Apr 30 2008
Do We Want A Recession?
Why do the media, economists, and various politicians seem so convinced that our economy is sinking into the depths of a 1929 style Great Depression? Of course the economy isn’t booming, but you’d think we were running out of food tomorrow. A slew of economists expected the GDP report from the first quarter of the year to be in the negative, and much to their chagrin it was not. USAToday.com reported with the headline, “Weak 0.6% Economic Growth In Q1 Is Better Than Forecast.” They can’t even temporarily put aside their disgust for the current administration and write a positive headline for once. I can just see them sitting around figuring out how to get the word “weak” in the headline and downplay any growth.
Granted 0.6% is not a huge increase, but it’s also not the massive recession that 2/3 of the 52 surveyed economists predicted. (Survey taken by USA Today) Of course the housing market is still in disarray, and consumer spending only rose roughly 1%, but there are positives. For example, exports grew 5.5%. The point here is that the bias media coverage does affect people’s outlook. It is true that the more devastating it sounds, the better the ratings. In fairness, this quick online article was actually quite moderate and reasonable. However, it’s still an example of how, with a republican in office, it’s like pulling teeth for major media outlets to report positively, or at least honestly.
As Larry Elder, radio talk show host based in Los Angeles, exclaimed today: The economic news is severely slanted based on the party of the President in office at the time. He cited the 1992 economic study that documented how 80-90% of media coverage of the economy during George Herbert Walker Bush’s presidency was negative. Then the election takes place, and by November of that year, before Bill Clinton had even lit up one of his cigars in the oval office, 80-90% of economic news was suddenly positive. The answer? Sort it out for yourself; don’t just take Katie Couric’s word for it (or any other major media talker). Also, read posts like this and respond. Healthy discussion also helps us make up our minds and search out the truth.
Visit: www.larryelder.com
USA Today cited: http://www.usatoday.com/money/economy/2008-04-30-gdp-positive_N.htm
