Class war and drinking the Kool-Aid at Dow Jones

We all remember the worst job we ever had. Mine was as a re-write person on the lead financial wire service of Dow Jones in the mid-1990s. But it did give me a chance to see the workings of finance capital up close, and learn that my ideas on how it functioned really were true.

Those two unfortunate years at Dow Jones also gave me a better perspective when Rupert Murdoch swooped in a few years later to buy the company, not so much for its wire services rather for the cachet of owning The Wall Street Journal. An episode that nicely served as a humorous reminder of just what is meant by “integrity” by the idle rich — receiving the highest price.

It was difficult not to suppress a smile as the idle rich, absentee majority owners of the Journal, the Bancroft family, publicly wrestled with their bullet-proof “integrity” in the face of barbarian Murdoch. The newspapers published by Murdoch are distinguished by their mad-dog, mouth-frothing ultra-right diatribes. Not to be confused by the editorial pages of the Journal, distinguished by their mad-dog, mouth-frothing ultra-right diatribes.

There is one difference, and that is that the Journal’s mouth-frothing is done on behalf of Corporate America and is not shy about telling corporate readers what is good for them, such as its bizarre years-long campaign to return the dollar to the gold standard. The paper’s many readers who make a fortune by trading world currencies might beg to differ, but no matter. Murdoch’s papers, however, never challenge their readers’ biases and if those readers want several pages daily of celebrity gossip mixed in with the right-wing propaganda, then that is what the people will get.

You don't want to work here. (Photo by Stefan Schulze)

You don’t want to work here. (Photo by Stefan Schulze)

The Bancroft family’s celebrated “integrity,” arrayed against this hideous assault by a vulgarian, ended resoundingly when Murdoch arranged to sweeten the pot. Selling your integrity for maximum dollar — what could be more like Corporate America? And so the Journal provides us with another sound lesson in capitalist economics. The hidden Achilles heel in all this is that Murdoch paid much more for the Journal’s parent company, Dow Jones, than anybody else would, and that is for a simple reason — Dow Jones was a company remarkable for its inept management.

I know this from my personal experiences there. Just how many wire services Dow Jones actually published was not known, as nobody actually knew when I casually attempted to find out at one point, symptomatic of the place. Two spectacular failings during my two years nicely provide illustration. One of these two was the acquisition of a financial data company, Telerate, which was seen as very well run and profitable. Part of the Dow Jones egoism is that its managers are super-geniuses, and so Dow Jones replaced Telerate’s successful management with its own managers, who ran it into the ground so quickly that Dow Jones sold it seven years later for more than $1 billion less than what was paid for it. Many workers lost their jobs as well.

More adventures in management

A concurrent episode was the short-lived Dow Jones television station in New York City. The city government owned a public television station that the then mayor, Rudolph Giuliani, decided to give away at fire-sale prices. Dow Jones won it, intending to turn it into an all-business news television station, never mind that cable television already carried more than one of these. (One of which, CNBC, was blared continually in the wire service’s workplace; the horrible theme music gave me nightmares for a long time afterward although a female anchor’s on-camera tendencies to nearly break down in tears when a company’s profits went down and almost reach orgasm when profits went up did provide comic relief.)

Dow Jones management, however, wasn’t prepared for its new toy, and so upon taking over the television station, at first aired nothing but videotapes of “classic” sports games from 10 and 20 years earlier. Dow Jones hired television personnel from around the country; new hires sold their houses and moved thousands of miles to work in the new venture. Once started, it lasted four months before Dow Jones announced it was selling the station, putting all those new hires, who had so disrupted their lives, into the street. The magic of the market at work!

Episodes like this led to one of the Bancroft heirs, a thoroughly spoiled rich kid, to complain in public that her inheritance, worth tens of millions of dollars, might decline in value because the Dow Jones stock price was stuck in mud despite the 1990s stock-market bubble that was then in progress. This development, in turn, prompted that most unusual of actions at Dow Jones — a member of upper management would deign to talk to the lowly workers! Surely this was a sign of crisis.

One afternoon, we were pulled from our usual duty toiling on the electronic sweatshop to hear a pep talk in the cafeteria from none other than Chairman and Chief Executive Peter Kann. Kann would have needed an injection of personality to qualify as an empty suit, but in his own way is a sad story. Kann, at one time, was a reporter for the Journal famous for covering a war between Pakistan and India, during which he defied an order by his editor to leave the area by falsely saying there was too much static on the line for him to understand what the editor had just told him.

For him they feel sorry?

That Peter Kann was long gone. Dow Jones was distinguished by its remarkable rigidity — only those who fit an extremely narrow mold and are willing to drink the Kool-Aid if so ordered take so much as one step on the career ladder, never mind ascend to the executive ranks. And that’s in addition to the political lock-step required to survive the place. The sweatshop floor workers assembled, Kann preceded to deliver a rambling speech full of business cliches about the glorious future, but lacking any discussion of the company’s turmoil, the very reason for this unusual pep talk, as even the right-wing yuppie zombies, Dow Jones true believers who comprised most of the wire service’s workforce, understood.

