Media…The Source of the Problem.
The article, “Hopes of Quick Rebound in China Start to Fade,” by Andrew Batson in the February 26, 2009 edition of the Wall Street Journal, discusses China’s place in the current global recession. Because China’s stock market has had the best performance this year, hopes were high for them to lead the way out of the global recession. Steel prices have effected the expectations for the country’s growth, probably due to the fact that it consumes the most steel in the world. While steel prices have grown approximately 15% since November, they have declined by close to 9.5% in the past few weeks. Steel is a leading indicator for China’s economy; therefore, many people believe that the data produced in the past couple of weeks mean that the economy is not looking up. Another key indicator for the economy is their trade balance. Exports and imports have both declined. This is because international demand is down as well as domestic demand. A reason for this could be expectations. The title of the article attracts pessimism porn addicts, and disregards some aspects of the economy that are actually positive forces. News, like this article, could really be playing a big part of these plummeting expectations. An extreme solution to this issue could be restricting negative opinions of the economy; however, then it would be an infringement on the right of freedom of speech. Therefore, it seems our media is setting us up for a downward spiral of deteriorating economies.
Posted by Gracie at 2/28/2009 11:20:00 PM