What started as the worst idea ever to be conceived, has only multiplied as the domino effect takes hold of the country. First it was the banking industry, then the auto industry, newspapers are well on their way, and now talks of a broadcaster/TV industry bailout are making their way across the web. You may be asking: “Why such a political and not so gadget related topic?” Well, dear reader, such topics do have tech based roots and therefore deserve a mention. So how sick is this “fix” becoming?
If the idea of yet another bailout sounds about as good as drinking a vat of poison while driving through a nuclear plant on judgement day then you may want to keep reading as to get more info to write to your local governments with. It seems as if our politicians love spending our money on outdated and dying business models as Democratic congressional reps James Clyburn, Barney Frank, Charles Rangel among many others collectively wrote Treasury Secretatry Timothy Geithner asking, pleasing, maybe even begging him to loosen restrictions on money lending so that more minority owned TV and radio broadcasting stations could starve off the onslaught of creditors and other money seekers that are no doublt knocking down their front door. Those fine examples of educated congressmen go on to say that while those businesses and markets are financially strapped, the are “operationally sound” and just need a little help, a cookie, and possibly a glass of milk to wash it down with.
One piece of information that they neglected to include, quite possibly the major reason why these stations are losing money, is that their bread and butter advertising industry is making more strides towards online advertising which is cheaper, more diverse, and reaches a far greater audience. TV/Radio based advertising revenue continues to shrink while online advertising is experiencing the exact opositte – much shaper increases.
Of course, being politicians and loving to put on a pretty PR face, they’ll talk up the many benefits of keeping these legacy businesses around and come up with some bogus reasoning why the free market shouldn’t dictate the free market (figure that one out). It is all a big cluster through and through. Everyone wants money and there simply isn’t enough for everyone. All the money in the world won’t help if companies don’t slim down and people aren’t spending, plain and simple.
Do you see this next potential (I-know-it’s-really-a-loan) bailout as an afront to the American people, democracy, and free markets everywhere? Or could you care less just as long as at the end of the day you have a roof over your head, a hot meal, a warm bed, and some fuzzy PJ’s with feet in them? Spill your guts below.
Source: Alley Insider, Image Source
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