Economics 101: It doesn’t matter how liberal you are, eventually you have to do something radically conservative like pay your bills

We have previously noted, in our 18th Century Technology category, the financial travails of newspapers these days. But it’s not just newspapers, and even companies owned and run by liberals are not immune from market forces:

Bloodbath at CNN, HLN: Axing of 550 Jobs ‘Imminent’

Today’s news of a coming bloodbath at CNN and HLN is a reminder that while CNN has been able to use the unrest in Ferguson to race-bait its way to better ratings, everyone knows that’s temporary. Without something that allows the left-wing network to appeal to the lowest common denominator, CNN is almost certain to fall back into the ratings basement until something else comes along for the network to cynically exploit. So here come the layoffs and buyouts.

In the headline, The Wrap describes these layoffs as “imminent‘:

Some 550 buyouts are to be offered at Time Warner’s Turner network this week, including a large number of those at CNN and HLN, which will lead to layoffs if they are not taken voluntarily, according to an individual with knowledge of the network’s plans.

The buyouts will come across the Turner division, with a couple of hundred expected at CNN and HLN, the individual said.

A CNN spokeswoman had no immediate comment. …

HLN has been struggling in the ratings, regularly finishing fourth in total viewers and in primetime across the key cable news demo, viewers 25-54. It did edge out MSNBC in the demo across a total day measurement in 2014′s second quarter.

CNN’s ratings have been doing well during times of big, national breaking news — but the cable news net regularly ranks far behind Fox News and battles with MSNBC probably more than it would prefer.

More at the link.

In a way, it’s karmic justice once again making itself felt: it doesn’t matter how liberal or noble or whatever the good people at CNN are, the laws of economics and business realities still apply, and economics and business are inherently conservative in orientation. And, along those lines, it seems that voting socialists into power doesn’t always mean that they can stay socialists. From Donald Douglas:

Left-Wing Revolt Plunges Hollande Into Crisis

At Telegraph UK:

The French president is forced to order a reshuffle after two dissident cabinet ministers launch an open rebellion against his economic policy.

François Hollande was forced to order his second reshuffle in less than five months today after a revolt within the cabinet threatened to cripple his presidency.

The Left wing of France’s ruling Socialist Party is furious over Mr Hollande’s shift to more centrist economic policies with the introduction of tax and spending cuts aimed at reducing the country’s huge budget deficit.

The outgoing government, headed by the reformist prime minister, Manuel Valls, was appointed in March with the aim of bringing an end to infighting and the cabinet’s apparent lack of direction.

However, it was plunged into crisis over the weekend by Left-wingers led by Arnaud Montebourg, the flamboyant economy minister.

He defied Mr Hollande’s authority by publicly urging him to discard austerity and break with what he described as deficit-cutting measures imposed on the eurozone by “the most extreme orthodoxy of the German Right”.

More

Reality bites, doesn’t it? Monsieur Hollande has introduced economic measures he finds personally distasteful, because he has no real choice: his socialist experiment has led to huge budget deficits, and all of Europe is, to paraphrase Margaret Thatcher, running out of other people’s money.

17 Comments

  1. So at this point CNN and I’m sure almost all if not all their employees were carrying water for Obama through two elections, skipping over his foolish statements (57 states etc.), covering for his constant lies and giving his contempt for America and his not-at-all-transparent administration little notice. They probably didn’t notice he and his entire criminal enterprise from the IRS to Holder are openly hostile to any form of business or free enterprise. Bet they’re noticing now! I hope they’re bought by a Canadian company, funded by Buffett and headquartered in Toronto. Screw’em all they deserve the hell they foisted on the rest of us. I hope this type of financial and personal pain comes to all his supporters.

  2. It isn’t exactly rocket science to understand that for businesses to pay their employees, they have to do something really conservative like make money, but, for some odd reason, so many of the left just don’t seem to understand that.

    I caught a story on Fox & Friends Early this morning, while getting ready for work, that the city of Los Angeles wants to raise the local minimum wage from $9.00 to $13.something. Anyone with any sense at all would have to realize that either businesses which have minimum wage — or near minimum wage — employees will have to raise prices, or make do with fewer employees, or a combination of both, to survive.

    Instead, the left apparently think that the only thing that will change is that the bosses won’t make as much money, but they’ll still stay in business. Well, it’s very likely that some of the bosses won’t make as much money, but whether they’ll be able to stay in business, that’s another matter entirely.

  3. CNN sucks. When their chief reporter is (I eat a lot of) Candy Crowley, a woman who puts the “Zeppelin” in Led Zeppelin, then you know you’ve got trouble! At least FOX News has enough sense to put the “Fox” in news!

  4. Having foxes on Fox News certainly hasn’t hurt, but that doesn’t explain the success of Bill O’Reilly or Sean Hannity!

    However, I’ve noticed that CNN has Christi Paul out there on New Day Saturday and Sunday, rocking the short skirts and fornicate-me heels. They’ve learned!

  5. The “fox’s” on FOX or CNN is classic marketing, which is good. But after you draw your customer in you gotta give him what he wants. And nobody’s buying what CNN is selling.
    CNN like MSNBC seem to have come to believe their job isn’t to report news but to decide which news is reportable so as to shape opinion. I have nothing against opinion pieces but don’t intertwine your editorials with you news and don’t completely ignore important news because it doesn’t fit your narrative.

  6. the ladies at Fox News actually know how to smile.

    That’s because they’re not a bunch of leftists. Have you ever actually seen a leftist smile unless someone was getting screwed over? The only time they’re ever happy is when someone else is being harmed.

  7. The recent purchase of Canada’s Tim Horton food chain by Burger King proves the one law of Taxation and its effect on the economy: If the government wants more of something, (border crossing, EBT sign ups, poverty via welfare and a few dozens of dozens of give aways) they subsidize it. If the government wants less of something (like corporatins to stay in America) you tax it heavily. So now, Burger King is a Canadian company. DUHHHHHHHHHHHHHH

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  9. One thing that would destroy HLN, MSNBC, two that would destroy CNN:

    1) Free-market approach to cable and satellite channels, allow people to select each and every channel in their packages and deselect those they don’t want.

    2)Stop playing CNN in airports, bus stations, etc.

    That’s it.

  10. Mr Hitchcock wrote:

    Free-market approach to cable and satellite channels, allow people to select each and every channel in their packages and deselect those they don’t want.

    Well, in a way, they already are: they are doing so with their remote controls, which is why CNN’s, HLN’s and MSNBC’s ratings are so pathetic. That means they can’t charge as much for advertising, and that goes directly to the bottom line.

  11. 2)Stop playing CNN in airports, bus stations, etc.

    Same for businesses that play CNN. I notice Booger King plays CNN whereas McDonalds plays Fox.

  12. The thing is, Mr Editor, that these non-entities get money from cable companies and satellite companies for their non-products. Each package sold sends money to these non-entities. Further, the “market share” estimations would become more accurate when X region of Y state only has Z number of households that have access to the channel. And advertisers who look for bang for the buck will see a dearth of households seeing their ads.

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