The Mass Media and its Impact on Economics

The Mass Media and its Impact on Economics

Meredith M. Price

The University Of Southern Mississippi

The Mass Media and its Impact on Economics 2

Abstract

Mass media is suggested to be a catalyst toward economic

impact. Studies posit that media information has either a negative and

positive affect, which in turn can impact individuals attitude.

Consumer behavior research supports the idea that negative media

content on the certain issues can cause the economy to fluctuate.

This paper explores how mass media functions and how media

concepts are related to economic impact. Research in media impact

on the economy of the Mississippi Gulf Coast after the Deepwater

Horizon oil spill is the focus of study. Relating media and its impact on

the economy is challenging but a necessary factor to study while in

pursuit of understanding other factors in economic impact and media

effects. The behavior of the economy can be impacted by how the

media presents information towards the public.

Introduction of mass media effects

Print, radio, television, Internet, and social networks are common

types of media. Media extends out to large masses of people and

provides information to the public on various subjects, entertain, and

to gratify peoples curiosities. As mass media has expanded and

become more obtainablecell phones, iTouch, and laptopsso have

the influences on a persons cognitive ability. It would appear that the

individual has become more reliable on consulting the media.

The Mass Media and its Impact on Economics

The news media is on a 24 hours and 7 days a week cycle. News

is constantly streaming on the Internet through various websites and

blogs. A widely accepted model of communication is the Westley-

MacLean model of communication. It describes how information is

gathered and disseminated to the audience (Severin and Tankard,

2001). A closer look at the Westley-Mac Lean model of communication

aids in the study of how the media functions.

The Mass Media and its Impact on Economics 4

(Figure 1). Westley-MacLean Model of Communication

Westley, B., and M. MacLean. 1957. A conseptual Model for Communication Research.
Journalism Quarterly, 34:31-38
The Mass Media and its Impact on Economics

Westley and MacLean (1955) posit four different participating

parties involved in media communications. The parties are of A

(advocacy role), C (communication), B (receiver), X (objects of

orientation), and f (feedback). Xs represent objects of orientation

which includes; events, objects, ideas, and people. The Xs are within

the sensory of A, B, and C. The A represents the advocacy roles and

observes the Xs and then transmits purposeful messages about its

findings through media.

C represents the communicator responsible for channel roles that

are received by B. An example of this would be television channels,

websites, newspapers, etc. C also functions as a gatekeeper which

selects information from Xs and A, and strives to satisfy Bs desire of

information. C then chooses what outlet/medium is appropriate for

obtaining information to B roles. Now with the Internet and faster

means of communication, C is able to receive information from several

The Mass Media and its Impact on Economics 6

Xs. However, creating meaning is difficult out of bias/raw information

from the Xs; therefore, A is still necessary for more accurate

perception, according to Westley and MacLean (1957). .

The Westley-MacLean model allows messages to be purposive

(with the intent of modifying Bs perception of X) or non purposive

(without any intent on the part of the communicator to influence B)

(Severin and Tankard, p. 61, 2001). With B being perceived as the

public or individual groups, they need information about their

environment to help gratify self-satisfaction and help solve problems

(Severin, Tankard, p. 63 2001). The model also provides feedback (f)

from the receiver (B) to the communicator (C) as well as from the

communicator (C) back to the advocate (A). Without this connection of

feedback from the different consumers there would be a lack in

information development and in construction information selection.

This model is important in the understanding of how consumers

take in news media and how the different channels, orientations, and

advocates can affect consumer perceptions. This mass

communications model aids in understanding how the different

theories of mass media effects could effect economic development.

MEDIA EFFECTS

The effects of mass media are theoretically applicable to the

fluctuations in economic development and are either direct or indirect.

McGuire noted several of the most commonly mentioned intended

The Mass Media and its Impact on Economics

media effects are; (a) the effects of advertising on purchasing, (b) the

effects of political campaigns on voting, (c) the effects of public service

announcements (PSAs) on personal behavior and social improvement,

(d) the effects of media ritual on social control (McGuire, 1989).

McGuire also pointed out the most commonly mentioned unintended

media effects; (a) emotional behavior, (b) the impact of media images

on the social construction of reality, (c) the effects of media bias on

stereotyping, and (d) how media forms affect cognitive activity and

style (McGuire, 1989).

In addition to these media effects, McGuires partner, McQuail,

summarizes that the main streams of effects research of other areas of

media effects are; (a) knowledge gain and distribution throughout

society, (b) diffusion of innovations, (c) socialization to societal norms,

and (d) institution and cultural adaptations and changes (McQuail

1972). A more in-depth analysis will be explored on specific media

effects in this body of work.

