Funding Net Neutrality … And Worse

There are so many things wrong with the FCC’s codified “net neutrality” rules, the kindest thing one can say about those responsible is that they were all born yesterday.  But criticism of this monstrosity abounds already, and given the potential for it to be wholly or partly undone by the courts or Congress, no further discussion of its many flaws is either timely or necessary.

Just before Christmas, however, John Fund wrote a piece in the Wall Street Journal that ought to be required reading for every media and communications mogul in America.  Titled “The Net Neutrality Coup,” Fund recounts the role played by a handful of large grant-giving foundations, and the beneficiaries of their largesse (“paid clappers,” in Ted Turner’s immortal phrase) in the promotion of this cynical creation of the “media reform” movement.

Perhaps the greatest value in Fund’s piece is his finding that most of those foundations that provided the lion’s share of funding for net neutrality were also among the biggest sources of funding for the earlier (and even worse) mischief, “campaign finance reform.”

Fund identifies by name a total of six grant-giving foundations and four operating organizations.  They are, among the former: the Pew Charitable Trusts, the Schumann Center for Media and Democracy, the Joyce Foundation, George Soros’s Open Society Institute, the Ford Foundation, and the John and Catherine MacArthur Foundation.

The four operating groups are Free Press, Public Knowledge, Harvard’s Berkman Center for Internet and Society, and the New America Foundation.  What all of these groups – funders and recipients alike – share in common is that, to varying degrees, they are all liberal-leaning, or “progressive,” as they yearn to be called nowadays.

Missing from this list is another billion-dollar grant-giving group – the Knight Foundation – which, through the Knight Commission, has itself peddled  net neutrality, along with such pap as the need for greater funding of public broadcasting, and tax credits for investigative journalism.  Though we won’t know for sure until its report is issued, the FCC appears to have adopted the Knight Commission’s recommendations as a kind of blueprint in its approach to the commission’s so-called Future of Media initiative.

The reason all of this should be of the greatest importance to everyone, but particularly to titans of media and communications, is simple: The communications policy views of grant-making groups like the Open Society Institute and the Ford Foundation (not to mention Free Press) are inimical to the well being of media and communications companies.

It’s not entirely clear why the “progressive” moneybags’ lavish spending has not incited individuals with different political views, many of whom have amassed great wealth in the media and communications business, to fund non-profit organizations with more pro-business communications policy views.  Perhaps it’s because some of them, having gotten theirs and now in retirement, no longer care much what happens to the industry of which they were once a part.  Or maybe it’s because many don’t think of themselves, or want others to think of them, as “conservatives,” whatever that means in the context of communications policymaking.

But a likelier explanation is that many fail to understand what a threat to their own and their industry’s welfare some of these groups actually pose.  Perhaps because businessmen are very good at lobbying, and understand the ins and outs of PACs, they don’t see the need to engage their critics in the worlds of academia or think tankery.

It’s a mistake, that, because in truth it’s the people who deal in ideas – intellectuals and artists, activists and policy wonks – who are often the engines in the development of policy issues in which legislators and regulators are but the last people to board the train.  Witness, for instance, net neutrality.

As John Fund puts it, in the conclusion of his WSJ piece, “So the ‘media reform’ movement paid for research that backed its views, paid activists to promote the research, saw its allies installed in the FCC and other key agencies, and paid for the FCC research that evaluated the research they had already paid for.  Now they have their policy.  That’s quite a coup.”

                                                
The opinions expressed above are those of the writer and not necessarily of The Media Institute, its Board, contributors, or advisory councils.

The Intrinsic Menace in ‘Media Reform’

Christian theologians refer to the first three books of the New Testament as the synoptic gospels.  This, because of their similarities in content and order.  The new religion of “media reform,” whose principal tenet is that government needs to “save” journalism, is developing its own synoptic gospels – the gospel according to the Knight Foundation, Free Press, and just now rounding into view, the FCC.

