The last time I checked, the free market system was designed to ensure healthy competition, regardless of the industry.  The good companies survive and thrive, while the not so good ones go by the wayside.  It is how capitalism has been for time immemorial.  Yet there is one industry that just doesn’t get it as they opt to go the route of GM, Chrysler and several financial institutions.  What is that industry, you’re wondering?  Coincidentally or not, it is the broadcasting industry; more specifically, the minority broadcasting industry.

What this group has done is asked Treasury Secretary Timothy Geithner for financial assistance – in other words, a bailout, of sorts.  According to the letter drafted by the group in question,

“Minority-owned broadcasters are close to becoming an extinct species. Even in better economic times, minority broadcasters have historically had difficulties accessing the capital markets. Unlike the auto business, broadcasting has been healthy for many years.”

Not surprisingly, this letter was a supplement to a proposal sent in May to Geithner by a group of influential members of the House – including Rep. James Clyburn (D-SC), Barney Frank (D-MA), Charles Rangel (D-NY) and Edolphus Towns (D-NY).

At a hearing last week, the head of the National Association of Black Owned Broadcasters James Winston told lawmakers that advertisers have severely cut investments (in other words reduced their ad budgets) in minority audiences at the same time that minority broadcasters are having a hard time negotiating loan terms with banks.  

Regardless of the percentage of broadcast entities owned by minorities (7.7% of radio and 3.2% of TV), they are sufering what a lot of other industries are sufffering – a drop in revenue due to a sluggish economy.  they should under no circumstances be granted special privileges just because they are having a low period in keeping revenues up.  They are no better than GM, Chrysler or Wall Street; as a matter of fact, they should do like any good business would do in these difficult times – make necessary cuts that will ensure their long-term survival.

And I hope like hell that this measure put out there by this group and any correspondence sent to the House does not go any further than it already has.  Giving preferential treatment to thiws group would set a bad precedence and would basically allow other industries to have their hand out.