Media Agenda Setting

The concept of agenda setting set by the media is a likely factor

that can influence economic development. The agenda-setting

function of the media refers to the medias capability, through

repeated news coverage, of raising the importance of an issue in the

The Mass Media and its Impact on Economics 8

publics mind (Severin, Tankard pg. 219). McCombs and Shaw reported

the first systematic study of agenda-setting hypothesis in 1972.

Findings in McCombs and Shaws Chapel Hill Study supported

that media-agenda setting can influence political campaigns (1972).

Voter perception of a particular campaign platform was shaped based

on what the media choose to emphasis on. McCombs and Shaws data

suggested that a strong relationship between the emphasis placed on

different campaign issues by the media and the judgments of voters

are to the salience and importance of various campaign topics (1972).

A precursor to McCombs and Shaws hypothesis suggests that

what people will think the facts are, and what most people will regard

as the way problems are to be dealt with is portrayed through the

media (Norton Long, p. 260 1958). Also, mass media forces attention

to certain issues and are constantly presenting objects suggesting

what individuals in the mass should think about, know about, have

feelings about (Kurt, Gladys Engle Lang p. 232 1959).

Concepts that the media reported on were economic policy of the

different campaigns (McCombs and Shaw 1972). These reports could

influence consumer confidence. The level of consumer confidence

augurs consumer spending and thus the future trajectory of the

economy and it affects a variety of political behavior such as election

outcomes, macropartisanship (Erikson, MacKuen, and Stimson 2002),

presidential approval (MacKuen, Erikson, and Stimson 1992, public

The Mass Media and its Impact on Economics

policy mood (Durr, 1993), congressional approval (Durr, Gilmour, and

Wolbrecht 1997), and trust in government (Chanley, Rudolph, and Rahn

2000).

Additional experiments have been conducted to learn more

about the effects of media agenda setting. Media agenda setting

determines the criteria by which an issue will be evaluated (Iyengar,

Kinder, Peters, 1982). This concept is known as priming. Priming is

the process in which media attends to particular issues and not others

and thereby alter the standards by which people evaluate and act on

an issue (Severin, Tankard p 226). The concept of priming builds on

the idea that mass media does have the power to build agendas

outside of its own. Therefore, the media acts as a director, actor, and

consumer of its own product.

The application of agenda setting and its influence on economic

development can be seen in the case study of news coverage on

women in the 1996 Olympic games and how the economy had a slight

dip. Newspaper coverage of the 1996 Olympic games primarily were

of women due to the addition of two womens events debuted which

was soccer and softball, along with womens mountain biking and

beach volleyball. The media emphasized on womens progress.

Women also were recognized as an important television audience.

NBC, the official U.S. Olympic television network, sought to deliver on

The Mass Media and its Impact on Economics 10

promised rating to advertisers by attracting the largest possible

audience and women were the target (Kinnick, 1998).

Women decided to follow the Olympic games by watching

television rather than going out and shopping suggests Kinnick. This in

turn caused a brief moment of loss in the month of August in the gross

retails sales on a national level. Little growth in economic activity was

seen and some economist believe that the rise in women viewership of

the Olympics set off the slowing of gross retail sales on a national level

(Kinnick, 1998).

Cultivation theory, used in mass media studies, is a concept that

explains how peoples perceptions, attitudes, and values change from

consumption of media. Exposure to the same messages that debut in

the mass media produces what researchers refer to cultivation, or the

teaching of a common worldview, common roles, and common values

(Gerbner, Gross, Morgan, and Signorielli, p. 14 1980). Thus, Media can

have a negative impact upon cognitive thinking.

Psychological literature supplements the cultivation theory by

suggesting that unfavorable information has a greater impact on

impression than does favorable information, across a wide variety of

situations (e.g., Ronis and Lipinski 1985; Singh and Teoh 2000; Van der

Pligt and Eiser 1980; Vonk 1993, 1996). Stuart N. Sorokas (2006)

research in medias effect on economics suggests that there exists an

asymmetric responses to bad and good economic information.

The Mass Media and its Impact on Economics

Research in economics posits a prospect theory (Kahneman and

Tversky 1979). Prospect theory is a choice under uncertainty, which

contains a feature called loss aversion. People react more fervently

towards a loss in utility than they do towards a gain of equal

magnitude (Soroka, 2006). This individual-level loss adverse behavior

is evident in macroeconomic dynamics: consumption tends to drop

more when the economy contracts than rise when the economy

expands (Bowman, Minehart, and Rabin 1999).

