I have just weathered through once again a very volatile market and this made my experience in self dirtied investing more exciting. While Smith (1982) has argued that the capitalist system provides firms incentives to produce efficiently, Bagdikian (2004) has argued that the news media do not use their incentives to compete with each other, leading to inefficient outcomes. The news media’s support for free market ideals creates a pro-market bias, which is an example of an inefficient outcome of the news media’s lack of competition. When you’re ready to find your first stock, your first stop should be the FDA calendar.
He has also claimed that the news media, specifically the televised news media, does not find it profitable to provide enough information for individuals to be good consumers of news. By 1987, that number decreased to 29 corporations and now it is down to five: Time Warner, Disney, News Corp, Bertelsmann, and Viacom, with GE as a close sixth (Bagdikian, 2004). Bowles’ (2006) ideas about industrial capitalism have also resonated with the news media.
News media critics, like Kathleen Jamieson and Joseph Cappella (2010) have argued that the news media have come to be known as an echo chamber—in which many news outlets are delivering homogenized products. Although different news stations may adhere to a different set of ideological values, MSBC may be more liberal while FOX may be more conservative, individuals are exposed to the same news content on the Big 5 news media networks. For example, each mainstream news channel airs the same snippets of a president’s speech.
The mainstream news media operate as a corporation, and they inherently have the same market goals as any other corporation: profits. Packaging the news entails sensationalism and bias, which hinders the consumer’s ability to distinguish between the quality of the media’s goods—information. The media’s dependence on the market system creates an inherent pro-market bias within the news media.
As a part of capitalism’s emphasis on high-efficiency, sociology and phycology professors, Croteau, Hoynes, and Milan (2011) have argued that the corporate news media owners demanded substantial returns on their investments” (p.59), which created profit pressures. They claimed that these profit pressures have encouraged news content to attract large audiences and to be cost effective. Croteau, Hoynes and Milan (2011) wrote, Newspaper editors, increasingly trained in the world of business instead of news reporting, focus more on marketing and packaging the news” (p. 59). Structurally, the news media is part of the market, making it unlikely for the news media to be antagonistic toward the market.