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Brooks Wilson's Economics Blog: More Bailouts?

Wednesday, May 20, 2009

More Bailouts?

The next beneficiary of tax dollars may be minority owned broadcasters (Silla Brush, "Democrats seek financial rescue of minority-owned broadcasters," The Hill, May 20, 2009)
High-ranking House [members] are urging the Treasury Department to prop up minority-owned broadcasters suffering from a lack of capital and lost advertising revenue amid the economic slump.

House Majority Whip James Clyburn (S.C.) is leading an effort to convince Treasury Secretary Timothy Geithner to take “decisive action” by extending credit to this sector of the broadcasting industry.

Clyburn and other senior members, including House Financial Services Committee Chairman Barney Frank (Mass.) and Ways and Means Committee Chairman Charles Rangel (N.Y.), argue that minority-owned broadcasters are sound businesses, but that the recession could undermine the government’s efforts to diversify the airwaves.
I have edited out of the quote references to party affiliation.

1 comment:

  1. The Democrats must feel threatened by the fact that commentators from the right are doing well in their broadcasts and do not require bailout money to keep their programs afloat. I do not understand why the government feels it is in their best interests to throw money at the minority owned broadcasters unless they are afraid of the right-wing broadcasters. I do not see the Rush Limbaughs, Sean Hannitys, or Bill O'Reillys asking for funds. I guess they do not have financial problems because they have listeners; apparently something the minority broadcasters do not have.