Examples in media suggest that overemphasizing the prevalence

of violent crime (e.g., Altheide 1997; Davie and Lee 1995; Smith 1984),

and events involving conflict or crisis receive a greater degree of

media attention (Bagdikian 1987; Herman and Chomsky 1988;

Parachos 1988; Patterson 1997; Shoemaker, Danielian, and Brendlinger

1991). Most relevant to the current analysis, U.S. networks regularly

give more coverage to bad economic trends than to good economic

trends (Harrington 1989).

The prominence of negative media coverage may be driven by

the same individual-level theories such as media agenda setting,

priming, and framing. Journalists are individuals, writing articles to

appeal to other individuals and thus regard negative information as

more important, not just based on their own interests, but also on the

interests of their news consuming audience (Soroka, 2006).

The Mass Media and its Impact on Economics 12

There is however, an alternative explanation for the prominence

of negative news. It may be that media outlets emphasis on negative

news reflects one of the principle institutional functions in democracy:

holding current Governments (and companies, and indeed some

individuals) accountable (Carlyle 1841). Therefore, media is a

surveillance that mainly involves identifying problems and at times

over emphasizes negative information. But some scholars think it is

the medias job to do so (David Lyon, p. 21, 2007).

Surveillance of the media includes economy facts, stock market

reports and the overall well being of a nation (Severin and Tankard, p.

321, 2006). Surveillance function can cause several dysfunctions such

as panic due to the overemphasis of issues facing a society. Lazarsfeld

and Merton (1948/1960) noted that narcotizing dysfunction when

individuals fall into a state of apathy or passivity as a result of too

much information to assimilate may leave many audience members

with little perspective of what is normal.

Studies of media effects on economic fluctuations propose that

the 1990 recession, in popular belief, was widely spread by the presss

effect on peoples pessimism of the general economy (Marcelle

Chauvet and Jang-Ting Guo, 2003). Negative reports on the national

economy led to a fall in consumer confidence (Marcelle Chauvet and

Jang-Ting Guo, 2003).1

1
For example, The New York Times on April 3, 1991, reported a quote by Roger Brinner,
director of research at DRI/McGraw-Hill, that If consumers hadnt panicked, there wouldnt
have been a recession. In addition, the lead story in The Wall Street Journal on November 4,
The Mass Media and its Impact on Economics

In particular, the minutes of the Federal Open Market Committee

meeting in December 1990 pointed to consumer sentiment as one of

the principal contributing factors for this recession. Blanchard (1993)

and Hall (1993) both attribute the 1990 recession to a significant drop

in consumption, and speculate that consumer sentiment may have had

something to do with it.

Findings conducted by Chauvet and Guo (2003) pointed out that

consumption growth did switch to a low-growth state at the beginning

of the 1989 slowing of the economy (Figure 2). Consumer confidence

also fell during the slowing, as observed in all the previous low-growth

phases and recessions (f1) (Chauvet and Guo, 2003). However, the

probabilities of consumer pessimism based on non-fundamentals rose

only in July 1990, which coincided with the onset of this recession

(Figure2). The same pattern was observed for growth in personal

income, manufacturing trade and sales, and employment, whose falls

coincided with the beginning of this recession. Therefore, consumers

pessimism did not seem to be a source of this recession (Chauvet and

Guo, 2003).

However Chauvet and Guo (2003) notes that consumers

pessimism may have been an important factor in intensifying and

extending the 1989-1992 economic slowdown. The figures created by

Chauvet and Guo (2003) reveal that low consumption growth phase

1991, was entitled Economy in the U.S. Isnt Nearly as Sour as the Countrys Mood. But
Pessimism Could Become Self-Fulfilling Prophecy Further Stalling Recover. Can Attitude Be
Everything?
The Mass Media and its Impact on Economics 14

lagged consumers pessimism, and lasted until the end of the sample

in 1995. Thus, the unprecedented extended slowdown could have

been a reflection of consumers attitudes toward the economy after the

official end of the 1990 economic recession (Chauvet and Guo, 2003).

Chauvet and Guo (2003) proposed at the end of their research

that U.S. recessions and slowdowns could have been responses not to

shifts in economic fundamentals, but to agents self-fulfilling

pessimism.

