Liberal Thinking At Work

NYT Economics @ Work:

The New York Times suffers a massive drop in its circulation, advertising, revenue and profits. Solution? Raise the price of the newspaper.

The June performance followed an 11.9 per cent decline in May advertising revenues, and suggested that an already deep erosion in newspaper advertising could be accelerating. Ms Robinson said the company would respond by raising newsstand prices for the New York Times from $1.25 to $1.50 per copy beginning in August, marking the paper’s second increase in a year.

That announcement came as the company reported that second-quarter profits fell 82 per cent to $21m, or 15 cents per share, compared with the same period a year ago, when it benefited from a $94m gain from the sale of television stations.

'What? Revenue is down? Just raise taxes. Everyone will continue to behave just as before, so the only effect will be more $$$ for us!'

One wonders if Mr. Krugman was consulted.