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Feb 26, 2005

Go Ellsworth!




Shades of Ellsworth Toohey! Does this apply to America, as we have been Rupert Murdoched as Well?

The Spectator, UK 2/26/05

Cover Story -- Time to fight back
By Douglas Hurd

It is 7 a.m. and across Britain sober citizens awake to switch on the BBC Radio Four news. They expect perhaps to hear about Iraqis killing Iraqis, about some hope in Palestine or Gordon Brown’s latest boasts on the economy. Instead, at the top of the bulletin they learn what the BBC judges the most important news of the day. With all solemnity it announces that the Duchess of York has voiced support for Prince Harry in the argument about a swastika at a fancy dress party. How low can the BBC sink in obeisance to the triviality of the popular press? No one should blame the Duchess, who needs all the headlines she can get. But the BBC is a public-sector body, at present arguing its portentous case for continuing the licence fee. That day it led with a story of supreme triviality simply because the press were running it hard.

There is nothing new about the triviality of the tabloids. What is growing fast is the link between that triviality and power. That power is exercised over the BBC, over what used to be called the quality press and, most dangerously, over the politicians whose laws shape our lives. We are becoming a nation of strong journalists and weak politicians.

In its triviality, the press supposes that we cannot absorb sustained argument. It prefers to deal in symbols. These are selected to stimulate one of the three qualities which the press particularly favours in its readers — brutality (including envy and blame), fear and sentimentality. These qualities seem to be particularly highly regarded in the Daily Mail.

Everyone can understand, and many can be brought to envy, the fact that the Prime Minister took an exotic New Year holiday. Every prime minister deserves a decent holiday and every prime minister I have known, except Margaret Thatcher, knows that they need one. No one giving the matter a moment’s real thought could suppose that in an age of instant communication anyone would be a whit the better off if Tony Blair had cut his holiday short and bustled self-importantly home after the tsunami disaster. We should always suspect the argument that such and such an action gives ‘the wrong message’. Actions should be judged on their substance, not on some supposed secondary message. What Indonesian fisherman would have found his grief or anxiety allayed by the news that Blair was back in Britain? The disaster itself was excellently covered, but within hours the laws of triviality resumed their sway. The story had to be kept going. Instead of putting the tsunami in the context of greater but less dramatic misery in Africa, the press cast about for someone to blame — the Prime Minister, foreign service officials, the UN, God. None of these was much good at answering back.

Anyone interested in prisons or our criminal justice system knows how the public are pushed towards brutality by part of the press — by the reporting of court cases, the exploitation of the understandable misery and anger of vulnerable victims. Prisons are caricatured as palaces of luxury. Efforts to prevent re-offending are neglected, as is the Prayer Book’s concept of ‘time for amendment of life’. The Daily Express leads with the horror story that paintings by prisoners are actually to hang in the new Home Office.

Fear comes next. Fear of crime is a social evil in itself, blighting the lives of many whose lives are relatively safe. The ‘war against terror’ is even better for the press, particularly when they can tempt politicians and police officers to pretend that the whole life of the nation is actually at stake, as it would be in a real war.

Sentimentality adds sugar to the poison. We can all remember the overflow of mourning for Diana, Princess of Wales. The Prime Minister uses a particular catch in his voice on such occasions.

The press seizes a genuine popular reaction and then inflates and prolongs it beyond reason. Or it links two events which have nothing to do with each other: for example, London’s Olympics bid and a trivial fracas between Ken Livingstone and an Evening Standard reporter. The headlines blaze and attract the attention of the Prime Minister. The incident is none of his business. But in he steps, presumably in his capacity as high priest of apology, and tells the Mayor to be sorry.

Consistency is not required. It is possible for the same paper to denounce over-regulation vociferously while clamouring for a clampdown on some particular activity which it for the moment dislikes.