(Figure 2). (f1-f4 clockwise starting top left) The 1990 recession: Probabilities of consumers
and investors pessimism, low
consumption and investment growth states, investment growth, 3-month T-Bill rate, growth
rates of employment, personal income, and salesNBER recessions (shaded areas) and
The Mass Media and its Impact on Economics

slowdowns (- - -).
Marcelle Chauvet . SUNSPOTS, ANIMAL SPIRITS, AND ECONOMIC FLUCTUATIONS.
Macroeconomic Dynamics, Volume 7, Number 1 (February 2003), pp. 140-169,
http://ejournals.ebsco.com/direct.asp?ArticleID=J8D8D5YBVKD44TTPFUQ6

Self-fulfilling pessimism is the result from news refraction

hypothesis suggested by McLeod and associates (1995). Their

hypothesis suggests that local content of news media exposure could

have a strong influence on perceptions of issues and the closeness of

home. Therefore, viewers doubts suppress the urge for action, and a

reclusive approach is taken towards issues (McLeod et al., 1995).

A study of the medias impact on the Mississippi Gulf Coast

economy after the Deepwater Horizon oil spill was conducted to

support the theory that media can potentially impact an economy.

The oil spill in the Gulf of Mexico, which began after the

Deepwater Horizon rig explosion on April 20th and continued to leak for

another three months was a challenging event for news media to

cover. Unlike most catastrophes, which tend to break quickly and

The Mass Media and its Impact on Economics 16

subside almost as fast, the spill was a slow-motion disaster that

demanded constant vigilance and sustained reporting (journalism.org).

Also the media had to learn how to report on the oil spill by using

NOAA (National Oceanic Atmospheric Administration) maps and by

consulting scientist and researchers who were part of the response

team for BP.

The story on a national level consisted of three competing story

lines-the role of BP, the Obama Administration, and the events in the

Gulf region. The coverage of the disastrous saga along affected

coastal states was in-depth. Texas, Louisiana, Mississippi, Alabama,

and the Florida pan handle was bombarded with journalists literally

waiting on the beaches and headlining articles about how the oil was

an economic, ecological, and political Armageddon.

To evaluate the coverage, PEJ (Pew Research Centers Project for

Excellence in Journalism) studied approximately 2,866 stories about

the oil spill produced from April 20 to July 28-from the day that the

Deepwater Horizon exploded to the day the BP CEO Tony Hayards

departure was announced. From that time, the oil spill was by far the

dominant story in mainstream news media in the 100-day period. It

accounted for 22% of the newshole and in the 14 full weeks included in

this study, the disaster finished amount the top three weekly stories 14

times (PEJ, 2010). It registered as the No. 1 story in nine of those

The Mass Media and its Impact on Economics

weeks (PEJ, 2010). Figure 3 represents the percent of newshole

coverage.

(Figure 3)

http://www.journalism.org/analysis_report/100_days_gushing_oil

Case Study

A study was conducted of the primary local paper of the

Mississippi Gulf Coast. The Sun Herald ran articles related to the oil

spill on a daily since April 22, 2010 until the end of the research on

August 31, 2010. In addition to counting how many articles appeared

in the Sun Herald relating to the Oil spill, a word count of oil/spill was

also conducted (Figure 4). In addition, two other newspapers that are
The Mass Media and its Impact on Economics 18

exposed to local residents were studied. Article counts were

conducted on the New Orleans Times-Picayune and the Mobile Press-

Register (Figure 4). These two papers also contained daily articles of

the oil spill.

(Figure 4)
Collected newspaper data
Newspaper
Source
April May June July August
Sun Herald 24 301 358 301 121

Press-Register 33 329 337 284 272

Times-
Picayune 12 206 234 181 52
The Mass Media and its Impact on Economics

Word Count
Sun Herald 120 1517 2430 1406 567

Source: Hard copies of each paper

Economic data of Gross retail sales and unemployment rate of

the three coastal counties; Hancock, Harrison, and Jackson, was

collected. The months of May, June, July, and September revealed an

increase in unemployment rate (Mississippi Department of

Employment Security, 2010), (Figure 5). The month of August reported

a decrease in the unemployment rate (Figure 6), which related to the

The Mass Media and its Impact on Economics 20

increase in BP volunteers for the month of July when the oil came

ashore more abundantly. Also the newspaper reports less on the oil

spill in the months of July and August. If all newspaper articles were

held constant from the previous month, Septembers increase in

unemployment though, would prove that little relation exists between

media and economic impact (Figure 7).