None had the courage to ask a question on the topic, as I expected. It was up to me to say something — I was the shop steward for the union, disliked by management, and already trying to escape the place by becoming a freelance editor, so I had nothing to lose. Besides, I knew that most of my co-workers would be quietly counting on me to say something — virtually all conformed to the Dow Jones corporate culture of snapping your heels and running, not walking, to carry out your assignment, never allowing the slightest doubt to enter your innermost thoughts.

When Kann’s assistant asked for questions, I asked Kann what the company’s plan for stability was in light of the recent problems it had been having. I didn’t explicitly detail the serious gaffes Dow Jones had committed, but he and everyone in the room knew to what I was referring. To my genuine amazement, Kann, after a long pause, proceed to give a disjointed answer that touched on none of the issues; he was obviously seriously rattled, unable to speak coherently. After perhaps a minute of this, Kann’s assistant gently interrupted, deftly took the microphone and thanked all of us for attending, ending the meeting.

The odd coda to this was that some of the Dow Jones true believers then felt sorry for Kann, because there was pressure by shareholders to push him out of his posts due to the mismanagement. “Aw, he’ll be out soon, anyway,” one told me, genuinely feeling sorry for the dear leader. The joke was on the workforce, however, as Kann lasted another decade as head of Dow Jones, leaving it to Murdoch to satisfy his ego by overpaying for the company. The idle rich had already prospered because tens of millions of dollars per year had been funneled to them via family-only dividends and now they would cash out, by still doing nothing. Many jobs will be lost to pay for those payoffs.

A wonderful lesson in capitalist economics, and, see, there is nothing to fear from Murdoch when it comes to capitalist ethics. See you on the yacht, darling.

Rogue newspapers or part of a continuum?

You’ve got to hand it to the old pirate, Rupert Murdoch — he’s still at the top of his form. His performance at the “Leveson Inquiry” in London last week was, in its own way, something to behold. Denying he seeks favors for his businesses, denying he has any influence, denying he knows anything that is happening within his company.

And Fox News is “fair and balanced.” There must be much unease within News Corp. these days, considering the number of old hands — some of whom worked there for decades — Murdoch so casually threw overboard. Before The Guardian last summer broke open the still unfolding News Corp. scandals, we were told hacking was the work of a single “rogue reporter.” Then it became the work of a single “rogue newspaper.” Next a “rogue country” perhaps? One can see where this might be headed, so Murdoch, in his two days of testimony last week, sought to head off the possibility that the, uh, whole company, might be “rogue” and so fell back on blaming his executives for keeping he and son James in the dark.

This week’s declaration by a British Parliament committee that Murdoch is “not fit” to run a major company does catch one’s attention. I don’t believe that extraordinary declaration can be separated from Murdoch’s appearance before that committee last year. The most common commentary then reduced his performance to personalized notions such as “doddering grandpa” in light of his long pauses and lack of answers offered.

What I saw in last week’s testimony was a boss used to being unaccountable to anyone — his crisp “no’s” and clipped phrases to the questions reflected someone used to giving orders and being in charge. His own manner betrays his role as the person in charge, whether that is tightly managing his properties or creating and encouraging a distinct corporate culture.

I should note that all Murdochs and the company’s representatives have consistently denied condoning e-mail hacking, phone hacking, paying off police and other accusations. We will have to wait for the legal systems and the parliamentary investigations to run their course to gain better understanding. But we can examine Murdoch’s newspapers.

Buy first, demand legality later

Take the New York Post. The Post wouldn’t exist it weren’t for special favors granted Murdoch. The United States used to have laws prohibiting “cross ownership” of media — you could own a television station and two radio stations in the same city, but no more, and no newspapers if you owned a TV station. When Murdoch decided to branch out into television in the U.S., he bought a television station in New York, despite already owning the Post, and had similar conflicts in other cities. Solution? He sought and was granted a waiver from the law, and eventually the law was rescinded.

News Corp. shareholders aren’t necessarily pleased with the arrangement as the New York Post loses money by the tens of millions of dollars annually. But it exists as a platform for Murdoch’s extreme Right viewpoints and as a bully pulpit. A good example of the latter could be made out of the Post’s attitude toward Hillary Clinton.

The paper for years consistently attacked Clinton in every manner possible, going out of its way to publish the most unflattering photos of her they could find, and sometimes doctoring them to make her look worse. (Fox News is often accused of doing that as well.) But in 2000, Clinton was a shoo-in to win a seat from New York in the U.S. Senate, and Murdoch thought it might be good to get on the good side of a powerful senator. Suddenly, Clinton was a hero, routinely lauded in the Post while her Republican opponent was mercilessly attacked. As soon as Clinton became a part of the Obama administration, she immediately reverted to her pre-Senate status.

