You cannot open a newspaper or magazine, watch television, listen to the radio, or turn to the Internet, without someone telling you about the dire economic times we are living in. For many, asking the question of whether or not the economy will bounce back again is something they have given up doing. Still, there are those that cling to hope, responding to claims that one day unemployment will be a thing of the past. But can watching the news affect the economy in any real way? The answer might surprise you f95zone .
Yes, being exposed to the daily news can most definitely influence the economy, because it influences the people. This is called consumer confidence, and in the US there is a CCI (Consumer Confidence Index), which actually measures how much consumer confidence there is when it comes to retail purchases.
What is very interesting is that things that occur in the rest of the world can influence our consumer confidence. Even if the news is about something happening in the Middle East, for example, it has the power to influence the economy at home.
The Consumer Confidence Index (CCI) is nothing new. In fact it has been in existence since the ’60s. Manufacturers, retailers, banks, and so on, all monitor the changes that occur in the CCI, so that they can make decisions that will affect their financial situations. The CCI can change drastically in a short space of time, but small changes are usually not taken much note of. One thing is certain, though, and that is that the stories that made it into the news the month before will affect the CCI the month following.
In keeping with our earlier example of the Middle East, let’s say that there is peace in the region. When that happens, oil prices are known to be affected here at home. No matter what the news may be, whether it pertains to the cost of health care or the weather, it has the power to significantly impact the CCI for each of us on an individual basis, our own personal CCI, if you will. Like it or not, your decision to purchase a new home, or a motor vehicle, for example, will depend largely upon the opinions you have regarding the economy. Your opinions about the economy are in turn influenced by the news you read in the newspaper, hear on the radio, watch on television, or find online.
Of course when it comes to getting news to the masses, time has certainly brought about some very notable changes. Although traditional media has held sway for a long time, the prognosis for its future is not promising. The Internet has blasted its way into our lives, reaching more people in a shorter space of time than either radio or television did. Social media alone makes it possible for people to connect to each other, and communicate in ways never imagined of just a few years ago, with alarming ease and speed. This means that news and information has never been more widely accessible for the general populace, when they want it, and on their terms.