(Figure 5)
Collected Data of Article Count/WordCount,
Retail Sales% Change 09-10, Unemployment % Change 09-10
Source: Hard copy of newspaper/Unemployment Rates:
http://www.mdes.ms.gov/Home/docs/LMI/Publications/Labor%20Market
%20Data/labormarketdata.pdf
Mississippi Gross Retail Sales: Mississippi Department of Revenue:
http://www.dor.ms.gov/docs/stats_172summary_1010.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0910.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0810.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0710.pdf,
The Mass Media and its Impact on Economics

http://www.dor.ms.gov/docs/stats_172summary_0610.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0510.pdf,

2009-2010 2009-2010
Retail Sales % Unemployment %
Month News Paper Article Count Word County Change Change
May Sun Herald 301 1517 Hancock (-)6.12 1.6
Press-Register 329 Harrison (-)7.46 2.3
Times-
Picayune 206 Jackson (-)8.04 2.4

June Sun Herald 358 2430 Hancock (-)14.69 .9

Press-Register 337 Harrison (-)6.95 1.4
Times-
Picayune 234 Jackson (-)7.41 1.3

July Sun Herald 301 1406 Hancock (-)14.69 1.2

Press-Register 284 Harrison (-)10.54 1.2
Times-
Picayune 181 Jackson (-)3.73 1.2

August Sun Herald 121 567 Hancock (-)18.16 (-)0.3

Press-Register 272 Harrison 1.00 (-)0.3
Times-
Picayune 52 Jackson (-)2.38 (-)0.4
The Mass Media and its Impact on Economics 22

(Figure 7)
Mississippi State Tax Commission
Two-Year Comparison of Gross Retail Sales 2009-2010

Source: Mississippi Gross Retail Sales: Mississippi Department of Revenue:

http://www.dor.ms.gov/docs/stats_172summary_1010.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0910.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0810.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0710.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0610.pdf,
http://www.dor.ms.gov/docs/stats_172summary_0510.pdf

May 2009 2010 Difference

Hancock County $663,508,863.87 $622,871,688.98 ($40,637,174.89) (-)6.12%
Harrison County $4,049,297,147.04 $3,747,045,158.16 ($302,251,988) (-)7.46%
Jackson County $1,880,907,665.18 $1,729,726,459.39 ($151,181,205.79) (-)8.04
June
Hancock County $720,090,435.01 $675,428,513.22 ($44,661,921.79) (-)6.20%
Harrison County &4,392,627,311.30 $4,087,141,874.45 ($305,485,436.85) (-)6.95%
Jackson County $2,044,062,723.58 $1,892,597,535.49 ($151,465,188.09) (-)7.41%
July
Hancock County $71,296,099 $60,822,315 ($10,473,784) (-)14.69%
Harrison County $379,195,437 $419,153,048 ($39,957,611) (-)10.54%
Jackson County %185,656,947 %192,584,360 ($6,927,413) (-)3.73%
August
Hancock County $140,907,979 $115,323,203 ($25,584,776) (-)18.16%
Harrison County $751,422,627 $758,940,117 $7,517,490 1.00%
Jackson County $339,872,736 $331,777,981 ($8,094,755) (-)2.38
September
Hancock County $165,330,045 $198,709,060 ($33,379,015) (-)16.80%
Harrison County $1,073,863,967 $1,101,365,019 ($27,501,052) (-)2.50%
Jackson County $461,196,959 $484,196,969 ($23,000,010) (-)4,75%
The Mass Media and its Impact on Economics

October
Hancock County $213,678,199 $254,912,577 ($41,234,378) (-)16.18%
Harrison County $1,398,080,157 $1,425,405,084 ($27,324,927) (-)1.92%
Jackson County $605,895,473 $649,069,627 ($43,174,154) (-)6.65%

(Figure 6)
Unemployment Rate by County
Mississippi Department of Employment Security

May 2009 2010 % Change

Hancock 8.0% 9.6 1.6
Harrison 7.2% 9.5% 2.3
Jackson 7.8% 10.2% 2.4
June
Hancock 8.3% 9.2% 0.9
Harrison 7.8% 9.2% 1.4
Jackson 8.4% 9.7% 1.3
July
Hancock 8.4% 9.6% 1.2
Harrison 8.1% 9.3% 1.2
Jackson 8.7% 9.9% 1.2
August
Hancock 8.0% 7.7% (-)0.3
Harrison 7.7% 7.2% (-)0.3
Jackson 8.3% 7.9% (-)0.4
September
Hancock 7.9% 8.7% 0.8
Harrison 7.5% 8.1% 0.6
Jackson 8.4% 8.9% 0.5
The Mass Media and its Impact on Economics 24