Not altogether different from Murdoch’s British tabloids suddenly deciding that Labour was not the devil on earth, and backing Tony Blair when it was obvious he would become prime minister in a landslide. Not that any of these papers’ far Right rantings slackened for a moment. Business is business, no matter how well Murdoch can keep a straight face.

How much influence does Murdoch truly wield? Over the political process, evidently plenty, considering how British politicians all feared his considerable wrath, and how cravenly Republicans in the U.S. seek the favors of Fox News. Media outlets that are wielded as weapons of destruction with no regard for reality are coercive to democracy.

Influence or reinforcement?

But do such outlets truly change minds and shape public opinion? Here I have my doubts. When the “news” that is presented is so obvious biased and so obviously carries a political agenda, I don’t see that many minds will be changed; at most a minuscule number. The highest audience total I can recall hearing for any Fox News broadcast is perhaps three million — that sounds like a lot, but nonetheless represents only one percent of the U.S. population. An outlet such as that provides reinforcement for zealots unaffected by reality. That is poisonous to rational discourse, but is most unlikely to convert anybody not already predisposed to extremist rantings and bizarre conspiracy theories.

Sometimes it is suggested that the rantings of Murdoch properties makes comparatively less extreme Right-wing bias more presentable and thus making it sound reasonable. But I don’t think that is the case, either; such bias on its own is not necessarily persuasive. Propaganda is ineffective if it is recognized as propaganda; getting significant numbers of a society to support policies not in their interests has to be accomplished in diffuse and subtle ways.

What I believe moves public opinion is repetition, and not repetition in a handful of obviously biased publications or networks, but rather repetition of viewpoints, reporting angles and underlying themes and assumptions, across the entire corporate media. There are a vast array of institutions, including corporations, “think tanks,” schools and armed forces, to suffice a society with the viewpoints of the dominant, which in a capitalist society are its industrialists and financiers.

That there is sometimes fierce competition among media outlets not only doesn’t militate against uniform assumptions and story lines, it actually reinforces those tendencies. Corporate-inspired ideologies pervade capitalist societies, and corporate ownership of the mass media ensures that decision-making positions are filled with those who hold to some variant of prevailing ideologies or are inclined to “play it safe” by cautiously remaining within “acceptable” boundaries. The mass media will then simply reflect these dominant ideologies, and continual repetition through multiple outlets reinforces the ideologies, making them more pervasive until (and if) a significant countervailing pressure arises.

The very competitive nature of mass media ownership helps dominant ideologies prevail — if so many different outlets report the same news item in a nearly identical way, that “spin” can easily gain wide acceptance. Or if stories are reported differently by competing media outlets, but with the same dominant set of presumptions underlying them, those dominant presumptions, products of ideologies widely propagated by elite institutions, similarly serve as ideological reinforcement.

It’s what the don’t say as well as what they do say

The persistence with which stories are reported is another reinforcement — stories that serve, or can be manipulated, to uphold dominant ideologies can be covered for long periods of time with small developments creating opportunities to create fresh reports at the same time that stories that are ideologically inconvenient are reported briefly, often without context, then quickly dropped.

Ideas that directly challenge corporate orthodoxy can be excluded from public debate at the same time that a debate among two or more “acceptable” ideas rages. To provide an example, at the end of the 1990s a strong debate played out in the mass media outlets of the United States concerning the Vietnam War. This debate had all the appearances of a serious dissection of a bloody, deeply divisive blot on U.S. history. But although the debate was heated and lively, it was only between two “acceptable” viewpoints — an honorable effort that tragically failed or a well-intentioned but flawed effort that should not have been undertaken if the U.S. was not going to be “serious” about fighting.

Left out were the widely held views that the war should never have been fought because it was a war to extend U.S. hegemony or that the U.S. simply had no business fighting in someone else’s civil war. Further, the first “acceptable” viewpoint implied, and the second explicitly stated, that the U.S. didn’t really fight hard to win the war, ignoring the actual intensive level of the U.S. war effort in which North Vietnam’s urban and rural infrastructures were destroyed and three million Vietnamese were killed. (And lest that media debate be seen as a backlash from the Right, it was the liberal New York Times that led it.) Thus there was all the appearance of a free and open media at the same time that the media obscured.

Not covering certain news can be as important as covering news. The New York Times, to use it again as an example, regularly gives heavy coverage, often on the front page, of demonstrations in Moscow, yet published only a tiny article buried far inside the paper on the May Day demonstrations, some of which occurred only two blocks from its office. That is simply a different, more sophisticated method of marginalizing a mass movement than the crude, politically motivated attacks in the New York Post.

In countries in which the media is controlled by the government, it is easy for people to disregard what they read or hear because it is all coming from the same source, even when there is room for different opinions. A system in which the mass media is believed to be independent is far more effective at suffusing a society with an ideology — such a system is not the result of some sort of conspiracy or a conscious plan, it is simply a natural outgrowth of corporate institutions growing so powerful at the expense of all other institutions.

We laugh at Murdoch properties declaring themselves to be “fair and balanced,” but as much as that laughter is deserved they are less an anomaly than we often think.