Does all this really matter? Or is a trivial press just something we have to put up with? After all, we can go out and buy the Herald Tribune if we actually want to know what happened in the world yesterday. It is comforting to watch how people read their tabloids in the Tube. A glance at the headlines, then settle down to the news about celebrities or sport. Entertainment scores five, instruction nil. Prime ministers do not travel on the Tube; so they tremble excessively at the power of the press. A similar experience awaits candidates who contest a general election. It was always refreshing to leave the heated artificial world of politicians and the press, and begin work among real people in a real town or village. Real people are nicer and more intelligent than the newspapers which they buy for entertainment. But two warnings are relevant. The bad drives out the good. Since any story we read about a situation within our own experience is usually inaccurate, we tend to dismiss all stories equally. But good journalists are still indispensable in rooting out abuse and exposing bureaucracy, particularly now that the Commons has made itself so feeble.

The second warning is to the politicians. A real danger arises when they allow their judgment to be distorted by press campaigners. They may feel bound to bend before the wind when it blows strongest, their morale weakened by opinion polls taken in the heat of the moment. But reeds should not break; when the wind passes they should stand upright again. Politicians are there to use their judgment; if they abdicate that task too often, there is no point to them. We can remember dangerous dogs, the firearms legislation after Dunblane, and, more recently, questions of gambling and drinking hours. Politicians should indeed test opinions before making up their minds, and the press has a part in that. But this is different from succumbing to a whirlwind press campaign.

I suspect that every home secretary would agree with Charles Clarke’s final conclusion that there was no advantage in altering the present law which permits the reasonable use of force against burglars. The exact text of the law is important to the judge in summing up, and also in passing sentence after a guilty verdict. But it is the verdict that matters. The jury which decides that verdict is overwhelmingly concerned with the circumstances and personalities of each particular case, not with the text of the statute. That was indeed the view expressed at the beginning of the press campaign both by the Prime Minister and by the Leader of the Opposition, men with Home Office experience. Yet when the storms blew at full strength both wobbled away from their considered judgment. Hard press campaigns can make bad law. Remember what Tom Stoppard wrote: ‘I’m with you for a free press. It’s the newspapers I can’t stand.’

None of this is an argument for a new press law which would certainly be inept. Nor should we pull up the Press Complaints Commission by the roots and start again. The essential point is more simple. Politicians should be ready to get together to resist pressure which they agree is unreasonable. One minister, after telling me of a paper paying a large sum to buy criticism of his department, said it was useless to expose this kind of abuse since the opposition would always side with the press against the government. But the opposition too has an interest in resisting unreasonable pressure. Baldwin stood up against the press lords in 1931. Lord Beaverbrook and Lord Rothermere were determined to overthrow him as leader of the Conservative party. But in the famous by-election at St George’s Westminster he and the official candidate, Duff Cooper, changed the issue to the dictatorship of the press — and won handsomely. Our present politicians are in a stronger position than Baldwin because they have means of reaching the public direct which did not exist in his time, notably television and the Internet. One day, on some well-chosen issue, the politicians should be ready collectively to turn the tables on the press and stand up for their own genuine opinions. They might be surprised by the welcome which such a stand received.

Douglas Hurd is working on a biography of Sir Robert Peel.


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Gus diZerega - 2/28/2005

Robert-
My point is not that corporations are illegitimate. I think we need them. Libertarians who do not want them at all would probably face a wrenching change in what they think a free market economy would be like if they got their wisjh. Corporations make it much easier for enormous amounts of capital to be brought together for big projects.

My point is that corporations are particularly interesting theoretically because, when they operate as planned, they are perfect expressions of pure market values. In Hayekian terms, they are organizations created to pursue market values as the top in a hierarchy of ends. Individuals also pursue a hierarchy of values and market values are usually in that hierarchy . They certainly are in mine. But rarely are they the top of it. Market values are means for individuals, ends for corporations.

This point is clear when we reflect that while we are all consumers, few if any of us are just consumers.

For individuals, prices are signals. For corporations, prices are commands. (That is why so many free market economists dislike talk of corporate social responsibility whereas they have no grounds to criticize individual businessmen or women who allow such values to influence their actions.) The ethical differences between how corporations act and how individuals act spotlites the differences between how markets express values and how individuals express them. There is plenty of overlap - anyone who reads me as a market basher misreads me. But overlap is not identity. To the extent that individual business people are displaced by corporations, a change in the ethical depth of decision making has taken place.