A survey was conducted asking 100 coastal residents: What is

the greatest threat from the oil spill? 78% wrote that the greatest

threat was towards the local economy (figure 8). A pole conducted in

October revealed that: 42% believed the media coverage of the

Deepwater Horizon oil spill was a key factor the slowing of the local

economy while 37% believed the national recession was a possibility,

16% blamed it on Hurricane Katrina, and 5% responded: no opinion

(figure 9).
The Mass Media and its Impact on Economics

(Figure 8)

(Figure 9)
The Mass Media and its Impact on Economics 26

Dead sea turtles wash ashore, claimed the Sun Herald on May

2, 2010. Journalist would write articles about the turtles even though

their cause of death was not related to the oil spill, which was proved

by marine biologists. These types of articles began to frequently

appear in the local papers such as the Times Picayune of New Orleans,

LA, the Pres-Register of Mobile, AL, and the Sun Herald of Gulfport,

MS. These three papers were of particular interest in this case study

because they are the most consumed papers along the Mississippi Gulf

Coast.

The media agenda setting effects began to naturally set in as the

oil continued to gush. Story after story from journalist trying to outdo

each other has filled the wires for years to come of the effects of the oil
The Mass Media and its Impact on Economics

spill. There was an overreporting of significant but unusual events.

This was an issue in the Santa Barbara oil spill, which was significant

but received exaggerated coverage because of its unusualness and

because people enjoy the sensationalism (Severin, Tankard p 232

2001).

Observations suggest the medias agenda emphasized on

gushing oil, dying wildlife, tainted seafood, and oiled beaches (Sun

Herald appendix) the media did not specifically state that small regions

affected. Even though the media was clear in portraying which areas

were being impacted, the content was correct. The effects of the media

on a national level could have possibly impacted people pessimisms

and following with possible economic slowdown suggested by

(Chauvet, Guo 2003), economy (figure 9).

As the surge of media reports on the oil spill flooded the mass

media, economic impact along the Mississippi Gulf Coast experienced

little significant growth. Overall, the oil spill created job losses and also

crushed the fishing industry, which had a ripple effect that reached

restaurant nationwide. At the same time though, BP created

temporary jobs along the gulf states and also occupied hundreds of

hotel rooms. These factors are significant in contributing towards the

economic data researched.

Adam Sacks, managing director of Oxford Economics USA

mentioned that History and current trends indicate a potential $22.7

The Mass Media and its Impact on Economics 28

billion economic loss to the travel economics of the Gulf Coast states

over the next three years could be possible (Sun Herald 07/24/2010).

Sacks continues, One of the most cost-effective ways to mitigate

these damages is to immediately fund strategic marketing to counter

misperceptions and encourage travel to the region (Sun Herald

07/24/2010). Misperception created by the media is a factor that

Sacks mentions in his consulting towards the Gulf Coast tourism sector.

Conclusion:

Theories support the idea that mass media has significant

economic impact. Media theories such as media agenda setting,

priming, framing, and cultural theory support the concept of how

media can impact an economy, however little research has been

conducted on this subject. Economic research supports the idea that

sentiments of the consumer can be affected by media content and

therefore could lead to fluctuations in the economy.

Research posited by Chauvet and Guo (2003), support the idea

that an economic slowdown is impacted by agents self-fulfilling

pessimism. Studies such as Sorokas work (2006) strengthens the

argument that; public responses to negative economic information

such as the oil spill, are much greater than are public responses

towards positive information. This suggests that the medias portrayal

The Mass Media and its Impact on Economics

of the oil spill could have caused more harm than good on the

perception of the local economies.

Limitations: The case study of how medias coverage of Deepwater

Horizon and the impact on the Mississippi Gulf Coast economy is

limited in many ways. More economic data such as sales tax, inflation,

and direct tax losses would aid in further research of how the effects of

media relate to the economys slump. Also, data starting pre Katrina

would an important addition to real the fluctuations in the economic

cycle of the three coastal counties.

Additional newspaper research is necessary in the future of this

research. The reflection of the articles, negative or positive, could

support the pole data that was conducted as well. Time constraint was

the greatest obstacle in research. Greater evidence from next years

economic data would be of better support that what is available now.

Quantitative research now is rather premature at this moment.

The Mass Media and its Impact on Economics 30

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