Phone-hacking: the US reaction

How the papers in America have reacted to the scandal engulfing Rupert Murdoch's News International.

New York Times

This newspaper carried out a lengthy investigation into phone-hacking at the News of the World in September 2010. Today, Don Van Natta Jr and Ravi Somaiya allege that police officers had their phones hacked. These claims are particularly interesting on the day that police officers face a committee of MPs:

Shortly after Scotland Yard began its initial criminal inquiry of phone hacking by The News of the World in 2006, five senior police investigators discovered that their own cellphone messages had been targeted by the tabloid and had most likely been listened to.

The disclosure, based on interviews with current and former officials, raises the question of whether senior investigators feared that if they aggressively investigated, the News of the World would punish them with splashy articles about their private lives. Some of their secrets, tabloid-ready, eventually emerged in other news outlets.

Washington Post

Erik Wemple derides claims that the scandal will cause Murdoch's empire to crumble. Discussing News Corporation's annual report, he says:

One lesson from the report: Britain cannot threaten News Corp. It can harrumph; it can preach; it can launch "inquiries"; but it is too much of a little rancho to puncture News Corp...

As Murdoch himself boasts, 2010 was a good year for News Corp. Among the few dark corners of the document is this: "For the fiscal year ended June 30, 2010, the U.K. newspapers' revenues decreased 2% as compared to fiscal 2009, primarily due to lower circulation revenues..."

So here's a scenario: The British public outcry about News of the World, the Sun and the Times forces the company to bail on those properties all together. Good! News Corp. dumps money-losing/marginally profitable newspapers. At the same time, it retains its state-of-the-art British presses, printing the titles of any outfit that wants to distribute newsprint.

Boston Globe

Cassandra Vinograd speculates about the possible fall out of these UK-based allegations on Murdoch's US operations:

Legal analysts said yesterday it is possible Murdoch's US companies might face legal actions because of the shady practices at the News of the World. In the United States, Murdoch owns Fox News, The Wall Street Journal, and the New York Post, among other holdings.

They said Murdoch's News Corp. might be liable to criminal prosecution under the 1977 Corrupt Foreign Practices Act, a broad act designed to prosecute executives who bribe foreign officials in exchange for large contracts.

Los Angeles Times

Joe Flint wonders whether the same practices took place in the US:

So far, the fallout from the News of the World debacle has been mostly limited to Britain. However, as the coverage continues to intensify around the globe, it is giving new ammunition to critics of Murdoch and News Corp. in the United States.

"It is becoming increasingly clear this scandal was not perpetrated by a few rogue reporters, but was systematically orchestrated at the highest levels of News Corp.," said Melanie Sloan, executive director of the progressive advocacy group Citizens for Responsibility and Ethics in Washington, which has called for a congressional investigation of News Corp. "If Mr. Murdoch's employees can be so brazen as to target the British prime minister, then it is not unreasonable to believe they also might hack into the voice mails of American politicians and citizens."

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.