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Fighting big money in politics: California’s Community News Act
This article originally appeared on Dean Baker’s Patreon. It is reprinted here with permission.
Virtually everyone who is not a billionaire, or owned by one, agrees that we have to limit the ability of the rich to buy elections. While the Republican Party has taken “policy for sale” politics to a new level, there are plenty of Democrats who have been happy to support obviously awful policy in exchange for contributions from the AI industry, the pharmaceutical industry, the crypto industry, and Wall Street more generally. It costs a lot of money to run a competitive campaign and it’s hard to raise that from small contributions, so there will always be a temptation to bend policy positions to get some serious money.
While most people favor limits on campaign contributions, the current Supreme Court has made this very difficult. They have ruled that campaign contributions are speech and therefore any effort to limit campaign contributions is an unconstitutional restriction on speech.
There are some promising alternative paths that focus on making small donors matter. Seattle has a system of “democracy vouchers” that give every voter in local elections a modest sum that they can contribute to a candidate(s) of their choice. To qualify to get the vouchers, candidates must agree to limits on spending and large contributions.
Super-matches are a comparable system. Under this system, small dollar contributions can be matched up to 8 to 1, which means that even a $50 contribution can make a difference to a campaign. New York City, along with several other cities, have gone this route.
While these paths for amplifying the voice of ordinary people are promising, it will take much more to match the power of the billionaires. It is important to realize they exercise their political power in ways other than campaign contributions, primarily through their ownership of the media.
The importance of billionaire ownership goes far beyond the constant stream of lies and right-wing propaganda from Fox News. Last year, the very Trumpy Ellison family took control of CBS and immediately began to shift its news to the right. They are now taking control of CNN through the merger of Paramount and Warner Brothers. They also got control over TikTok, after Trump wrestled it away from a Chinese company for them.
Trumper Mark Zuckerberg owns Facebook and Instagram and is not shy about banning political material he doesn’t like. And Elon Musk bought Twitter, explicitly to advance his right-wing agenda. The rest of the media landscape doesn’t look much better. The rich and very rich own the countries’ newspapers and broadcast outlets, and most of these people lean right, even if they have not yet joined the Trump Reich.
And let’s just be clear. The idea that the campaign ads bought by the rich can influence votes, but not the material that people see between the ads, is beyond absurd. Even if we banned all political contributions from rich people and corporations, the rich could still control elections by showing us nothing but their propaganda on television, in newspapers, and on social media.
This is why the Community News Act that Governor Gavin Newsom just signed is so important. The measure provides $20,000 each for up to five journalists per news outlet covering local news. This subsidy can keep newspapers and news sites across the state in business and help to support new ones that might start up. It is similar to other programs that have been started in Illinois, New York, and New Mexico.
This might seem like small change in a world with multi-billion dollar media empires, but it is not realistic to imagine matching the super-rich dollar for dollar; the goal is to sustain reality-based reporting that people can rely upon. (Repealing Section 230 protection for the mega-platforms like Facebook and X would be a big step towards leveling the playing field.) And support for local news reporting is likely to also lead to better national and international reporting, both by training more reporters and also increasing the comfort level with public funding, perhaps opening the door for a national system.
To be clear, there are no political conditions attached to this funding. Conservative news outlets are as eligible for this subsidy as more liberal ones. The point is to support local journalism, not to favor a particular political perspective.
To my view, this system is not ideal. I prefer support coming through an individual refundable tax credit to support local news. This would allow people to have a more direct attachment to the news outlets being supported with public money. Ideally, this would give them a sense of ownership that many feel towards other community organizations.
But whether or not this is the best approach, there is no doubt that the California bill, along with the ones already passed in other states, are big steps forward. It will help to reverse the collapse of local news reporting, which is giving corruption free rein in many areas. We need to build on the positive and make it better, rather than reject a plan because it may not be ideal. Progressive opponents of California’s wealth tax initiative may want to give that point some thought.