For those who, until now, have enjoyed the luxury of knowing little about the handiwork of this threesome, a few words are in order:

The Knight Foundation (the vestigial remains of the defunct Knight-Ridder newspaper empire) is one of the country’s largest grant-giving foundations, with assets in the neighborhood of $2 billion.  Like Glenn Close in "Fatal Attraction" ("I won’t be ignored, Dan"), the Knight Foundation is not going away.

Through its gifts to educational and nonprofit organizations, the foundation funds journalism programs as its “signature work.”  It recently joined forces with the Aspen Institute to create the Knight Commission, the product of whose labor is the recently released report on the Information Needs of Communities in a Democracy (not to be confused with the information needs of community Democrats), an opus that, as reported here, is trivial and irrelevant, about 50-50.

Free Press is the absurd name of a paleoleftist organization that sees government influence over the media as a way to advance its larger political views, a point made both explicitly and inadvertently in the published opinions of the group’s founder and Maximum Leader, Professor Robert McChesney.  Free Press (or its lobbying arm, the Free Press Action Fund) convenes national “media reform” conferences; encourages laws and regulations that aim to increase the role of public media and reduce that of the commercial media; and coins amusingly infantile slogans like “Net neutrality: the First Amendment of the Internet.”

The FCC, of course, is the regulatory agency with sway over the affairs of the media, which, under chairman Julius Genachowski, has embarked on a number of “media reform” initiatives that parallel, if they aren’t in actual collaboration with, those of Free Press and the Knight Foundation.

Genachowski, for instance, was presented with a copy of the Knight Commission report at a publication ceremony at the Newseum, and in an interview with Broadcasting & Cable, the head of the FCC’s Future of Media initiative made explicit reference to the Knight Commission in answer to a question about what form his recommendations would take.

So what “media reform” policy positions do these organizations share?  As shown in their own comments or testimony, that of groups they fund, and/or that of others writing about them, at least three items can be identified.  They favor “net neutrality,” increased funding for public media, and an expanded role, through explicit tax breaks or other changes in the tax laws, for nonprofit organizations.

Looked at one at a time, and from a distance, none of these may seem like an unreasonable objective.  But taken together, and examined closely, they constitute a profound assault on some of our most cherished ideals about the media and its role in our national affairs.

Take “net neutrality,” for instance.  In both the literal and figurative sense of the term, network neutrality is the condition that obtains today.  Nobody is being favored or denied by ISPs of anything worth talking about.  But the proponents of net neutrality don’t want to leave well enough alone.  At the prospective cost of a reduced build-out of the broadband infrastructure (and the guaranteed intrusion of government into the affairs of the hitherto unregulated Internet), Free Press, the Knight Foundation, and the FCC want to codify and extend the Commission’s so-called Internet principles.

But by putting the camel’s nose of government under the tent of the Internet, codified net neutrality regulations would threaten the independence of the freest communications sector in the country, and thereby pose a direct challenge to both the letter and the spirit of the First Amendment, as well briefed by constitutional scholar Lawrence Tribe.

Proposals to change the tax laws so as to permit for-profit media companies to operate, in whole or in part, as nonprofits, or to explicitly authorize gifts to commercial media from nonprofit grant-giving foundations, or (as the Knight Commission recommends) to provide tax credits for investigative journalism, are similarly problematical.

As with net neutrality, the threat in amending the tax laws along these lines is that by doing so one lets the fox in the hen house.  How, for instance, would it be possible to insulate the media from charges of bias, and the concomitant threats to their tax-exempt status, when their political coverage offended one party or the other?  Might this not have the practical, if not the intended, effect of reducing the amount and kind of political coverage, like candidate endorsements?

Calls for greater funding of public media like NPR and PBS, through the Corporation for Public Broadcasting, are not so much constitutionally objectionable as they are ludicrously untimely.  Here we are as a nation, teetering on the brink of insolvency and with millions unemployed, and the recommendation is that we spend more taxpayer dollars on… public broadcasting?  Even without obliging PBS stations to commit suicide by requiring them to reorient their news programming toward local news (as all of the media reform advocates recommend), surely this idea is going nowhere soon.

