"It would take an endowment of billions of dollars to produce enough investment income to run a single sizeable newspaper," Downie and Schudson write, "much less large numbers of papers in communities across the country."

But would it really? At another point in the article they note that the Baltimore Sun is down to 150 reporters--but it seems like you'd still have to call that a "sizeable newspaper," able to do a great deal of the "accountability journalism" that Downie and Schudson are rightly focused on...particularly since, based on the figures they give, the typical state capital only has seven full-time reporters. Let's say you can hire a reporter for $100,000; that would give you a journalistic payroll of $15 million.   To get that using the average rate of return for college and university endowments for 1998-2007, you would need a nest egg of about $174 million.   If you had an endowment of $2 billion and got that rate of return, you could hire more than 1,700 reporters--maybe that's what Downie and Schudson mean by "sizeable."

Is it possible for the public to amass that kind of funding to support journalism?  The same group that provided the college investment income figures, the National Association of College and University Business Officers, reports that a total of 785 academic institutions across North America had a combined endowment of $411 billion--enough to hire 350,000 reporters.

Education is important; so is journalism.  The difference is that our society recognizes that capitalism is not going to provide us with all the educational institutions that we need.  When we realize that the same thing is true for journalism, we'll be able to find the resources.

The FTC said that beginning on December 1, bloggers who review products must disclose any connection with advertisers, including, in most cases, the receipt of free products and whether or not they were paid in any way by advertisers, as occurs frequently....

For bloggers who review products, this means that the days of an unimpeded flow of giveaways may be over. More broadly, the move suggests that the government is intent on bringing to bear on the Internet the same sorts of regulations that have governed other forms of media, like television or print.

"It crushes the idea that the Internet is separate from the kinds of concerns that have been attached to previous media," said Clay Shirky, a professor at New York University.

The strange thing here is the idea that such disclosure rules are "the same sorts of regulations that have governed other forms of media, like television or print." When's the last time you saw a print or TV book or music review that mentioned that the reviewer didn't pay for the book or album under consideration? Such freebies aren't even considered unethical--unlike the practice of restaurant critics getting free food, or travel writers getting free trips, though such deals happen often and are generally not disclosed when they do. One would think that Tim Arango, the author of the Times piece, would be more familiar with how print journalism operates.

Wired.com has more on the general kookiness of the proposed regulation.  Apparently amateur bloggers will have to disclose freebies, while professional websites--and traditional media outlets--won't. The logic, if you can call it that, is that if you can afford to pay for it yourself, then you don't have to.

I quit ABC a couple weeks ago partly because they didn't like what I was doing. They viewed it as too biased.

Yes, ABC promoted Stossel to 20/20 anchor, gave him regular "Give Me a Break" commentary segments and one-hour, factually challenged primetime specials...all because they didn't like him. It's scary to think what the network would have done if they did like him.

While Beck and his ilk want to portray diversity and localism as a dangerous conspiracy to censor, the fact remains that these ideas have been staples of communications policy since the beginning. The central mandate of the Federal Communications Commission--as enshrined in the Communications Act of 1934--is to promote localism, diversity and competition in the media. This same principle of localism has been a rallying cry for several generations of true conservatives.

Broadcasters get hundreds of billions of dollars' worth of subsidies and the right to use our airwaves in exchange for a basic commitment to be responsive to the interests of local communities.

Moreover, the Supreme Court recognized that "safeguarding the public's right to receive a diversity of views and information over the airwaves is ... an integral component of the FCC's mission."

Sadly, the FCC has failed to live up to this standard.

"What mainstream media's fear-merchants are most afraid of," writes Karr, "is not censorship, but an FCC that actually does its job--creating more opportunities for people like you and me to participate in media."

See the FAIR publication Extra! Update: "The Great Spectrum Giveaway" (10/95) by Jim Naureckas.

The fact is, and as immodest as it may seem to say, independents were repeatedly ahead of the curve on covering the mortgage and real estate bubble and in connecting the dots between vital elements of the bigger story—especially the links between predatory and lending and the metastasizing mortgage-backed securities market.

In 2002, the Nation warned that the mortgage-backed securities market’s bottomless appetite for subprime mortgages was financing an epidemic of destructive lending. In 2003, Southern Exposure exhaustively documented Citigroup’s move into the mass production of high-interest loans designed to drain borrowers' meager wealth. In 2005, Mother Jones assigned me to find out why the streets of Cleveland were lined with vacant houses. A reasonable question, and I found the answers on the Wall Street credit securities market. Indeed, all through this period, alt-weeklies told tales found in living rooms and legal services offices of homeowners who had believed a mortgage broker’s misleading sales pitch and wound up facing foreclosure.

Examining "the fact" that "independent journalists exposed the dimensions of the problem with a depth and timeliness that mainstream news organizations simply and regrettably did not match," Katz thinks "it's not about being better journalists; it is about being tuned to a different audience and set of interests." Read FAIR's magazine Extra!: "Busted Bubble: The Press Fell Down on the Job on Housing Prices" (11–12/08) by Veronica Cassidy.