Fake News vs. Accurate News, Should the Government Intervene?

Following the US 2016 presidential election and the Covid-19 pandemic, it has become clearer that fake news is a pressing issue faced by modern society. The decline of traditional media has led to an under-provision of accurate news. Some argue that the government should intervene in the news industry to fund the provision of accurate news. Accurate news reporting can be treated as a public good and possesses positive externalities, and the decline in local journalism has led to increasing inequality. The government, therefore, can be justified in funding the news industry. However, concerns about freedom of the press and government failures should also be addressed by combining alternative measures such as policies to improve fact-checking abilities, holding social media platforms accountable, and investing in improving the media literacy of the population.