Classical liberal theory arose, and its basic framework developed, before the rise of large corporations or large scale democracies. The first are enormous instrumental organizations whose institutional interests are hostile to spontaneous orders that threaten their existence. The latter, I have argued in many places, are spontaneous orders that have to a significant degree transformed what classical liberals used to call the state into something that is quite different. It has state elements, but they are usually subsumed into spontaneous order elements, except during war time. (Tocqueville saw this when he made a distinction between centralized government and centralized administration. The pre-democratic European state is the administration in Tocqueville's sense.)

I think classical liberal insights need to be able to address this changed environment - an environment that arose largely because of the success of liberal political and economic ideas. The implication in my view is not the welfare state or progressive liberalism - butnneither is it libertarianism as economism or a denial that public values exist.

The issue of the media that Bill brought up gave me an opportunity to connect this point with an important practical issue.

As to your second paragraph, there are some analyses - including one I had in the summer 2004 Review of Politics that used Austrian theory to analyze the issue. Newspapers have historically separated the news section from other sections of the paper. The news section serves public/citizen values, the rest serves consumers. (That is why the automotive section is not the place to look for serious criticism of a new car model. Its purpose is to generate revenue from auto dealers, etc.)

When the LA Times was bought by a large chain among other things marketing executives were added to the news section, and within a year or so the Times was in a big conflict of interest scandel as news was used to promote income for the paper. Further, corporations are less likely to take financial risks defending the first amendment and the like - it is easier to not report the story and keep the money. So the issue has to some exctent been studied - but except for my ROP piece, not within an Austrian/Hayekian framework.

Not acquainted with Weaver's book. I am not idealizing the news - it has been attacked, and often rightly, for as long as there have been papers. The point is that human owners and managers have the capacity to make value trade offs between serving consumers and citizens and corporations are not supposed to. There are a number of studies that correlate the passage of time with the dumbing down of TV news - shorter sentences, less time per story, less talking heads, fewer syllables in the words used, etc. Not quite to the 1984 level of "Oceana Double Plus Bad!" But leaning in that direction.

I hope this clarifies my point.


Robert L. Campbell - 2/28/2005

Gus,

I'm having a little trouble following your argument here.

For one thing, if corporations are an illegitimate organizational form per se, shouldn't they be forbidden outright? Why try to formulate laws allowing some kinds of enterprises to be corporately owned, while prohibiting corporate ownership of other kinds?

Second, are there data available on such issues as the degree to which local newspapers suck up to established local institutions? Are corporately owned newspapers more likely to do so than newspapers that aren't corporately owned? The Greenville News, the Tuscaloosa News, and the Hattiesburg American all belong to large newspaper chains, but the Greenville and the Tuscaloosa papers faithfully represent the interests of the upper administrators and trustees at the universities in the area, and the Hattiesburg paper (at least at the present time) does not.

Are you familiar with Paul Weaver's book, News and the Culture of Lying? According to Weaver, the basic problem is "Pulitzerian journalism," the kind that pretends to neutrality but actually promotes certain agendas while formulating its coverage in a few standard modes, such as crisis and response. But Pulitzerian journalism is more than a century old. It's been around much longer than Rupert Murdoch.

Robert Campbell


Gus diZerega - 2/27/2005

That is a very complex and interesting issue. I cannot begin to answer what would happen in a hypothetical pure libertarian world under modern conditions since it does not and has not existed. (Medieval Iceland doesn't work.)

Such a world would have to answer questions about how responsible owners should be for the misdeeds of employees in large and impersonal enterprises where owners do not even know who their employees are - and if the responsibility was total, what doing without, say, a mining industry might be like.

A concrete example - W.R. Grace deliberately allowed the poisoning and death by suffocation of many people in Libby, MT, through mining asbestos without informing workers and townspeople of lethal risks management was well aware of. If shareholders of the company's stock could be help completely responsible for liability, the people of Libby might find a modicum of justice. But who would then finance mines?

It's complicated.

But I think the issue of consumers and citizens is one we can address fairly clearly, once we grant that markets do not simply serve as facilitators for exchange, but also influence the kinds of exchanges most likely to be successful in market terms (making a money profit for the seller).

