Want to understand the economy? Don't read the press

[xchrom]

http://www.aljazeera.com/indepth/opinion/2012/01/2012111124839271411.html

New York, NY - Financial journalists are supposed to be among the most educated and savvy about the economy. Many have either worked on Wall Street, or have advanced degrees in economics and business.

Over the past few years, their "news hole" has expanded significantly as the financial crisis became a top global news story. As reporting on workers declined, reporting on business surged because it tends to attract corporate and institutional advertising.

And yet is the reporting we are getting on financial issues better than ever? Is it more trustworthy, and better informed?

Unfortunately, some of the same patterns that invariably lead to misunderstandings remain.

Here are three reasons:

1. An over-reliance on official sources skilled at spinning data to bolster politically motivated "consumer confidence", and create impressions, not backed by fact.

2. A tendency to quote and rely on experts and luminaries with questionable track records and personal or ideological agendas.

3. A tendency to look at "progress" through the eyes of people in power or in powerful economic institutions with the assumption that if they do well, wealth/prosperity will trickle down into the lives of ordinary people.

Here are some examples.

Last week, the press dutifully reported the "good news" that US economy had created 200,000 new jobs and that the unemployment rate had dropped. There was practically a celebration on the editorial pages.

Sounded good. Most readers stick with headlines on subjects they find dense or inaccessible and get little more than a quick take. Sometimes, the information is packaged in easy-to-read graphics, especially when the arrows point up.

It can all be misleading.

[marmar]

1. Good piece.....A great deal of reporting on the economy becomes little more......

...... than a dictation service for financial analysts, corporate spokespeople and government officials.

[xchrom]

2. indeed -- we Know things aren't right --

but there's also very little in depth, factual reporting on all of this.

and of course all of this just drives people to a deeper mistrust of the institutions around us.

[Hestia]

3. Case in point - homes were starting to become affordable again and we were thinking about actually

going out and actively seeking a mortgage because sanity was prevailing again and prices had come down. One report came out about how this is a wonderful area to buy, prices shot up $20-30k overnight and are now totally out the sphere of even thinking of buying. Even 1970s modular homes are selling for $199k! All over 1 report from some economic report.

[Joe Shlabotnik]

4. Good read, and good comments

The MSM and business media are integral parts of the smoke and mirror bubble machine. Much of what is reported, is in actuality merely 'repeated', as it is in the media's best interest to perpetuate myths rather than expose the truths. Whether it be for nefarious reasons such Access, or to drive up their own advertising revenues with corporate/government friendly message, the bottom line is that the average person is being misinformed, and under-informed about the underlying reasons for the grinding pain that they feel each day.

[Populist_Prole]

5. This is why too many John Q. Publics think the way they do

It's even more pathetic when they attempt to sound smart or informed because you can tell they're just aping the talking points du-jour.