Connecticut Lawmaker Frank Nicastro's Proposal for Government Bailout of Local Newspapers Smacks of Socialism

The notion that the government should bail out just about every industry in the United States is unconscionable. I have yet to hear one bailout plan to help struggling homeowners and to stem the massive tide of unemployment slowly permeating this country. I was disgusted to learn that Connecticut lawmaker Frank Nicastro sees saving the local newspaper his responsibility. This will set a very worrisome precedent for the government to get involved with the press. Socialism comes to mind. Heck, even the dreaded communism comes to mind.

Nicastro represents Connecticut's 79th assembly district, which includes the city of Bristol. Its paper, The Bristol Press, reportedly may collapse within days, along with The Herald newspaper in New Britain. It seems that the parent company, Journal Register, is in serious jeopardy of folding due to millions of dollars debt and it says it just cannot afford to keep these papers open. So, enter Nicastro on his stallion, along with fellow lawmakers who want to the papers to survive and have petitioned the state government to step in. "The media is a vitally important part of America," he said, particularly local papers that cover news ignored by big papers and television and radio stations. Wait, doesn't this sound like a bailout?

This comes on the heels of the government's decision to literally throw billions away to the banks and to General Motors Corporation and Chrysler LLC. The broader issue with this latest proposal is that relying on government help raises significant ethical questions for the press, whose traditional role has been to operate free from government influence as it goes after politicians to hold them accountable to the people who elected them. You cannot have it both ways. It would definitely muddy the mission of the press in the grand scheme of things.

The lifeline comes as U.S. newspaper publishers such as the New York Times, Tribune and McClatchy deal with falling advertising revenue, fleeing readers and tremendous debt. Aggravating this extreme change is the world financial crisis. Publishers have slashed costs, often by firing thousands in a bid to remain healthy and to impress investors. Any aid to papers could gladden financial stakeholders, said Mike Simonton, an analyst at Fitch Ratings."If governments are able to provide enough incentives to get some potential bidders off the sidelines, that could be a positive for newspaper valuations," he said.

Many media experts predict that 2009 will be the year that newspapers of all sizes will falter and die, a threat long predicted but rarely taken seriously until the credit crunch blossomed into a full-fledged financial meltdown.Some papers no longer print daily, and some not at all. Even as industries deemed too important to fail are seeking bailouts, most newspaper publishers have refused to give serious thought to the idea, though some industry insiders recounted joking about it with other newspaper executives."The whole idea of the First Amendment and separating media and giving them freedom of control from the government is sacrosanct," said Digby Solomon, publisher of Tribune Co's Daily Press in Newport News, Virginia. Source: Reuters

The government does not have an obligation to preserve free press by bailing them out. Many have accused Barack Obama of being a socialist, but this proposal reeks of socialism at it worst. Sorry, taxpayer dollars are not to be thrown out to everyone with a cup. There are other incentives that can be offered to help these newspapers, but not for the government to offer a bailout. What about the taxpayers who are literally under water in their homes. I must say that 2009 will be a rather interesting year.

The residents of Bristol and surrounding areas should call Frank Nicastro's office and voice their disapproval for his proposal. His contact information is:

At the Capitol:
Legislative Office Building, Room 4061
Hartford, CT 06106-1591
(860) 240-8585
1-800-842-8267
Frank.Nicastro@cga.ct.gov

In the District:
80 Beleden Gardens Drive
Bristol, CT 06708
(860) 585-6070