Nor should it. News coverage by the public media in the United States represents a tiny, and because of that tolerable, adjunct to the vastly more important commercial media, whose independence from government is the sine qua non of its editorial independence.

Whatever one’s qualms or fears about the media of the future, the importance of independent (read: commercial) media is clear.  For this reason, the crisis in “medialand” is no cause to throw the baby out with the bath water, particularly where the “solutions” offered – like those of the media reform crowd – ignore decades of experience in the way the world works.

There are some people who understand this and some who don’t, but should.  An example of the former is FCC Commissioner McDowell who, in obvious discomfort by the direction the agency’s media initiative appears headed, has questioned the “constitutional, legal, and policy implications” of any government effort to “preserve or change journalism.”

Those who, in large numbers, do not get it include much of the “netroots nation” and progressives generally.  But here’s an exercise that might provide a cure for this.  Imagine a time, not too many years in the future, when the GOP controls the presidency, the House, and the Senate.  The Republican president has appointed a majority of the commissioners at the FTC and the FCC, and has, like all presidents, substantial influence with the independent agencies.

In this environment, how confident would progressives be that the Republicans would not attempt to use the FCC’s oversight of the Internet, as established through the years-earlier codification of net neutrality rules, or sway over the committees of Congress (and through it of the CPB), to influence the content of the media, commercial and public?

It is, of course, a rhetorical question.

First published here on The Huffington Post, Feb. 22, 2010.

The Knight Commission: Much Ado About Nothing

As in the title of the book about Southern belles, We’re Just Like You, Only Prettier, the report of the so-called Knight Commission, released on Oct. 2, is in some ways amusing and in other ways annoying.  It amuses in the way that it showcases the most pedestrian observations, as though they were the product of unique and weighty cerebration.  It annoys in the way that it pretends to a kind of grandeur and perspective – at precisely that moment in history when either would be useful – that it simply doesn’t possess.

Officially called the Knight Commission on the Information Needs of Communities in a Democracy, the Commission is a collaboration of the Aspen Institute and the Knight Foundation (assets pushing $2 billion), which paid for it all.  Early on the report makes clear that this is a commission with uncommon ambition and a high regard for itself.

Referring to the earlier Hutchins, Carnegie, and Kerner commissions, for instance, the Knight Commission co-chairs write: “In pursuing our work, we have been well aware that we are following in the path of other (emphasis added) distinguished Commissions.”  This, while a “background” document states that the Commission’s goal is to “start a national discussion – leading to real action.”

Given such a lofty calling one would expect the Commission’s observations to be trenchant and uniquely insightful.  One would be wrong.  From the foreword to the appendices, the Knight Commission report is a veritable cornucopia of the mundane, sortable into three categories: things that are already happening, and should be (like rapid broadband deployment by the private sector); things that are happening, and shouldn’t be (like the codification of the FCC’s net neutrality principles); and things that are not now happening and never will.

The best example of the latter comes in the Commission’s recommendation number 12 (of 15).  So as not to lose any of the rhetorical flavor of this recommendation, I quote parts of it verbatim: “Imagine,” they say, “a ‘Geek Corps for Local Democracy’ where, as a post-college opportunity, American youth volunteer to help connect a physical community to the networked infrastructure….  Geek Corps participants would teach community members how to use technology….  A Geek Corps would weave together the local and the national through networks of passionate youth.  Ideally, such a program would have the same stature as the Peace Corps or AmeriCorps, such that participants would be welcomed into jobs with open arms.”

Open, shmopen.  The notion that vast numbers of “post-college” American youth would (or should) line up for such a thing is the kind of idea that is dreamed up only by government bureaucrats – and nonprofit organizations that think like them.  How about getting or creating a job in the networked infrastructure, paying taxes, and buying things with whatever’s left over as might help the economy?

