Newsletter (3)

Market NewsStock Market crash worries are leading investors to interesting places to keep their money. Although different news stations may adhere to a different set of ideological values, MSBC may be more liberal while FOX may be more conservative, individuals are exposed to the same news content on the Big 5 news media networks. As a part of capitalism’s emphasis on high-efficiency, sociology and phycology professors, Croteau, Hoynes, and Milan (2011) have argued that the corporate news media owners demanded substantial returns on their investments” (p.59), which created profit pressures. The Fed cut rates by 75 basis points, cutting today’s market losses to only 140 points.

They claimed that these profit pressures have encouraged news content to attract large audiences and to be cost effective. Croteau, Hoynes and Milan (2011) wrote, Newspaper editors, increasingly trained in the world of business instead of news reporting, focus more on marketing and packaging the news” (p. 59). The market reaction to good or bad news in a bear market will be negative more often than not.

Packaging the news entails sensationalism and bias, which hinders the consumer’s ability to distinguish between the quality of the media’s goods—information. Structurally, the news media is part of the market, making it unlikely for the news media to be antagonistic toward the market. Herman (2002) wrote, The mainstream media strongly supports markets, in the sense of privatization and reliance on markets, on the one hand, in the sense of what the dominant elements in the market want, on the other hand” (p. 78). News media conglomerates have generated more revenue by providing information which reinforces a viewer’s values.

In other words, the news media will most likely support legislation that reinforces market ideals, but will still criticize actors that violate accepted business norms, injure innocents, and jeopardize the market system as a whole” (Herman, 2002, p. 78). Since the American viewer values the ideals of capitalism: competition, social mobility, and equal opportunity, the news media does not challenge those values. In other words, as part of the market, the media are unlikely to be hostile to the market and oppose policies that dominant members of the market support” (Herman, 2002, p. 78). An article by The Week (2011) has created a time line of the Occupy Wall Street movement.

This has been most recently illustrated in a two month survey of the news media’s treatment of the unemployment crisis. ThinkProgress (2011), an American political blog sponsored by the Center for American Progress, conducted a study during the last week of July and found the word debt” was mentioned more than 7,000 times on MSNBC, CNN, and Fox News while the word unemployed” was only mentioned 75 times. Because the mainstream news media is a corporate structure, it must be selective as to how it allocates its resources.

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