That supermarket tabloids do well suggests that there is indeed a strong consumer demand for such media, and that if it appeared in the news it might fly. It certainly has appeared in the news and it certainly does fly. It is a market opportunity that the theory of entrepreneurship suggests will be exploited sooner or later. All it need be is to be noticed so long as a person or organization is interested only in money profit. Corporations are such organizations.

If corporations are primarily creatures of political privilege, then no genuine libertarian or classical liberal should support such organizations. Of course, most do. Witness all the ink spilled against trial lawyers compared to ink spilled criticizing corporate political power. I think it fair to say the proportions are not even close to equal.

More to the point - how can classical liberals address the issue of serving non-consumer values without reliance on government coercion (which also does a bad job addressing such values)? My own hunch is that the area called "civil society" is the key to a deepening of classical liberal theory - an area potentially able to address many public values better than government.

And it may be that laws banning public corporate ownership of certain institutions that of their nature need to serve more than consumers are the best choice. Thus, corporation can own movie companies that overwhelmingly serve consumers, but not newspapers or radio or TV stations because they serve both citizens and consumers. It may well be that as a consequence, consumers will be less well served - but at the same time citizens will be better served.

This perspective says, enthusiastically, that the market is far and away the best way to serve consumers - and while all of us are consumers, we are not just consumers. Adopting a set of rules that privileges serving consumers over all other ways of serving or being a person may not be quite as free or noncoercive as it sounds in abstract theory.

The abstract theory works only if markets are truly neutral. Corporations demonstrate, I would suggest, that they are not. If markets are not neutral means for transmitting preferences, then the criticisms of other means as being imperfect have lost some of their weight. We are in the realm of comparative institutions for serving different kinds of values.


Roderick T. Long - 2/27/2005

"Behold the superfluous! They are always sick; they vomit their bile and call it a newspaper."

-- Nietzsche


Roderick T. Long - 2/27/2005

I agree that, as it were, "markets are not enough." I don't think a culture of liberty will just automatically be sustained by thriving markets -- though I also don't buy the thesis propounded by many conservatives that markets automatically undermine themselves by propagating values antithetical to liberty. What I would say is that there is always going to be a need for intellectual/cultural entrepreneurship/activism.

That said, I do think it's worth pointing out that corporate dominance of the media is not necessarily a free-market phenomenon anyway, given the various ways in which government regulation encourages cartelization, increases economies of scale, etc.


Gus diZerega - 2/27/2005

The article suggests a problem and a challenge for traditional classical liberalism.

The tabloids serve consumers, the "serious press" serves citizens. When serving consumers pushes out serving citizens, we get less and less information that we need to make even half-way sensible political decisions. The US is farther down this road than the BBC because, I think, the media is almost entirely corporatized. Almost no American national news is useful to us as citizens. It is entertainment, heart wrenching, but usually focused on personal tragedies. For example, the recent capture of a probably serial killer in Wichita, Kansas, about which I am sure we will hear a lot more.

Corporations are only oriented towards serving consumers whereas individually and family owned media are able to make more complex value trade offs. They need to stay solvent - but within that limit, are free to pursue values other than maximizing money profit. Many of the best moments in journalism were risky for the publishers - and so would not be pursued by a corporate CEO who was truly serious about serving shareholders alone.

This post is another attempt on my part to argue that libertarians and classical liberals need to develop a more subtle understanding of the relation of the market to freedom than the old formula that if it is a market phenomena it is OK. Market rules, like any other rules, are NOT neutral, they bias towards some values at the expense of others, and what gets left out is sometimes very important.

Can the classical liberal framework deal with this kind of issue? To do so it has to attend to the issue of contexts, which Arthur Silber brought up a while back, but which was not much pursued. In fact, the silence was almost deafening.


Max Swing - 2/26/2005

That's a very good summary of what I feel about the press, not only in the US (Hey, cheers to FOX News), but more importantly (at least to me) Germany. Since we Germans copied the popular press idea from the Britains and (as it is the Germans way of doing things) made it far more successful: The BILD newspaper.

I sometimes think that it is even cheaper than toilet paper, given that it costs only 80 cents. If you read the HEADLINE article and then browse the contents, you could start crying about the triviality and the very brief and brainwashed reports. I don't think there are many newspapers out there, that are as stupid as the BILD Zeitung, not even in the US.