Speaking of rhetoric, that’s the other thing about the Knight Commission report.  Approximately every other paragraph, even the short ones, has the density of a black hole, so that after wandering into the first sentence you find yourself being stretched thin, like a strand of linguine, and by mid-graph frantically searching for a way out of the thing.

This said, if the only problems with the Knight Commission report were its immodesty, dense language, and commonplace insights, one could just ignore it completely and go about one’s business.  Unfortunately, however, the report is also marred by something else, specifically the timing and nature of its recommendations in the context of what is happening in the real world.

As it happens, on the very day that the Knight Commission released its report (on the premises of Freedom Forum’s Newseum, another billion-dollar foundation) the government announced that unemployment in the United States had reached 9.8 percent, and that more than 7 million people have lost their jobs since the onset of the current recession.

It is also a time when there is scarcely a state or municipality that is not on its financial uppers; when the national debt and federal deficit are at record highs; and when personal bankruptcies, home foreclosures, and credit card defaults are in the stratosphere and climbing.  To say that these data constitute an ongoing tragedy, and the deepest kind of threat to every person in this country, is not the tiniest exaggeration.

Enter into this environment a Knight Commission report whose recommendations are notable mostly for their exquisite attention to what, in the realm of communications policy, are little more than politically correct platitudes.  In this fashion, the report endorses things like governmental transparency, higher education, public libraries, broadband availability, net neutrality, diversity of media ownership, young people, old people, and ensuring that “every local community has at least one high-quality online hub.”  (If only there’d been an opportunity to say something about global warming.)

In other words, the Knight Commission report is frivolous and ill-timed.  This is the kind of report – with its recommendations of greater funding for public broadcasting, “public digital displays of news and culture,” a “federal tax credit for the support of investigative journalism,” and the aforementioned Geek Corps for Democracy – that should be released, if at all, only at a time when the country is so prosperous that people who should know better might actually go for it.

It didn’t have to be like this.  It would have been possible, even at this time, to create a commission that investigated the information needs of communities, in the context of our economic crisis, that was relevant and helpful.  It just didn’t happen.

To paraphrase Groucho Marx (“I’ve had a wonderful night, but this wasn’t it”), you can find some stimulating ideas about the future of journalism and the information needs of communities, but not in this report.

With Friends Like These

Signs of institutional meltdown are everywhere apparent.  Wall Street and Detroit are obvious examples, as are the states of New York and California.  But nowhere is the collapse of standards and credibility more alarming than among journalists and their profession.

Evidence of journalism’s implosion is seen not only in the declining readership and viewership of the MSM, and in public opinion polls, but also in the recent antics of journalists themselves and of those grant-giving foundations that support journalism programs.

A lamentably good example of the latter was provided last week by the Knight Foundation — the largest provider of funding for such programs at universities and nonprofit organizations — and by the Associated Press.

In a release dated June 15, the AP announced that it was launching a project “to distribute watchdog and investigative journalism from nonprofit organizations to its 1,500 member newspapers.”  Two days earlier, the Knight Foundation announced a new $15-million program of grants to several investigative news organizations.  Among them are two that the AP plans to include in its distribution, the Center for Investigative Reporting and ProPublica.

These two announcements herald the birth of what would have been unthinkable in better times, the spectacle of an established news organization like AP accepting and distributing handouts from third parties.

Such an arrangement is, and would be, objectionable even if the “investigative news” organizations in question possessed the qualities of balance and objectivity.  But these don’t, and you don’t need to be an investigative reporter to figure that out.

Take, for example, the best funded of them, ProPublica.  From their own website comes this revealing statement about their mission: “Our work,” they say, “focuses exclusively on truly important stories, stories with ‘moral force.’  We do this by producing journalism that shines a light on exploitation of the weak by the strong and on the failures of those with power to vindicate the trust placed in them.”

