Let’s begin with Europe, where most countries have been subsidizing the press, both directly and indirectly, for decades. In Scandinavia and a few central European countries, some newspapers receive lump sums from the government. Sweden has a particularly streamlined subsidy system that was implemented in 1971. Karl Erik Gustafsson, a professor of media economics at Jönköping International Business School, created the system, which was designed to preserve newspaper pluralism by allocating money to all papers except the dominant paper in a given region or city. Since these subsidies have been in place, there has been a substantial reduction in newspaper closures, and Sweden has avoided the inevitable effect of the free market on the daily press: the one-newspaper town. The subsidies are distributed by The Press Subsidies Council, an administrative governmental body, and are based on circulation and revenue data. “The rules are automatic,” explains Gustafsson. “They are in no way subjective. It’s an open system and every newspaper knows exactly what the subsidy will be this year and the coming year. I think the newspapers have become stronger in their criticism of the political parties due to the state subsidies. Earlier, they were more partisan, more dependent on the money from the parties.” (Historically, newspapers in Europe received substantial funding from political parties, as they once did in the U.S.) “Now they can say, ‘We don’t care. We get our money from the state.’” Hallin, who specializes in comparative media systems, observed that when the press subsidies were introduced, it was “exactly in that period that there was a shift in Scandinavia toward a more adversarial press. It is actually very strong evidence that press subsidies don’t lead journalists to be timid.”
Newspapers in most European countries also benefit from a reduction in or an exemption from the Value Added Tax, which ranges from approximately 15 to 25 percent. Other press subsidies in Europe include corporate tax exemptions, grants for start-up ventures or technological innovations, state loans, grants for journalism research and training, and regulations requiring that government advertising appear in multiple publications. (In France, individual journalists enjoy a substantial income-tax deduction.)
In addition, all European countries have robust and well-funded public broadcasting systems that dwarf America’s. The U.K. spends nearly $7 billion a year on public broadcasting—the money comes from an annual television tax—while the U.S. Congress allocates roughly $480 million. Certainly, the BBC has had its problems, most notably during the Thatcher era, but the value of the BBC’s news and investigative programming surely outweighs the harm from the handful of instances in which government tried to influence or censor content. “The BBC is at least as independent politically if not perhaps somewhat more independent than the commercial networks in the U.S.,” says Hallin. “People assume that if the government pays for it, it will control it, and so the media will be less free. The truth is that the experience of European countries suggests that’s not actually the case.”
In addition to the valuable models of press support in Europe, there are scholars and journalists in the United States who are devising governmental solutions of their own. Free Press has been developing a new model of funding for public broadcasting and public-service journalism that would reduce political influence by eliminating the congressional appropriations process and politically appointed leadership. It proposes establishing an independent trust, funded by a ten-year tax on broadcast advertising revenue. Many European countries raise funds for media subsidies through a tax on advertisers. (In the U.S., the government does not tax advertisers or advertising revenue but does allow businesses to deduct all advertising expenses.)

How horrifying!
This piece certainly follows Noam Chomsky’s critique of corporate media: That members of the press cannot truly free themselves from their financial masters.
But what could be worse than government-funded media, in terms of keeping it free? It directly militates against the reason the Founders wanted a free press to exist in the first place: To hold government accountable.
What a frightening and Orwellian thought. I warn the Left now: keeping the New York Times and Washington Post may sound enticing now, but if you succeed in funding the media with taxpayer dollar, and then inevitably warping its coverage in favor of government solutions, expect the Right to take it over as it has the Supreme Court. And then you will live in an awful world: One in which the next George W. Bush controls the - formerly - liberal media.
Be warned.
Posted by chris
on Thu 27 Sep 2007 at 06:07 PM
What amuses me about this is that the gnashing of teeth surrounds the importane of journalism, but what we're really trying to do is save newspapers... just one form of journalism. The devil's advocate might suggest that if print journalism can't compete with online journalism, perhaps it is time for evolution.
Posted by jtcomm
on Fri 28 Sep 2007 at 01:18 PM
Hallin assumes that we have fewer reporters. I assume he means in the "print media" (and, possibly, television). If we assume that anyone who reports news is a reporter then we must include large numbers who post to internet blogs, newgroups, forums, and wikis. No shortage of reporters there.
Posted by eris23
on Sun 30 Sep 2007 at 01:52 AM
When the founding fathers were talking about the press, they meant just that, a printing press. Not media conglomerates. The closest we have to their vision are blogs.
Also, I quit reading when the article started being about what is done in Europe. My ancestors left Europe a long time ago and I really don't care how things are done there.
Posted by John Davies
on Tue 2 Oct 2007 at 04:57 PM
To think that the founders would approve of subsidies for media outlets makes me shudder. Whatever government supports, it eventually winds up controlling. I know do nothing journalists would love subsidies so they can continue producing mediocre work, but they should remember that he who signs the check ultimately controls your work
Posted by TDC
on Wed 3 Oct 2007 at 11:44 AM
We're creating a pro/con article on Debatepedia on this topic. Excuse the fact that it's a little underdeveloped to start, but that's the point.
http://wiki.idebate.org/index.php/Debate:_Should_governments_subsidize_journalism
Posted by Brooks on Fri 1 May 2009 at 12:00 AM
Brooks:
Great article - I will keep an eye on it to see how it progresses.
Larry
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Posted by Larry on Sun 24 May 2009 at 12:06 AM