Are we all Keynesians now? The US press and the American Recovery Act of 2009

Abstract

It is widely believed that the media has an important role to play in promoting development and in shaping economic policy. This is done partly by the media’s framing of the issues for public debate and by educating consumers of news. Increasingly, economists have shown that the media has played a constructive role in promoting informed civil engagement on economic policy and even in promoting corporate governance. At the same time, the business press has been referred to as the weak link or ‘step child’ in an increasingly professional and knowledgeable news room. Among other critiques, business journalists are faulted for being ideologically captured, and so generally presenting a pro-business/market point of view. They are often accused of being not only biased, but too ill-informed to write in an analytical or critical way about economics. This article examines the US press coverage of the stimulus package over several months in 2009 to ascertain the validity of these hypotheses. We found that although there was robust discussion of the stimulus, it was mostly focused on the political process rather than the economic issues, there was little agenda setting and government and business sources – including many with a ‘vested interest’ – were overwhelmingly cited the most.