What this suggests, of course, is that ProPublica is likely to have little or no interest in some of the worst aspects of public policy in the USA.  Things like the disastrous dependency on government, forged after decades of welfare programs, in America’s inner-city neighborhoods.  Or like the ruinous role played by public employees and their unions on state and municipal finance.  Or the impact on the cost and provision of health care by ambulance-chasing trial lawyers.

Just by their mission statement it’s clear that ProPublica’s heart wouldn’t be in doing these kinds of stories.  But that’s not the only evidence of the organization’s unfitness for the role being given it by the AP.  There’s also the small matter of its founder and largest benefactor.

Billionaire Herbert Sandler and his wife, Marion (they’re always mentioned together because of the role each played in the founding of Golden West Financial), have painted, through their contributions to Democratic and leftist organizations like the Center for American Progress and Acorn, an unmistakable ideological profile, leavened with a fair amount of hypocrisy.

As Jack Shafer of Slate put it, in a piece published shortly after the Sandlers founded ProPublica in 2007: “What do the Sandlers want for their millions?  Perhaps to return us to the days of the partisan press … ProPublica’s Web site vows that its investigations will be conducted in a ‘non-partisan and non-ideological manner, adhering to the strictest standards of journalistic impartiality.’  But philanthropists, especially those who earned the fortune they’re giving away, tend not to distribute their money with a blind eye to the results.  How happy will they be if ProPublica gores their sacred Democratic cows?  Or takes the ‘wrong’ position on their pet projects: health, the environment, and civil liberties?”

Providing an almost comic dimension to the Sandlers’ ambitions is the fact that earlier this year Time magazine named them to their list of the “25 people responsible for the financial crisis,” and "SNL" did a skit in ’08 in which it was suggested that they should be shot.

Looming over the whole of the Knight/AP exercise is the elephant in the room that is the public’s growing lack of trust in the media.  A piece written last month by Melik Kaylan for Forbes.com summarized that distrust as follows:

“The Reagan years also ushered in the distrust of the Eastern-seaboard intellectual elites.  President Reagan understood and exploited the great divide between the heartland and custodians of news, who were chiefly in New York.  The two sides saw two different Americas.  Journalists and the institutions that formed their ideas saw a country composed largely of wronged minorities with fascinating grievances.  Much of the country saw itself as a unified coherent nation with its traditions under siege from insular power blocs who were back-scratching each other all the way up and down the seaboards.  Out of that disconnect grew the success of Rush Limbaugh, Matt Drudge, Ann Coulter, Fox News, the blogosphere and the great decentralizing force of the alternative media."

By an ironic coincidence, on the same day that the AP came out with its announcement, the Gallup organization released the results of a new poll of Americans’ ideological attitudes.  It found that conservatives outnumber liberals by a margin of 2 to 1.  More importantly it revealed that only 5 percent of the people consider themselves "very liberal," a designation that accurately describes the investigative nonprofits the AP and the Knight Foundation have now embraced.

Leave it to them to explain, as the media continue their march toward oblivion, how such a biased and shabby program will improve the public’s trust in the mainstream media or in journalism.

Journalists, and the future of the media. Part I

“Ladies and gentlemen, The Network News Hour with Sybil the Soothsayer … Jim Levitt and his Almost Truth Department … Ms. Madahare and her Skeletons in the Closet…. Tonight, another segment of Vox Populi….  And starring the mad prophet of the airwaves: Howard Beale!”  (From the movie “Network,” 1976)

Everyone of a certain age remembers the story of the unhinged anchorman, Howard (“I’m mad as hell and I won’t take it any more”) Beale.  Examples abound that playwright Paddy Chayefsky was onto something.  Keith Olbermann comes to mind – and all the more so after MSNBC took the highly unusual step of removing him from his anchor post for being too far over the top.  Where journalism is untethered to standards of professionalism, and ratings are all, journalism suffers.

