When Local Newspapers Close, Government Runs Unchecked, Costs Increase

Presented by Office of Public Affairs and Communications

It’s no secret the U.S. newspaper industry is in decline. Nationwide, circulation is down by some 40 percent in the last two decades, and this year alone, multiple prominent newsrooms, including those at the Denver Post and Sacramento Bee, have been further gutted by layoffs.

But new research from the University of Notre Dame shows the loss of city newspapers affects more than those nostalgic for print — it also leads to poorly run government and higher costs.

“Financing Dies in Darkness? The Impact of Newspaper Closures on Public Finance,” a working paper by Pengjie (Paul) Gao, Viola D. Hank Associate Professor of Finance in Notre Dame’s Mendoza College of Business, finds local newspapers hold their governments accountable in numerous ways.