comment review 04-06-09

a wow comment from leo. (sorry about the wonky formatting)

29.
Leo Linbeck III:
Newspapers and urban Catholic schools are in a similar
position. They are each collapsing under the weight of an outdated business
model.

Newspapers get revenue from ads and subscriptions. Ads are going
away, particularly the cash-cow category of want ads, which have all be left for
Craigslist and eBay. And subscriptions are falling as people move to free
sources of news, primarily on the internet.

Catholic schools get revenue from tuition. But low-income families can’t afford the tuition, and are moving to free sources of high-quality education like magnet and charter schools. Newspapers rely on high quality reporting to get and keep their readers. This reporting is compromised as costs must be reduced to match the drop in revenues. Reporters are now very poorly paid, which has resulted in a drop in
quality as good writers seek other outlets for their talent. Most of the folks
left in the profession are those trapped in a romantic dream of “making a
difference” and able to survive with sub-standard wages.

Catholic schools rely on high quality teaching to get and keep their students. This teaching is compromised as costs must be reduced to match the drop in revenues. This problem is made worse by the fact that in the past 50 years, the percentage of religious staff (i.e. nuns, priests, and brothers) - those who used to make the system
work financially because they worked for free - has fallen from 90% to 7%. Most
of the folks left in the schools are those trapped in a romantic dream of
“making a difference” and able to survive with sub-standard wages (Catholic
schools pay 30% less than public schools).

Newspapers have played an important role in our culture, providing a service to the community by informing the masses and some kind of check on the power-hungry government.

Catholic schools have played an important role in our culture, providing educational
choice to the poor and some kind of check on the monopoly school district.
One big difference, however, is what comes after their demise. In the case
of Catholic schools, we know the answer: public schools, particularly charter
schools. But in the case of newspapers, who knows?

One thing is certain: there will still be a demand for both high-quality news and schools. Left to its own devices, entrepreneurs will find a solution - where there is demand, supply is soon created.

The biggest threat to both is that our betters in government will use this opportunity to return to a monopolized system, controlled by them. And here’s what we know about monopolies in the long run:

1. They produce crap.

2. They exploit their workers, thus necessitating a union.

3. They develop a symbiotic relationship with the union, thus driving up
prices and restricting supply, with the union and the monopoly protecting and
enriching each other at the expense of the consumer.

4. They co-opt the government (aka regulatory capture).

5. They stifle innovation.

A future in which the government effectively controls both the education of children and the informing of adults is a sad and frightening prospect.

Almost as sad and frightening as the New York Times.
L3
Apr 4, 2009 - 8:15 pm