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America’s newspapers are vanishing, with Illinois losing more than most

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When a newspaper closes or stops providing local content, it’s bad news for the local community, according to an updated report.

Since 2004, hundreds of local newspapers have closed up shop. The author of a report on this trend said areas without a local paper suffer in a variety of ways.

A study by the Center for Innovation and Sustainability in Media at the University of North Carolina says newspapers have shuttered at a high rate since 2004, many of which happened shortly after the recession in 2008.

“In total, the United States has lost almost 1,800 papers since 2004, including more than 60 dailies and 1,700 weeklies,” the report found. “Roughly half of the remaining 7,112 papers in the country – 1,283 dailies and 5,829 weeklies – are located in small and rural communities. The vast majority – around 5,500 – have circulations under 15,000.”

Illinois lost 157 weekly papers since 2004, most located in suburban Chicago as many merged with larger daily publications like the Chicago Tribune. This is among the highest number of closings in the country.

“Illinois has lost a tremendous number of newspapers,” said professor Penelope Muse-Abernathy, Knight Chair in Journalism and Digital Media Economics at the University of North Carolina and author of the study. “Newspapers have been the prime, if not sole, source of grassroots coverage of events that affect the quality of life for people in a community.”

The study was updated recently from an initial publication in 2016.

Behind a lack of revenue to support the local publications are decades of declining readership. According to the Pew Research Center, U.S. daily newspaper readership fell by 11 percent in 2017.

Muse-Abernathy said local newspapers have three main benefits to the area they serve: Coverage and oversight of local government; encouragement of regional economic growth and development; and social cohesion.

Often, smaller newspapers will merge with a larger one nearby and then reduce coverage of the area to cut costs, something the report dubs “ghost papers.” Ghost papers offer little to no local content.

“What you have is a paper that was a standalone newspaper in 2004 that has been gradually merged with a parent, usually a large metro daily,” she said. “They first become zoned editions and then tend to morph into an online-only presence with greatly-diminished resources.”

Studies have shown cities without local investigative journalists are more likely to raise taxes and become more inefficient.

The “news deserts” can be found in urban, rural and suburban areas across the nation, but most have one common trait: Poverty.

The report found that locations that had no local newspaper presence had a poverty rate of 18 percent, higher than the 13 percent average nationwide. Residents were also typically older and less educated.

The reason, according to Stanford University economist James Hamilton, is that residents of low-income areas tend to be overlooked by advertisers because they’re less likely to buy subscriptions and have less access to digital media offerings.

Article by Cole Lauterbach with Illinois News Network. For more INN News visit ILnews.org

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Illinois News Network, publisher of ILNews.org, is a nonpartisan, nonprofit media company dedicated to the principles of transparency, accountability, and fiscal responsibility in the state of Illinois. INN is Illinois’ pioneering non-profit news brand, offering content from the statehouse and beyond to Illinoisans through their local media of choice and from their digital hub at ILNews.org. Springfield Daily was granted republishing permission by INN.

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Illinois Secretary of State warns about marijuana investment scams

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Pot is a growing business in Illinois and other states.

And that means marijuana investment scams are becoming a growing problem.

Illinois Secretary of State Jesse White issued a warning about investment scams last week. Canada became the second country to legalize recreational marijuana use. Sales there started last week. In the U.S., nine states and Washington D.C. allow for recreational use of marijuana while many other states allow for medical use. The drug remains illegal under federal law.

“Whenever something is in the news, people who are on the wrong side of the ledger, want to line their pockets,” White said. “They come up with the various schemes to take your hard earned money. And we want to do all that we can to keep these people out of your pocket, so to speak.”

White said people need to do their research before investing in anything, especially the new marketplace of marijuana.

“The company must be registered with the state of Illinois,” White said. “If you have any questions about it, you can go to the website AvoidTheScam.net.”

White said the North American Securities Administrators Association has information on scammers and other flagged-businesses.

If you have been scammed, White said the securities department inside the Secretary of State’s office needs to know.

Article by Benjamin Yount, Illinois News Network. For more INN News visit ILnews.org 

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Illinois manufacturers, farmers eager for new trilateral trade deal

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Illinois’ manufacturing and farming communities are excited about the new trilateral trade agreement President Donald Trump announced between the U.S, Mexico and Canada. But the state’s leading manufacturers’ group says Illinois must address its poor business climate and farmers say the U.S. must continue making deals with other countries in the face of a trade war with China.

