The Political Economy of Propaganda: Evidence from US Newspapers,

Abstract This study examines whether racial outrage in the media can result from the incentives of elites who seek to divide society for political gain, focusing on the late 19th century Southern United States. At this time, the Democratic Party had strong political incentives to incite racial outrage, and local Democratic elites exercised considerable influence over newspapers, the only mass media at the time. Using high-frequency historical newspaper data and difference-in-differences and triple-difference estimation strategies, we find evidence consistent with Democratic elites orchestrating a racist propaganda campaign to sway white voters. Supporting analyses are consistent with Democrats benefiting from anti-Black propaganda in the subsequent elections.