But the sullying effect of entertainment values on journalism is well understood.  The thing that’s less well understood, and a much more intractable problem, is the role of journalists in the decline of journalism.

From their tiny and parochial grasp of the speech clause of the First Amendment, to their growing embrace of opinion rather than objectivity, to their response to all things Internet, the performance of much of the national press corps these days seems – to borrow a phrase from Malcolm Muggeridge – like the antics of an exhausted stock.

Journalists’ knowledge of and support for the First Amendment can be measured by the things they promote and the things they do not. They favor access to government information, the right not to have to reveal their sources, and weak libel laws.  And leaving room for a little quibbling around the edges, all of these are good things.  But note the parochialism.  Journalists want access to information in the same way, and for the same reason, that fishermen want access to nets.  The point being that, whatever the intrinsic public good, and it’s manifest, access to information is a practical need of journalists.

But what about the speech needs of people who are not journalists?  Like the commercial speech of advertisers of legal products?  Or the speech of college students, circumscribed by campus speech codes?  Or the political speech of groups or individuals who, close to the date of federal elections, wish to make political arguments through issue ads?  Or, even within the industry, of the right of media companies not to have to yield to onerous and government-mandated “public interest” obligations?

On these and other First Amendment issues, far too many journalists are silent if, as with campaign finance reform, they aren’t actually on the other side.

Controversy over media coverage of this year’s extraordinary presidential election campaign opens a window on another journalistic sore spot, the twinned issues of objectivity and media bias.  In an article dated 9/3, Howard Kurtz of the Washington Post observed, without a hint of irony, that “denouncing the news media as biased plays well with many Republican voters.”

A similar observation was made the next day in an article in the New York Times. “If there is one mission Mr. McCain wants to accomplish at his convention,” it says, “it is to galvanize conservative voters who have shown signs of depression this year.  Traditionally, one surefire way to do that has been to attack the ‘elitist’ mainstream news media.”

But whether we’re talking about conservatives, who represent maybe one-third of the country, or Republicans who, at least at election time, represent half, the obvious question is why do they feel this way?  Why is it that attacking the media is a “surefire” way to galvanize Republicans and conservatives?  In all the years that I’ve been watching presidential campaigns, I don’t ever recall reading a similar line about Democrats, or about liberals for that matter.

It’s true, of course, that there are people to the left of liberals who are critical of the media.  But the great divide in American political life isn’t between Republicans and conservatives on the one hand, and Marxists and leftists on the other. It’s between Republicans and Democrats, conservatives and liberals.  And thus, when journalists suggest, as they have for decades, that the existence of critics on the left as well as the right proves that their efforts are balanced, they miss the pregnant truth by a mile and persuade no one.

At what may be a tipping point for all of the professional media, isn’t this a problem that the industry should redress?  Is there any other industry that, upon hearing that half of their market feels they’re being dissed, wouldn’t move to correct, or at least ameliorate, that problem?

Of course the media are different from other industries in another way too.  Owing to the “firewall” erected over time between the journalistic “product” and the management of the companies that own that product, the news industry is the only one in which corporate management exercises little control over what its writers, reporters, and editors produce – little control, in other words, over their very products.

So with management hamstrung by the firewall convention, who is willing and able to mind the store, so to speak?  Certainly not those institutions that exist to fund, study, promote, and chronicle contemporary journalism.

Of the handful of foundations – like the Knight Foundation – that routinely provide funding for journalism-related programs at universities and nonprofit organizations, all share a mindset, whatever their funding priorities, that can be characterized as Old Newspaper.  As such, they cling to journalistic notions that are outdated, uninformed, and fundamentally irrelevant.  And what is true of the foundations is true, and then some, of the rest of the journalism infrastructure: TV critics, media reporters, ombudsmen, and the journalism reviews.

If, as they say, war is too important to be left to generals, perhaps it’s not too much of a reach to say that journalism is too important to be left to journalists.

Next: The Internet and its growing impact on journalism.