Rewriting Ronald Reagan: The Reaganomics Recovery
Few now remember that 1979 and 1980 were the nation’s worst economic years since the Great Depression. Reagan saved America from Jimmy Carter economics: he brought inflation down from 13.5 to 4.1 percent; unemployment, from 9.5 to 5.2 percent; the federal discount rate, from 14 to 6.5 percent. Under Reagan, the number of jobs increased by almost 20 million; median family income rose every year from 1982 to 1989. It was the greatest peacetime expansion in American history. Charitable giving more than doubled, to more than $100 billion in 1988. But the media elite’s first drafts of history ignored the good news and highlighted the bad news. In a study of almost 14,000 network stories on the economy during three one-year time periods – July 1 to June 30 in 1982-83, 1984-85, and 1986-87—Virginia Commonwealth University professor Ted J. Smith III found that as the economy improved, the amount of network TV coverage shrunk and grew more negative in tone. The ratio of negative to positive stories aggressively increased even as economic indicators improved, from 4.9 to 1 in 1982-83 to 7.0 to 1 in 1986-87. When an economic indicator grew better, the networks began covering it less so they could focus more on unhealthy economic signs. For instance, as the unemployment rate fell from 10.6 percent to well under 6 percent by 1987, the number of stories on employment plunged by 79 percent while reports on the growing trade deficit soared 65 percent and stories on the homeless jumped by 167 percent. The media had a theory to prove: Reaganomics was a dramatic failure.
Posted by
on February 2, 2011. Filed under