A major reason behind it seems to be due to consumer confidence being low. Did the media cause some (or most) of that? Id like to hear peoples opinions on this, not just what the news is telling me.
Consumer expectations shape the economic reality, and I think that the media’s portrayal of our economy being in free-fall has certainly increased the sense of uncertainty for consumers, and has probably made the recession deeper than it would otherwise have been. Prior to mass communications, the economy was much less interdependent than it is now, and it’s state depended much more on local conditions than the international factors.
Now, layoffs on one coast are immediately known on the other one, and the increased uncertanty has made consumers less willing to spend. While I think that the media did not cause the recession, their relentless reporting of poor economic conditions has reinforced the sense of pessimism these economic events create, and the increased uncertainty about the future has contributed to the economic malaise that we are currently in.
December 14th, 2009 at 3:02 pm
The recession came from fighting two wars simultaneously for reasons unclear and untruthful. That costs a lot of money. War brings stock markets down. Stock markets bring jobs down.
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December 14th, 2009 at 3:15 pm
I don’t think the media was particularly involved in the current recession. Consumer spending was very high in the US, compared to income. Both the private and public sector have been stockpiling debt for years. I don’t see a way around lowering consumption in the US (and a few other countries).
Consumer confidence is low if you’re afraid of losing your job. If your savings (e.g. the value of your house) are worth less, that’s also bad for confidence. For many people, the lack of confidences seems justified and is not related to the media, although the media may have an influence in further lowering confidence or providing some "good news" that increases confidence or at least prevents a downward spiral on consumption fuelled by an exaggerated panic. I think the media is currently rather paying a lot of attention on positive news such as the rebound in the stock market.
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December 14th, 2009 at 3:38 pm
Consumer confidence is low because economic conditions are horrible. Economic conditions are not horrible because consumer confidence is low.
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December 14th, 2009 at 4:01 pm
The media is downplaying how bad the economy really is.
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December 14th, 2009 at 4:42 pm
Consumer expectations shape the economic reality, and I think that the media’s portrayal of our economy being in free-fall has certainly increased the sense of uncertainty for consumers, and has probably made the recession deeper than it would otherwise have been. Prior to mass communications, the economy was much less interdependent than it is now, and it’s state depended much more on local conditions than the international factors.
Now, layoffs on one coast are immediately known on the other one, and the increased uncertanty has made consumers less willing to spend. While I think that the media did not cause the recession, their relentless reporting of poor economic conditions has reinforced the sense of pessimism these economic events create, and the increased uncertainty about the future has contributed to the economic malaise that we are currently in.
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B.A. in economics, MBA in finance
December 14th, 2009 at 5:27 pm
i think they are playing some role in making it negative.
to give two example robert peston said something on bbc news that he though would happen with regards to b&b and it forced santander to buy them out, which some said had he kept Quiet would not have been necessary
i was talking to a friend of mine and he said that there are lots of good things and underlying issues that we don’t hear about.
do to answer your question whilst they are doing their job i think that they are playing a role in this recession
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