re: Is the Decline of Newspapers Bad for the Country?

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No, it's the decline of honest journalism that is bad for the country.

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On the national level that's absolutely true. But that's a slightly different topic.

On the local level the newspapers didn't get destroyed because of a lack of credibility, they are getting destroyed because of a lack of money as the press changes and becomes more nationalized. There is no money in local journalism and it's allowing local governments to go completely unaccountable as no one is paying attention.