The Economic Reaction to Bad News 

Media may be helping prolong our recession by speculating about the outcome of their news. When we see signs of recovery, the bad news kick in. If we keep on creating an environment full of bad news, the recession will get worst. Media can help this country get out of the recession by presenting the news in a more positive way. It is not about lying or misinforming but about not speculating or overreacting to the news. 

Everything starts with us. The little money that we are receiving is not been spent because according to the news things may get worst. We may deprive ourselves of essential things and hurt the market thinking that, in the future, we may need that money. We hurt the market and it may come back to us when we get a “pink slip”. Our “saving” culture should have been started when things were going good. 

The stock market keeps on speculating based on the “bad” news that surround us day after day. If we give it a try and announce, as an experiment, a company that is hiring and blow the news as we do with the bad ones, that particular market will increase sales on the specific market of the products that are sold by the market of the industry that is hiring. Everything we do generates a chain reaction. Media may be a little more powerful than what we think. We should not wait until the markets hit rock bottom. 

If media was looking at things from a different perspective (without lying) could help our economy. The first thing we see every morning is news of bad economical situations. Our own depression is caused by “somebody else”. We are reacting to our social situation and affecting our own personal economy. The problem is that, socially, we are dependents of each other; therefore we should try to help each other get out of the recession. 

We see these basic concepts been applied when is “usually” too late to change the outcome of an economical reaction. If a big company makes a “bad” announcement everybody runs to sell their stocks trying to save as much as they can before it is “too late”. When others thing that it may affect them, “someone” will come out to announce “the good news”. And everyone loses in the process. We may be able to reverse the process. 

If the country’s economy starts to go down, usually, the president comes out to calm the market with his own analysis of the situation. What he is trying to do is to stop a chain reaction that will be generated by the bad news. If he was to come out and say that our economy is going down and the government can not do something about it, the markets would fall down in a matter of minutes. Bad news would be affecting the economy. Well, I think that some good news at this time could help us start our recovery. 

Let’s pretend that, in the news, we see that the white bread market has been steadily growing due to the economical times because it just became an inexpensive option to complement our meals. You and I may see that as good news since we now know that we will be saving money when we consume white bread. An investor may see it as an opportunity to make money during these difficult times and could decide to “risk” some of his capital in that industry generating a chain reaction and, directly and indirectly, creating jobs.

If media could start promoting the companies that are now growing and creating jobs things may start changing. The influence of the perception of good news also affects our attitude. It is very difficult to understand that bad attitudes are contagious and generate economic reactions and changes on our social behavior because we rarely stop to think about it. 

We need some help to recover from this economic crisis. We could get it through the news. I really think that media had been neglecting the good news which we need ASAP.



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