How Does the Media Influence the Economy?
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Does the media have any influence on the economy? The media has influence, good or bad, on the economy. I am not stating that it is the only thing driving the forces of the economy, but if you think about all of the bad news that has been out about how little people are spending, layoffs, a downed economy, and other variables; it does have some influence on what people do.
When the news coverage talks about how bad an economy is doing, it can help to drive fear into the lives of people and force people to spend less in an economy. That fear can also trigger businesses to slow down on spending, which can also have an effect on other businesses. Have you ever watched the news and heard stories about various crimes that may have happened and felt like crime is rising in your area? You see, businesses rely on other businesses to make money as well. Doctors use other doctors to get referrals and businesses do the same with other businesses. Here is one example. A slow economy means that fewer homes are built due to slower sales. This would also mean less lumber, flooring, tile, paint, sinks, bath tubs, dry wall, light sockets…and the list goes on for the supplies being used to make homes. And the products are made by more than one manufacturer. This also would mean less sales people and workers would be needed for all of these industries.
You should ask yourself how do you feel about things after hearing about it on the news? Do you think good or bad depending on how the topic is covered? And does it affect or influence your decisions about buying a particular product? Automobile recalls can help to decrease the confidence of consumers to buy a particular automobile. Even though the recall could be on one model, people may stay away from the brand if it is publicized repeatedly in the media. Why? People may be conditioned to think that the product, or products, that the manufacturer makes are unsafe.
The good news is that in this economy, all businesses are not suffering. The news that most people hear is only about companies that are laying off workers or companies that are completely going out of business. But why do we not hear about all of the other companies that are doing well, increasing margins, increasing profits, and expanding in this economy? It is probably because bad news sells faster than good news. People are sometimes more interested in bad or tragic news verses being more interested in good and prosperous news. If you think about any changes that you have made in your life during the recession and how you are spending more or less money. This is also a contributing factor that a lot of people have been doing as well.
You can look at discount stores and know that they are drawing in more people than normal during the recession. Why? The reason is that people are looking to save more and keep more money in their pocket. When this happens, people tend to go to other resources that are available to get some of the same things that they are used to getting. You can also look at the stock markets. They tend to fluctuate when instant media coverage of financial cuts for the government of businesses are announced. This happens in real-time since the information is available everywhere online, television, cell phones, and radio. Have you been affected by the news that you hear or watch? The media can be a power influence on us all. I am not saying that it is a bad thing, but it does have some influence on what we do and how we think.
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Source by Charles R. Davis, Jr.
