Abstract:

This paper first identifies and then proceeds to analyze the impacts of a critical disconnect between public perception of economic policy and reality regarding policy efficacy. This disconnect is evident when examining the great recession of 2008, both in the time leading up to crisis and during crisis management. In the decades leading up to the market turmoil, Alan Greenspan helped set the stage for crisis in his staunch support of deregulated markets in addition to his approval of bank consolidation, push for financial deregulation, proposal of new global rules to reduce bank capital reserves, and blocking of efforts to crack down on abusive subprime lending (Pearlstein, 2013). The public overall maintains a positive opinion of this former chairman who played in instrumental role in enabling the 2008 crisis. Meanwhile Ben Bernanke faces national criticism for the bank bailouts orchestrated by his team which in effect saved the financial system from far greater harm than it endured. This can be assessed by juxtaposing the wide impacts of the Lehman Brothers bankruptcy and collapse to the bank bailouts which made the tax-payers money in the long run. This paper finds that a disconnect does exist and is furthered by the increased consolidation within television broadcasting and the positive feedback loop created on social media platforms. These platforms are incentivized to promote content which reinforces a previously held belief rather than exposing the user to new and possibly disagreeable information, furthering this disconnect.