Sunday, January 20, 2008

Does the press cause recessions?

The Economist magazine, by counting the number of times the word "recession" occurs in leading American newspapers, claims the press predicts recessions by a quarter or two.

But they fail to establish cause and effect. What if the press actually causes recessions by scaring consumers and corporations with its lazy me-too, follow-the-leader reporting techniques?

Here's an article that does say doom-and-gloom talk could lead to recession, in this case a double-dip recession. If press coverage can cause a double-dip recession, press coverage can certainly cause a recession.