What's Happening?
McGraw-Hill launched its first issue of BusinessWeek on September 7, 1929, marking a significant milestone in economic journalism. The magazine's inaugural cover featured a large red triangle pointing downwards against a black and white night photograph
of a city intersection, notably without business news on the cover. Inside, articles covered topics such as tariffs, railways, farms, Palestine, and even a technological discovery of the era: the expanding uses of dry ice. Despite its eventual reputation as an authoritative source in business reporting, BusinessWeek faced challenges in predicting major economic shifts. For instance, just seven weeks after its launch, the stock market crash plunged the U.S. and global economies into the Great Depression. The magazine's editorial team, while sensing an impending market readjustment, optimistically stated in July 1930 that there was no economic 'frost in the air' and anticipated a 'long period of Indian summer in the economy before winter comes,' a timing that proved incorrect. McGraw-Hill also proceeded with plans for new offices on 42nd Street in Manhattan, moving into them in late 1931, amidst this period of economic uncertainty.
Why It's Important?
The launch of BusinessWeek by McGraw-Hill in 1929 is important because it established a new voice in U.S. economic journalism, aiming to provide insights into the business world. Its early misjudgment of the impending Great Depression highlights the inherent difficulties in economic forecasting, even for specialized publications. This period also saw BusinessWeek evolve its editorial stance, advocating for aggressive action to stimulate the American economy as the Depression deepened. While other entities like the U.S. Chamber of Commerce urged the federal government to balance its budget, BusinessWeek recognized the economy's demand deficit and argued that only the state could fill this void. The magazine criticized the Federal Reserve's inaction in October 1930 and condemned a consumption tax bill in March 1932 as 'fiscal suicide' that would lead to 'further deflation and contraction.' This demonstrates the publication's role in shaping economic discourse and advocating for specific policy responses during a critical period in U.S. economic history.
What's Next?
While the source primarily focuses on historical events, it notes that BusinessWeek, after approximately eight decades with McGraw-Hill, is now part of the Bloomberg group. This transition suggests a continued evolution of the publication within the broader landscape of business and financial media. The magazine's historical pattern of sometimes misjudging economic turning points, as seen with the dot-com bubble in 2000, indicates the ongoing challenge for business publications to accurately forecast and interpret complex economic trends. For the U.S. business community and economic stakeholders, the continued existence and adaptation of such publications mean a sustained source of analysis and commentary, albeit one that, like all media, is subject to the inherent uncertainties of economic prediction. The future will likely see BusinessWeek, under Bloomberg, continue to adapt its content and delivery methods to remain relevant in a rapidly changing media and economic environment.
Beyond the Headlines
Beyond its role in reporting economic news, BusinessWeek significantly influenced the concept of modern business leadership in the U.S. The magazine played a crucial role in defining the contemporary Chief Executive Officer (CEO) role. As new businesses and technologies emerged after World War II, there was a growing need for professional managers with analytical skills to quickly assume responsibilities in unfamiliar sectors. BusinessWeek's articles on business management became a core feature, recognizing this shift. The archetype of this new manager was Alfred P. Sloan, CEO of General Motors, whose data-driven approach became a highly influential business strategy in the 1950s. Sloan's donation of over $5 million in 1950 to establish a graduate school of business administration at MIT, at a time when formal management education was nascent, underscored this evolving professionalization. BusinessWeek quickly acknowledged the importance of this change, publishing an article in April 1952 titled 'Can You Teach Management?' which stated that the era of the truly professional general manager was not yet here, but not far off. This highlights the magazine's deeper impact on the development of management theory and the professionalization of corporate leadership in America.