After months of trade uncertainty, Trump said Canada is now on board with Mexico to forge a new trade deal with the United States. He decried the North American Free Trade Agreement signed by the U.S. in the 1990s as a horrible deal and campaigned to get rid of it. On Monday, he said he’s fulfilled that promise.

Called the United States, Mexico, Canada Agreement (USMCA), Trump said it will make North America a manufacturing powerhouse.

“That means more auto parts and more automobiles will be manufactured in the United States,” Trump said. “We will be manufacturing many more cars.”

Illinois Manufacturers’ Association’s Mark Denzler said that’s great news for the state’s automotive manufacturers that employ thousands of workers. It’s also good news for chemical, pharmaceutical and food manufacturers, he said.

But Denzler warned Illinois could miss the boat if it doesn’t address the state’s negative attributes.

“Workers’ compensation, higher taxes, we’re looking at a graduated income tax for example, higher minimum wage, all of these things add up and make it more difficult to do business in the state of Illinois,” Denzler said.

Illinois has the highest workers’ compensation costs in the Midwest, and seventh highest in the nation. The state’s property taxes are also among the highest in the country.

For farmers, Trump said the USMCA opens up the North American marketplace to make things more fair and reciprocal.

“The deal includes a substantial increase in our farmer’s opportunities to explore American wheat, poultry, eggs and diary, including milk, butter, cheese, yogurt and ice cream,” Trump said.

Trump had long blasted Canada for having a nearly 300 percent tariff on U.S. dairy products.

While Illinois dairy products may take a backseat to dairy products from states bordering Canada, Illinois Farm Bureau President Richard Guebert said the trade deal is still great news. He said trade negotiations must now continue elsewhere.

“Let’s work on the other countries as well, the [European Union], Japan and build those markets knowing that China is going to be a little ways down the road,” Guebert said.

In an effort to curb what he called unfair trade practices and intellectual property theft, Trump has imposed tariffs on all kinds of Chinese products. China has responded in kind with no end in sight.

The USMCA trade pact must still be ratified by all three countries before it replaces the NAFTA agreement.

Article by Greg Bishop, Illinois News Network. For more INN News visit ILnews.org 

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Court upholds Illinois nuclear power subsidy law

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A federal appellate court ruling upheld Illinois’ law directing hundreds of millions of dollars in subsidies to nuclear plants and other green energy incentives.

The ruling from the Seventh Circuit Court of Appeals says that Illinois’ Future Energy Jobs Act, a 2016 law providing Zero Emissions Credits to Exelon, the owner of several nuclear plants in the state, doesn’t unfairly manipulate the multi-state energy market that establishes rates.

The challenge was brought by the Electric Power Supply Association, a trade group for power plant owners that includes Dynegy, which has since been acquired by Vistra Energy. Vistra owns coal-fired plants in Illinois. Vistra wasn’t immediately available to respond to the ruling or say whether it will appeal the decision.

In Vistra’s lawsuit, the company claimed the subsidies allowed Exelon to submit unfairly low rates in the wholesale auction.

The panel ruled that “the Commerce Clause does not cut the states off from legislating on all subjects relating to the health, life, and safety of their citizens…”

Exelon released a statement Friday saying the company was “pleased to see that the Seventh Circuit Court affirmed dismissal of the ZEC complaint, thus supporting the continued operation of Illinois’ ZEC program and the clean, resilient and affordable electricity nuclear power provides.”

State Rep. Sue Rezin, R-Morris, who has two nuclear plants in her district, said it was good for clean and renewable energy.

“Many states are trying to figure out what to do to keep the nuclear plants online,” she said. “This opinion that just came out sounds like a step in the right direction.”

Both sides had said Illinois jobs were on the line as they looked to influence lawmakers.

Exelon warned in 2016 that it would likely have to close two Illinois plants, one near Clinton and another near the Quad Cities, and cut 1,500 jobs if the subsidies weren’t signed into law.

Dynegy said its Illinois-based plants face an uncertain future if the courts upheld the FEJA. This would mean 1,000 jobs in southern Illinois, an area facing a dearth of higher-paying jobs.

The Future Energy Jobs Act will charge utility customers an average of $2 per month over the next decade, sending $236 million to Exelon annually. In turn for the credits, ComEd, Exelon’s energy retailer, would invest in green jobs training and provide discounts to needy ratepayers.

Article by Cole Lauterbach with Illinois News Network. For more INN News visit ILnews.org

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