Media Negativity Fuels Public Pessimism About Economy Despite Strong Data
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Media coverage of the economy since 2018 has been more negative than economic data would suggest, fueling public pessimism.
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Variables like GDP, inflation, unemployment don't fully explain worsening consumer sentiment over recent years.
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Researchers hypothesize negative economic news makes people feel economy is weaker than it is.
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Between 2018-2020, media tone was more negative than model based on past data predicted. Got even worse 2021-2023.
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Despite strong economic data, public sentiment remains low. Media negativity may drive disconnect between actual and perceived economic performance.