The Medias Top 10 Economic Myths of 2005: Executive Summary

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 It was difficult to wade through the economic news of 2005. Gloom and doom overwhelmed any rational examination of the U.S. economy. Journalists were so obsessed with their negative outlooks that they set aside reason and reported one fantasy after another. TheBusiness & Media Institute compiled the 10 worst:

10. America should follow French fashion in business
     Media Myth: France’s short work week, benefits and loads of vacation time made it a workers’ paradise.

9. We must raise taxes to cope with ballooning deficits
     Media Myth: Spending for hurricane recovery and Iraq is driving the U.S. deficit out of control. The only answer is to raise taxes to pay for it all.

8. Global warming is causing stronger hurricanes
     Media Myth: Thanks to the U.S. rejection of the Kyoto treaty, global warming is on the rise and warmer oceans are spawning deadlier hurricanes than ever.

7. America is cheap with its foreign aid
     Media Myth: At least our good-hearted celebrities understand that compared to other nations, America doesn’t give much to help the world’s poor.

6. Hurricane Katrina will send the economy into a tailspin
     Media Myth: With homes and businesses destroyed and the nation’s oil supply hit, the United States will surely hemorrhage jobs and head toward a huge downturn in Katrina’s wake.

5. The housing bubble is about to burst
     Media Myth: The housing market, white-hot for so long, is about to go bust and take you and your home’s value with it.

4. Americans are dying to be fat
     Media Myth: America is suffering from an obesity epidemic, so we’ve got to keep everyone away from foods and beverages with calories. This has become the nation’s No. 1 health problem and we’re dying at the rate of 400,000 a year.

3. Consumers are choosing between food and fuel
     Media Myth: Rising energy prices mean there won’t be much in little Timmy’s stocking this Christmas. Mom and dad can’t heat their home and buy food, so other business sectors are going to get Scrooged.

2. Big, profitable companies are up to no good
     Media Myth: Big money-makers like the oil and drug industries should be sharing the wealth. Oil companies were profiting off others’ misfortunes – laughing all the way to the bank while you got squeezed at the pump. And Wal-Mart’s business practices were just as bad.

1. The U.S. economy is hopeless
     Media Myth: There are plenty of reasons to doubt the economy. Gas prices; housing bubble; auto workers losing jobs… the evidence is everywhere.