Recession caused by Media Coverage?

This from Bureau of Labor Statistics:

“Personal income increased $42.4 billion, or 0.3 percent, and disposable personal income (DPI) increased $45.1 billion, or 0.4 percent, in October, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $102.8 billion, or 1.0 percent. “

So how come personal income increased while consumer spending decreased? My answer the media is telling people that it is bad out there.  As you can see in the chart below people search recession before it even happens. We still aren’t officially in one.


This was written in July on Newsbusters:

“On Sunday’s “Good Morning America,” after 14 “Recession Rescue” segments or teases in less than a month, weekend co-host Kate Snow asked an economic psychologist if “part of [the negative financial outlook of Americans is] our fault, the media’s fault, for constantly talking about how bad things are?” Snow and psychologist Kit Yarrow were discussing how much of the nation’s current financial state is emotional, in light of comments last week by John McCain advisor Phil Gramm that when it comes to the economy, “we’ve sort of become a nation of whiners.”

Nation of whiners I think so…


Published in: on November 28, 2008 at 12:15 am  Leave a Comment  
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