Media Coverage of the Global Economic Crisis

Below is an article from October 4th that I found in the Canadian publication The Star. The article is incredibly relevant to what we discussed in class last week: how global media is covering the economic crisis. Clearly, as we've identified, the crisis is evident and effects the whole world as the United States has become a superpower in global economics. One idea we have yet to discuss (this is a perfect lead in for those of you who want to comment) is whether the media coverage is informing or alarming media consumers. It seems to me that in the spirit of appealing to peoples' emotions, alarming is the method of choice. As the article points out, though, we must not forget the other side of the emotion spectrum: assurance that everything will be okay. It would be great if media could stick to the facts and do the simple task of reporting, but as we all see as we look at global coverage on this crisis, not many sources are giving us the straight up facts. I encourage you to take a look at this article and critically read other articles with this in mind so that you can be a smart media consumer.


Oct 04, 2008 04:30 AM
Kathy English
As global markets plunged in past weeks, it's not surprising that public interest in news about the economy soared.
A U.S. study released this week indicates record interest in economic news. The current global crisis ranks among the top 10 news stories since the mid-'80s, coming sixth in public interest behind news of the 1986 Challenger disaster, 9/11, the 1989 San Francisco earthquake, Hurricane Katrina and the gas price hikes of 2005.
It's also not surprising to me that as public concern about the economy deepened in 2008, daily newspapers have been the news source people are most likely to turn to and the news source most likely to provide extensive coverage of the economy. That's because "traditional media" such as the Star are most likely to have the journalists to report fully on this complex crisis that fundamentally affects us as both citizens and consumers.
"Generally speaking, daily newspapers – which, in many cases have sizable business staffs regularly covering the subject – have been in the forefront of economic coverage," concludes a report last month by the Project for Excellence in Journalism (PEJ).
Indeed, the Star has reported extensively on what's now generally regarded as the worst financial crisis since the Great Depression, playing this historic story prominently on page 1 in recent weeks. And though the Star has the leanest business section of the three Toronto daily broadsheet newspapers, the newsroom has consistently provided smart news, analysis and editorials about the Canadian and global economy throughout this year of global uncertainty.
The work of the Star's 20-member business department has helped readers understand the interrelated nature of these complex economic developments, with numerous articles in past months on the beleaguered auto industry, soaring energy prices, Ontario's manufacturing crisis, housing values and the ongoing indicators and implications of a slowing economy and possible recession.
Of particular note in helping me make sense of all of this chaos is the news reporting of Rita Trichur and the cogent analyses of columnist David Olive. His May 8 article stating that the worst is likely not over and indeed, "actually there's a Prada inventory of shoes to drop," now seems quite prescient in explaining various pieces of the economic puzzle to create a picture of a looming "crisis of crises."
Anxiety about the economy in the midst of uncertainty is a story that affects almost everyone at the most basic level of their personal financial security, and the media have a responsibility to report from a variety of perspectives. Readers look to and depend on trusted media sources for answers: How much savings did we lose? Is my job safe? Will I be able to fund my retirement? Did the value of our home drop?
Those are the questions of the lucky middle classes. For those less privileged, the questions are more dire: What happens when our EI runs out? What's left for groceries this month? Where will we live?
Far more challenging and complex questions regarding accountability for this global crisis also demand answers. How and why did this happen and who is responsible? With elections underway in Canada and the U.S., this is now more than an economic story – it's become the primary narrative driving both election campaigns, and the media must hold politicians to account here.
There may also be some connection between increased news coverage, growing public anxiety and the behaviour of the markets. In May, Douglas Porter, chief economist of BMO Capital Markets, suggested that "gloomy headlines" played a role in declining Canadian confidence. Last month's PEJ report, asks this: "Are the media reflecting public concern about the economy, telling a story they know the public is interested in hearing? Or are the media manufacturing public concern, driving a crisis in consumer confidence?"
Should the media draw a line between informing readers and alarming readers by reporting fully on negative trends that lend themselves to those gloomy headlines? Or, should we look to the optimists who present a rosier picture?
Star business editor Mark Heinzl believes it's important to seek out a variety of perspectives and experts to make sense of the current chaos. But, he adds, "I don't think you can get too alarmist when some of the oldest institutions on Wall Street collapse, when massive banks fail and millions of people are left wondering what is happening to their lives."
I agree. With public interest in this economic crisis at a historical high, and readers turning to newspapers for critical information, this is no time for newspapers to sugar-coat economic realities.
publiced@thestar.ca.