Jim Hightower

Free the Free Press from Wall Street Plunderers

A two-panel cartoon I recently saw showed a character with a sign saying: “First they came for the reporters.” In the next panel, his sign says: “We don’t know what happened after that.”

It was, of course, a retort to Donald Trump’s ignorant campaign to demonize the news media as “ the enemy of the people.” But when it comes to America’s once-proud newspapers, their worst enemy is not Trump – nor is it the rising cost of newsprint or the “free” digital news on websites. Rather, the demise of the real news reporting by our city and regional papers is a product of their profiteering owners. Not the families and companies that built and nurtured true journalism, but the new breed of fast-buck hucksters who’ve scooped up hundreds of America’s newspapers from the bargain bins of media sell-offs.

The buyers are hedge-fund scavengers with names like Digital First and GateHouse. They know nothing about journalism and care less, for they’re ruthless Wall Street profiteers out to grab big bucks fast by slashing the journalistic and production staffs of each paper, voiding all employee benefits (from pensions to free coffee in the breakroom), shriveling the paper’s size and news content, selling the presses and other assets, tripling the price of their inferior product – then declaring bankruptcy, shutting down the paper, and auctioning off the bones before moving on to plunder another town’s paper.

By 2014, America’s two largest media chains were not venerable publishers who believe that a newspaper’s mission includes a commitment to truth and a civic responsibility, but GateHouse and Digital First, whose managers believe that good journalism is measured by the personal profit they can squeeze from it. As revealed last year in an American Prospect article, GateHouse executives had demanded that its papers cut $27 million from their operating expenses. Thousands of newspaper employees suffered that $27 million cut in large part because one employee – the hedge fund’s CEO – had extracted $54 million in personal pay from the conglomerate, including an $11 million bonus.

To these absentee owners and operators, our newspapers are just mines, entitling them to extract enormous financial wealth and social well-being from our communities.

The core idea of the “civic commons” is that we are a self-governing people, capable of creating and sustaining a society based on common good.

A noble aspiration!

But achieving it requires a basic level of community-wide communication – a reliable resource that digs out and shares truths so people know enough about what’s going on to be self-governing. This is the role Americans have long expected their local and regional newspapers to play – papers that are not merely in our communities, but of, by, and for them.

Of course, being profit-seeking entities, that are usually enmeshed in the local moneyed establishment, papers have commonly (and often infamously) fallen far short of their noble democratic purpose. Overall, though, a town’s daily (or, better yet, two or more dailies) makes for a more robust civic life by devoting journalistic resources to truth telling.

But local ownership matters, as some 1,500 of our towns have learned after Wall Street’s corporate demigods of greed have swept in without warning to seize their paper, gut its journalistic mission, and devour its assets. For example, Digital Media, a huge private-equity profiteer, snatched the St. Paul Pioneer Press and, demanding a ridiculous 25% profit margin from its purchase, stripped the newsroom staff from a high of 225 journalists to 25!

As Robert Kuttner reported, these tyrannical private equity firms are paper constructs that produce nothing but profits for faraway speculators. He notes that the blandly-named entities only exist “thanks to three loopholes in the law” – the first lets them operate in the dark, the second provides an unlimited tax deduction for the massive amounts of money they borrow to buy up newspapers, and the third allows them to profit by intentionally bankrupting the paper they take over.

Our right to a free press is meaningless if Wall Street thieves destroy our communities’ presses. The good news is that many enterprising people are devising ways to rescue their newspapers. For more information, go to dfmworkers.org.

Editor's Note: This column was rejected for syndication by Creators Syndicate. See the report on the controversy by the Austin Chronicle.

Putting the Trump Stamp on the Public

D.T. (as aides refer to the present occupant of the Oval Office) is really quite good at one special skill: branding. He has slapped his name on a ridiculous range of consumer merch — teddy bears, steaks, made-in-China ties, vodka, underwear and even a urine test. His nasty policies and behavior steadily turned the brand toxic, as only two merchandisers have kept his name on their products. Still, some two dozen towers, condos, palaces and other glossy real estate edifices blare his name, and 17 global golf meccas proclaim his ostentatious wealth. Then, of course, there’s his very own post office.

Yes, he bought a 60-year lease on the “Old Post Office Pavilion,” an iconic 1899 federal structure that once housed our country’s postal service and has also been the home of various other national government agencies. Located just five blocks from the White House, D.T. and daughter Ivanka had it converted into a 270-room hotel for the rich in 2016. “The Trump International Hotel Washington, D.C.,” boasting gold-trimmed bathrooms and a 5,000-square-foot suite in what once was the office of America’s postmaster general. The suite can be yours for about $25,000 a night (but that’s a bargain compared to a bigger presidential suite that The Donald named for himself, charging up to $29,000 for a one-night-stay, plus $4,000 in taxes). Branding the once-public facility with the family name was “really important,” Ivanka declared at the launch of the redo. “You’ve got to be careful,” she explained. “You can’t allow people to walk by thinking it’s a post office.”

Daddy agrees. Now that he’s in the White House, he wants to bring the family’s sensibility for branding to our local POs. The Trumpsters say it’s time to turn this historic public service over to the magic of the free market profit motive and the efficiency of bottom-line corporate management. You know, like airlines and cable companies.

This spring, Donald signed an order creating an inter-agency federal task force to propose structural reforms in the U.S. Postal Service. In a stunningly short time — shazam! — the task force (comprised entirely of top Trump officials) issued its cursory report only 10 weeks later, with a key recommendation that fit their base to a T: “Prepare (USPS) for future conversion from a government agency into a privately-held corporation.”

Are they not aware that the mail agency is enormously popular and important to the public? A February Pew Research poll finds that an astonishing 88 percent of Americans give a thumbs-up to the PO’s work, dwarfing the pitiful approval rating of Trump and the congress critters who’re trying to kill it. Even the president’s executive order that set up the task force conceded that our postal service “is regularly cited as the Federal agency with the highest public approval rating.”

The 640,000 middle-class postal workers and letter carriers merit such kudos because they literally deliver for us in every ZIP code. Working from 30,825 local POs, they trundle 150 billion pieces of mail a year, 4 million miles a day to 157 million addresses across the land, from inner-city neighborhoods to back roads—and deliver them within a few days. They carry their loads door to door, ride snowmobiles, fly bush planes, run mailboats and even ride to the bottom of the Grand Canyon on mules to reach us. USPS does all of this without taking a dime in taxpayer funds, financing its operations entirely from its sales and services to customers.

This is an unmatched bargain, a civic treasure, a genuine public good that links all of America’s people and communities into one. And that’s why the right wing is so dead set on offing it. For decades, extremist anti-government propogandists (from the John Birchers to the Koch brothers) have relentlessly pushed the narrative that government is inherently incompetent, wasteful and “the problem” — a social evil that is to be hated and, piece by piece, eliminated.

The problem for these ideologues and corporate predators is that USPS is not only a government agency that works, but a tangible presence in people’s daily lives, so millions of folks see it working for them. Therefore, to maintain the negative political narrative about public entities, the far-right corporatists are desperate to kill our public post offices. For more information and to keep the post office public, go to USMailNotForSale.org.

Former Texas agriculture commissioner, former Texas Observer editor and populist sparkplug Jim Hightower is a best-selling author and winner of the Puffin/Nation Prize for Creative Citizenship. Write him at 81 San Marcos St., Austin TX 78702 or see www.jimhightower.com. To subscribe to his monthly newsletter, the Hightower Lowdown, call toll-free 1-877-747-3517.

From The Progressive Populist, January 1-15, 2019


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