy Democracy can’t function without informed, critical citizens The press is the main informer of the public Jefferson—A free nation requires a free press

4. The First Amendment Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

5. In the modern world of corporate press, does the press fulfill the role that justifies its special status? Is the modern press (or mass media) more a lap dog for corporate interests than a watchdog?

6. Herman and Chomsky’s Propaganda Model Mass media is a tool for communicating messages to the public Function includes: amuse, entertain, inform, socialize (assimilate) people into institutions In a diverse society, this requires propaganda

7. Propaganda is not always obvious Media are in private hands There appears to be competition Occasionally media attack government or corporations

8. Key Elements of Propaganda Size, concentrated ownership, wealth & power of owners of mass media Advertising as the primary source of income A culture of ‘experts’ ‘Flak’ as a tool of discipline ‘Civic religion’ of anti-communism and free markets

9. Media Concentration The dangers of concentration (CJR) The Big Five, an American keiretsu Consolidation of service and content providers –Add internet access to the new mix

10. Advertising as the Primary Source of Income The problem with advertising revenue—MS and ‘complementary copy’ Subscription funded media can’t compete despite superior products and higher customer satisfaction Delivering targeted audiences Killing stories (PEW study)

11. A Culture of Experts Talking heads and the ‘punditocracy’ Small cadre of mediagenic quasi- experts

12. “Flak” as a Tool of Discipline Press attacks government, right attacks press Conservative ‘media watchdog’ groups

13. The Religion of the Market The rhetoric of free markets is one thing, the reality of markets is quite another

14. Markets, Market Assumptions, And The Invisible Hand

15. The Market Society (17th Century) Emphasis of individualism (autonomy) The sovereign consumer The law of supply and demand

16. Supply and Demand Elasticity of supply and demand Price elasticity Marginal costs and marginal benefits (utility at the margins)

17. The Market Society (17th Century) Emphasis of individualism (autonomy) The sovereign consumer The law of supply and demand Markets, essentially unregulated businesses, benefit society

18. Business is to be considered as an autonomous and independent activity because it will then serve society Robert Solomon

19. Markets and Freedom Free markets are possible only within a broader context of FREEDOM Freedom allows capitalism to work

20. Economic and Political Freedoms Which take priority?

21. Marx and Capitalists Agree on the Importance of Freedom Capitalists emphasize the freedom of individuals to pursue their own ends through the operation of markets Marx emphasizes the freedom of an individual from coercive market forces

22. Market Assumptions Perfect Information Perfect Competition

23. Competitive Markets are Characterized By: Low costs of entry Low costs of exit Absence of monopolies

24. Market Assumptions Perfect Information Perfect Competition Mobility Factors Firms Maximize Profits, Consumers Maximize Utility Consumer Preferences are Exogenous Few, If Any, Externalities

25. Markets, Market Assumptions, And The Invisible Hand

26. The Invisible Hand Individuals, seeking their own self interest, providing good products at a fair price, are guided by an invisible hand to promote the public interest

27. BUT, Historically markets produce tremendous inequality ‘Free trade’ advocates rarely want free trade Markets deal poorly with values that are hard to monetize—Richard Cory