The difference is, the newspaper paid professional reporters to write the news. They did a fantastic job (in most cases) of making sure they had their facts straight, and local news broke most of the big stories you eventually heard about on national news sources. Even today, a LOT of the national news starts at local news sources, either papers or local channels, but that is getting worse all the time due to the cuts.
Instead, on Twitter, Facebook, Instagram, Reddit, etc. you get a flood of "news", but you have to vet it all yourself to see what is true and what isn't. And many many people don't do that - if they trust the person sharing, they trust the "news". Or if it agrees with their world view, they trust the "news". Sometimes amazing things are covered - live Reddit threads have broken some amazing stories, with details from local residents. Same with Twitter, etc. But for every one of those stories there are 100s that are fake, or actually pushing alternative narratives that are not based in reality for their own ends. And that flood is just too much for the average person to actually separate the fact from the fiction.
Social media does not equal journalism. That isn't "old industry" thinking. That is just a sad fact.