The federal budget is $6 billion poorer than last spring’s budget thought it would be after GDP growth fell in the first half of this year. What they’re referring to are the different economic philosophies which, unless you’re an economist, or are studying to be an economist, you don’t need to worry about. Don’t get confused by the term positive”, it doesn’t necessarily mean pleasant”; Positive Economic statements are neither good news nor bad news, they’re simply statements of fact. The aggregate of each individual’s pursuit of his own interest leads to economic growth that benefits everybody.
This explanation would tend to lead you to believe that all economists pretty much agree on current economic conditions, since they’re all reading and evaluating the same set of data. For the most part, Economics is all just best guess” anyway, since you never know what’s going to happen to completely change the current economic climate; economic forecasts looked a lot different on September 10th, 2001 than they did on September 12th. Being able to understand current economic conditions can help you determine the best ways to invest for your future.
Those who know how to understand how the economy works, and how to evaluate the current economic climate, can make much more informed decisions when it comes to spending their hard earned money. Knowing how to evaluate the difference between supply and demand can help you buy much more effectively, saving you hundreds, if not thousands, of dollars a year. The news media perpetuate this defiance”—this discrepancy in the ideals of capitalism and the realities of capitalism.
According to Theodore Peterson (1966), Dean of the College of Journalism and Communications at the University of Illinois, the news media in the United States contribute to society in their role to enlighten” and inform the public (p. 38). But, Edward Herman (2002), Professor Emeritus of Finance at the University of Pennsylvania, has argued that the news media also participate as corporate contributors to the market system.
While Smith (1982) has argued that the capitalist system provides firms incentives to produce efficiently, Bagdikian (2004) has argued that the news media do not use their incentives to compete with each other, leading to inefficient outcomes. Bagdikian (2004) has suggested that the news media is an example of market failure in its lack of competition, yet Herman (2002) has suggested that the news media still support free market ideals.