The economic question which people ask me most often these days is whether the media can talk the economy into a recession.
For months I’ve been warning that economic growth was slowing down. Now it’s undeniable: The economy has slowed … and people are trying to figure out where to place the blame.
This is going to be kind of hard for me to say, but for once, I don’t think the media is to blame. This slowdown is not driven by falling consumer confidence, the sort of thing that the media can influence.
No, this slowdown is driven by a slowdown in big-ticket capital spending: factories, power plants, gigantic earth movers, ships, planes, etc. which are not performing well. Decisions about those items are made by serious analysts with serious spreadsheets, not by watching cable pundits.
There’s no need to point a finger at the media on this one.
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