Vox Media Criticizes Government Subsidies — But Took Them
‘Media on a government dole’ raises questions about independence and more
Vox Media, the new media company that owns progressive news outlets Vox and Polygon, has accepted taxpayer-funded business subsidies from the state of New York.
The subsidies were authorized under something known as the Excelsior Jobs Program. Payments to a firm can extend for up to 10 years, and companies must meet specified job and investment thresholds. Once a company meets the threshold, it can claim refundable tax credits equal to 6.85 percent of the wages paid for each new job created.
To qualify, a company must be deemed by state economic development officials to be a strategic business that is located in or plans to locate to New York state. According to a quarterly report from the program, Vox was offered $120,000 in refundable tax credits, which generally amount to cash handouts, for 80 net new jobs in the 2016 tax year.
That Vox accepted government largesse is ironic given that the left-leaning outlet has a history of challenging and questioning business subsidies elsewhere. Last year, Vox and its subsidiary news site The Verge questioned subsidies approved by the state of Wisconsin for Foxconn, a Taiwan-based company. Another Verge story from February 2019 was titled, “Google is reportedly hiding behind shell companies to scoop up tax breaks and land.” A subhead read: “Stealthier than Amazon, but similarly disquieting.”
Whether Vox continues to receive its own subsidies may be in doubt following substantial job cuts it made early in 2018. Around 50 employees, or 5 percent of the company’s workforce, received termination notices. At the time, Vox CEO Jim Bankoff blamed the pink slips on “industry changes over the past few months,” according to Variety.
Vox’s New York subsidies have raised questions about whether government should offer financial support to media operations and whether those that accept the money can maintain their independence.
“Putting the media on a government dole threatens both the integrity and freedom of the press,” writes Cato Institute senior fellow Doug Bandow in an email. “In general, such subsidies are bad economics. In this case, the undermine our democratic system.”
Other voices have noted that direct and indirect government support for media is nothing new. This history was described in a 2010 study from the University of Southern California’s Annenberg School for Communication and Journalism. A report on the study from a Nieman Foundation for Journalism at Harvard listed some of the various types of government support, which include “tax breaks, postal subsidies and public notice requirements,” valued at billions of dollars.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Get Rid of the Teacher Licensing Exam
Let individual districts and principals decide whether certification is necessary
If you want to teach at a public school in Michigan, including at a charter school, you’ll end up taking a lot of tests. Most of these will take place while you’re getting a college degree, but even when that’s done, the state mandates a series of other exams to get and stay licensed.
Michigan should, however, lessen obstacles for people wanting to be teachers by eliminating the test for teacher certification.
Pass rates for teacher licensing exams nationwide are relatively low. According to a new report from the National Council on Teacher Quality, “an alarming number of candidates fail their licensing tests, far surpassing the failure rate for other professions’ entry tests, bar exams and boards.” This obstacle is especially significant for minority teachers trying to get in the classroom.
The evidence that stricter licensing laws lead to higher teacher quality is mixed. But it should be noted that more stringent regulations only came into place in the United States in the 1980s, with exams coming in the 1990s. It’s doubtful that we’ve seen a rise in teacher quality since Michigan began instituting these extra regulations a few decades ago.
Should teachers be required to take these tests after leaving college? There’s an easy answer, and it can come from schools themselves. If individual districts and principals believe the Michigan Test for Teacher Certification is worthwhile, they can require applicants to take it. Let those with the closest connection at the local level decide.
At the state level, Michigan has been slowly knocking back some of the regulatory obstacles to teachers. In 2018, lawmakers eliminated the requirement that educators take the SAT. They also allowed skilled trades workers to more easily teach career and technical classes. The spirit of these reforms should be continued by removing more obstacles from the paths of current and future educators.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
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