The Economic Cost of Trump's War on The Press | Diving In
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Why did the Trump administration pull press badges from CNN, MS Now, and Politico?
The White House didn't just criticize CNN, MS Now and Politico. It removed their access. And that fits a larger pattern. The administration has systematically been building leverage over the institutions that are supposed to report on it. This is dangerous. This isn't just a question of democratic theory. This is also an economic issue. This week, President Trump kicked CNN, MS Now and Politico out of the White House. He says they're reporting as fake news. And I think I have an obligation not to let fake news. They're very bad for the country, very bad for national security. So I have that obligation. So we'll see how it works out. The reporters, all their badges were confiscated. Now Presidents complaining about the press, that's not news.
George Washington probably thought the newspapers were a pain in the neck. He just had the good sense not to tweet about it. But this is different. The president's using the power of his office to decide who gets to watch him at work, who gets to ask questions, who gets close enough to ask his staff what they're thinking. Now a lawyer's gonna tell you there's a First Amendment issue here. The Constitution defends the freedom of the press. True. I want to ask a different question. It's an economic one. How does a freer, independent press affect the quality of government? And what happens when a president gets leverage over the media? That's supposed to report on him. Because this ban, it's part of a growing list.
The White House took control of the press pool. It restricted the associated press after a fight about language. President Trump sued big news organizations. ABC settled one case.
How does a freer, independent press improve voters’ knowledge of government performance?
Paramount paid $16 million to settle another, right when it wanted federal approval for its merger with Skydance. And Brendan Carr, Trump's FCC chair, These reopened complaints against broadcasters, threatened their licenses over coverage, and pushed early scrutiny of ABC stations.
We're gonna see where this investigation goes.
So are you threatening to pull their license? Wouldn't that be a pretty drastic step? Well,
it's not a threat. That's a penalty that is in the Communications Act. And if you don't
But when was the last time the FCC pulled a broadcast license?
Yeah, it's been a long time, and I think that's part of the issue. If you step
any one of these, you could wave off as a coincidence. Put them all together though, and it adds up to a systematic attempt. To take control over what had previously been a free press. So let's dig into the economics of the free press. We'll explore the cutting edge economics research on this question and together. We're going to explore four big takeaways about the role of the press in our society, democracy, and economy. First, we'll explore the evidence that shows that a freer press helps voters see where the government is actually doing its job. Second, we'll see how media coverage changes what politicians do, and we'll dig into examples that show how this actually leads to better government. Third, we'll explore the economics of why governments lean on the media.
And fourth, there's good data that shows that when scrutiny weakens, government gets worse, corruption gets easier, and the economy suffers. I'm Justin Wolfers. This is Platypus Economics, and today we're going to talk about what economics can tell us about the need for a free press. Okay, let's begin. Let's start with a fact. Rich democracies tend to have freer presses. They also tend to be higher income, less corrupt, and better governed. But that doesn't tell you the whole story, because maybe a free press helps the government work better. Maybe well-governed countries just happen to permit a free press. Maybe independent courts, education, prosperity, democracy, and press freedom all travel together as a package.
Correlation. That's what I was just talking about. That's cheap. What we really want is causation.
What evidence shows that media coverage changes politicians’ behavior?
And that's why today I'm going to tell you stories. But these are a special kind of story. Economists and political scientists hunt for what we call natural experiments, moments when nature or institutions change media access in one place, but not another, for reasons that have nothing to do with local politics.
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Chapters
8 chapters
1
Why did the Trump administration pull press badges from CNN, MS Now, and Politico?
0:00–1:34
2
How does a freer, independent press improve voters’ knowledge of government performance?
1:34–3:46
3
What evidence shows that media coverage changes politicians’ behavior?
3:46–6:24
4
Why do governments rely on the press for political accountability?
6:24–9:02
5
How does a strong local press deter corruption in places like Brazil and Mexico?
9:02–11:19
6
What are the economic costs when local newspapers close in the United States?
11:19–13:43
7
How do regulatory tools (FCC licensing, merger approvals) give presidents leverage over media?
13:43–16:24
8
What is the overall economic impact of a free press on democracy and growth?
16:24–18:48
Speakers
1 identifiedMore from Platypus Economics with Justin Wolfers
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