The way the news media report issues relating to the economy greatly impacts the way people view the economic well being of the country. That, in turn, influences their behavior. If they see the economic situation as strong and sound, they are more likely to spend money on luxury items, take on additional debt, or even consider risking a career change. If their impression of the economy is that it is struggling, or worse, they are less likely to take financial risk and may decide to save more of their money in case the economic bad news hits their household next.
For much of George W. Bush’s eight years in office there was a huge disconnect between what economic indicators showed and what the American public saw. Some in the media report the numbers in a straightforward manner, but more often lately they spin them in accordance with their political biases.
Even when the unemployment numbers were good, many in the country believed, in spite of what they saw in their own lives and those of friends and family, that there must be many others out there struggling to find work. The media spin on even very good jobs reports during that time was frequently negative. When there was not a negative aspect to a specific report to be found, it could always be said calamity was surely just waiting around the corner.
In 2005, Mithridate Ombud called it “yes, but” reporting, citing several examples from the New York Times. All the good numbers (you know, the facts) were in the report, but they were tempered with heavy skepticism and an abundance of “buts” throughout the text.
Often throughout the Bush years, the news story itself would be positive, but a scary headline was attached to it. Recently the reverse has been true. It is amazing how even some of the most dreadful economic news can be spruced up with the help of a happy headline writer.
The blogger Anchoress proposed a rainy day game using the headlines and first sentences of economic reporting. She wrote, “Simply pay attention to headlines and first lines of news stories about the economy (or the war, or anything!). It’s educational! Teach your children how to compare and contrast by studying how first lines can make economic news seem either positive or negative, for fun economic, polling and presidential impact!”
Those in the news media do not always provide an accurate picture of the American economy, but the spin politicians put on that news can be even more skewed. When numbers such as unemployment figures, retail spending, and gross domestic product are released, many politicians spin them to best advance the policies they advocate.
With all the ulterior motives and spin, it is often hard to get a good read on the nation’s true economic situation. So what is the average person who has trouble deciphering all those numbers to do? How will they know when we are truly experiencing recovery?
If they look at their communities, they might not get an accurate picture. Things are pretty bad all over, but in some areas of the country the recession has hit much harder than in others. When recovery does come it will likely be uneven as well, taking place in some states much sooner than others and to different degrees.
So, if you can’t necessarily believe the media, or the politicians, or even your own eyes, what can you believe when it comes to information about the state of the economy?
Actually, you should listen to what the politicians are saying, and read what the media is reporting and pay attention to what is happening in the world around you in your community and beyond. But do so with a critical eye and a healthy dose of skepticism.
When listening to what the politicians have to say, take into account what they have at stake in the debate. Be aware of where their loyalties lie and always independently confirm any information they provide.
When reading, watching or listening to news reports, be sure to continue past the headline and first few sentences. Pay attention to the facts being offered in the report, and try to ignore the editorial commentary.
Observing firsthand what is taking place in your community, and with your family and friends, is in many ways the most important indicator of the state of the economy for you. That is what is happening where you live and work so it most directly affects you. Just be aware that things may be much different in other parts of the country.
Keep those tips in mind the next time you are reading about “green shoots” and whether or not we have dodged a double-dip recession.
I just realized I'll still be typing next week if I keep talking about the great stuff we've gotten, so I'm going to list it!
Posted by: MBT Shoes | Monday, August 01, 2011 at 05:41 AM