January 17, 2009
Yes, it is true that the worst aspect of the
For 2008, energy prices were down by 21.3 percent, with gas costs down by 43.1 percent. Food costs were unchanged in December, and rose by 5.8 percent for all of last year.
The sizable slowdown in overall inflation gave consumers more spending power. Average weekly earnings, after adjusting for inflation, showed an increase of 2.9 percent last year, a big improvement from 2007 when average weekly earnings fell by 1 percent.
Sounds good, right? But—there’s always a ‘but’—the mainstream media just can’t help editorializing and speculation on the negative.
However, the typical household may not feel those benefits as they watch the value of their homes and stock holdings plunge, and see job layoffs soar.
Again, job losses are a serious concern. No one should argue that. But any positive economic news, even the mood of the average American consumer, is targeted and negated by the Media:
Consumer confidence did rise slightly in January but remained at comparatively depressed levels, with continued expectations of a deep and long recession, a survey showed on Friday.
Anyone in his right mind might simply say, “Confidence is high, even though there’s a rough road ahead,†but not the Media. The continual assault on consumer confidence has been on going since 2007:
Consumer confidence, holding in the face of increasing gas prices and word of weaker job growth, matched its 2007 average this week.
[…]
Other factors have likely had a balancing effect, such as low unemployment and positive wage growth. However, the Bureau of Labor Statistics last week reported a cooling job market, with fewer new workers added to payrolls than economists were expecting -- the fewest since November 2004. And the bureau said wage growth was showing signs of slowing.
[…]
The question is whether other, more positive factors can keep confidence afloat. There is a chance: In one component of the CCI, 65 percent rated their personal finances positively this week, up four points from two weeks ago.
Comparing 2007 and 2009, the reporting all starts to sound the same. The good news overlaid by the bad. Some may say reporting is reporting, rhetoric is rhetoric, but words, as used by the mainstream media, appear to be a cudgel with which to beat down real signs of economic optimism.
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