Can Journalists live without Economics Knowledge?

Journalism ethics Professor Ed Wasserman asks "Can journalism live without ads" and tries to convice us taxpayer subsidies are the way to go. The professor should ask instead "Can journalism live without writing compelling copy?". Wasserman writes:

In the United States the union dates from the advent of the penny press in the 1830s, when newspaper owners realized that by slashing what they charged readers they could send their circulations soaring and get rich off advertising sales. News found a durable source of funding, and manufacturers hitched a ride into the homes of the burgeoning masses of American consumers.
That era is now ending, not because the public no longer needs news or because people mistrust news any more than they always have -- but because new technologies are churning out better ways to reach customers who are shopping for cars, jobs or homes.

Seems Wasserman mistakes the symptom for the disease. Advertisers go where the people are. If the press can't draw an audience when the content is free what makes Wasserman think they'll want to pay for it. What's next, subsidies for buggy whip manufacturers?
Wouldn't it be ethical for a Journalism Ethics professor to visit his economics department for a few pointers?

H/T Surber

Originally posted in UNCoRRELATED Feb 20, 2008