What is the News Media?
What are common sources of news?
What does “supply” reflect?
How does the source of the news you consume influence the news you consume?
Upward slope, where X = quantity and Y = price
Higher the price …?
Government Regulation of the Media = Federal
Lower the price …?
Suppliers produce MORE when prices are high; why?
Demand Assure fair treatment / access to airwaves for political candidates and office holders
Trends in the Media -
What does “demand” reflect?
Journalism of Verification (traditional image of reporters tracking down story, confirming its accuracy, etc)
Journalism of Assertion (opinion journalism)
Journalism of Affirmation (politically biased reporting that confirms the viewer’s perception of the world)
Downward slope, where X = quantity and Y
The higher the price . . . ?
The lower the price … ?
Consumers demand MORE when prices are low; why?
Equilibrium between Supply and Demand -
Remember, media producers are
Focus by audience (appeal to young / old)
Focus by specialization (ESPN)
Focus by ideology (MSNBC = liberal; Fox
News Channel = conservative)
What is bias?
If a survey shows apparent bias amongst journalists based on their voting record, does that prove media bias? Why or why not?
Reflects intersection of S and D curves
Means that the amount of goods being supplied is exactly the same as the amount of goods being demanded
When this happens, everyone is happy! -
Why does this not happen in the real world?
Business Cycle & GDP
Refers to shifts in the economy, over time
Measured by growth rate of Gross Domestic
“Objective” news a post WWII concept
Throughout most of American history, news sources were biased
Whose responsibility is it to determine what the news means?
GDP = total market value of all goods and services produced in a period of time
Parts of the Business Cycle: Expansion, crisis, recession, recovery
How has the government influenced the business cycle since WWII?
Government Regulation of the Economy
Supported by liberals
Economic regulations of prices, especially of agricultural prices
Anti-trust laws that seek to prevent business mergers that would result in limited competition
Other bases of government regulation
Protecting public’s health and safety
Maintain clean, healthy environment
Prevent businesses from failing through bailouts, direct purchase of business by gov’t – appropriate purpose of gov’t regulation?
Supported by conservatives
Fewer government rules on business
Arguments in support of deregulation
Less interference with free enterprise
Regulation increases the cost of doing business
Is deregulation appropriate or not?