In the wake of former Sen. Phil Gramm's statements earlier this week about this being a nation full of whiners, the good folks at ABC's "Good Morning America" brought on a consumer psychologist Sunday to discuss whether or not the McCain advisor had a point.
Shockingly, not only did Kit Yarrow tell host Kate Snow that "the way consumers feel about things is very emotional," but also these "emotions are trumping reality" thereby creating a snowball which makes the economy worse.
Yarrow not only believes that things are "not as bad as consumers feel like it is," but also that the media are at fault because "everything is described as a crisis."
What follows is a partial transcript of this rather shocking and refreshing exchange (video available here, photo courtesy ABCNews.com):
KATE SNOW, HOST: So, things are certainly bad for a lot of Americans. I don't think we want to discount that. But you say this is a psychological recession. What do you mean by that?
KIT YARROW, PSYCHOLOGIST: It's a snowball, really. I think the way that consumers feel about things is very emotional. And those emotions are trumping reality, creating this snowball where they're pulling back on spending which is then making our economy worse. It's not quite as bad as consumers feel like it is.
SNOW: How so? How is it not as bad as we think?
YARROW: Well, you know, we've had really great prosperity for the last few years. We've had very cheap gas. We've had a lot of increase in our home values. We've had it really pretty good as stock market increases. And, emotion is always caused by this mismatch between what we perceive and reality. Right now, I think there's a big mismatch between what we perceive should be, basically our expectations of the economy and now what we're getting. And that's causing people to feel fearful, and upset and angry. And, really, it's that emotion, the psychology that's contributing to our economy right now in a negative way.
SNOW: To fall on our sword here a little bit, do you think part of it's our fault, the media's fault for constantly talking about how bad things are?
YARROW: I do actually. Yeah, I have to say some of it does there. Everything is described as a crisis. And you know there's been a preponderance of information coming at consumers, I think just the volume of it. And, it's described in anecdotal terms as well, which causes consumers I think to feel especially fearful. When you describe an individual's personal situation, I think people empathize with that, and it makes them feel really afraid for their security as well.
SNOW: How much is about expectations though also, in terms of, things have been going so well for so long, do we sort of think that's what we deserved, and now things aren't going maybe quite as well, we suddenly think it's terrible?
YARROW: Absolutely. It's very well put. So I think we've become quite entitled to a sense that we're going to have continued prosperity, and, you know, if we hadn't had it so good for so long, I don't think there would be this level of emotion that's causing us to drawback on our spending. It's really more like, we expect it to be great growth, and you know any sort of normal growth is considered a catastrophe now.
SNOW: Which is not to say it's not painful to go to the gas pump and pay those prices. Well, thank you so much -- go ahead.
YARROW: I was going to say, and you know, gas prices and food prices in particular are causing people to be very emotional about it because every single day, they're aware of difficulties.
SNOW: Hits you right in the face.
YARROW: It does.
SNOW: Kit yarrow thanks for being with us. Very interesting.Interesting indeed.
—Noel Sheppard is the Associate Editor of NewsBusters.
Editor at Large
Comments Policy
No recession here
July 13, 2008 - 19:08 ET by 10ksnookerNope, the downturn is caused by the Democrat Marxists in Congress restricting the oil and other energy supplies.
Vote them out.
If anything happens from
July 13, 2008 - 19:14 ET by stratmanIf anything happens from this exchange it will be the ProgessNOTs spinning it that McCain threw his BFF Phil Gramm under the bus, down the well and into a black hole for the sake of politicking. The obvious tie-in will be that Obama's not so bad because Wright was wrong. Then the MSM and Progressnots will go back to scaring regular folk with talk of recession/depression.
RRAM Tough!
Strat
July 13, 2008 - 19:20 ET by Noel SheppardStrat,
Though I agree with Gramm's view, I think he poorly stated it in an election year. I don't think it gets you votes calling people whiners -- even if they are whiners.
Politically, this was foolish. That's why McCain had to distance himself. ns
I agree; he could have put
July 13, 2008 - 19:36 ET by motherbeltI agree; he could have put it better. He should have said it doesn't meet the definition, but to people having a tough time making ends meet, it sure does feel like a recession.
And Yarrow is right: every day it's story after story, one anecdote after another about how terrible it is. Then, even if you're doing OK, you start to feel like everybody else is in trouble, so it must be bad.
Years ago, when we had those great floods all along the Mississippi, they led with it every night; one family after another who lost their home, or their farm, etc. At one point I thought: Good grief! Are they going to keep this up until they have interviewed every single person along the Mississippi?? Not that you don't feel sympathy, but they really do overdo it.
Shoot 'em all; let God sort 'em out! - Marge Simpson
Noel: I also agree with
July 13, 2008 - 19:33 ET by stratmanNoel:
I also agree with you. "Whiners" was a very poor choice of words if referring to the American people. Now if he was referring to the MSM, then I am all for it as long as that is made perfectly clear... which it wasn't!
My post concerned the approach the Left might use to spin it further to their advantage, not to the appropriateness of Gramm's grammar.
To be fair, I have not seen such sloppy national politicking on either side in quite a while. Maybe things weren't reported as much in the past.
RRAM Tough!
I agree with NS
July 13, 2008 - 19:34 ET by jefflebowskiGramm's message was correct but his wording was poor. It may not be an official recession but it sure feels like it when it costs $70-100 to fill up the gas tank. Lots of people are worried about their jobs. What is maddening is that America is sitting on a sea of untapped energy reserves and one political party is keeping us from tapping it. Get mad people!
Jeff Lebowski
www.angrywhitedude.c...
Jeff... I am mad...have
July 13, 2008 - 19:49 ET by bigtimerJeff...
I am mad...have been for years, knew this would have to come to a head...it is now.
'Bout time...
As for me Gramm's comments, which as a whole I understood and agree with, which I was the first to post them here with a link on OT days ago...McCain also could of put his words better and not immediately thrown him under the bus too...in my eyes it is getting to be a contest between Obama and McCain on who can have the highest pile of people under that bus.
Ah heck...pass the popcorn...it is going to be interesting....
"America isn't the problem...America is the solution." ~ Rush Limbaugh
jeff, the same liberal wing
July 13, 2008 - 21:14 ET by motherbeltjeff, the same liberal wing that has said for years that we had gas too cheap...we should be paying $5 or more a gallon like they do in Europe, are now howling loudest that it's Bush's fault etc. that we are in this mess, and Obama with his "failed policies of the past".....platitude after platitude.
When they wanted to tax gas even more to make people conserve more, that was OK. But now that it's a matter of supply and demand, they scream for someone to DO something!!
Shoot 'em all; let God sort 'em out! - Marge Simpson
Gotta disagree with you a
July 14, 2008 - 01:10 ET by robert108Gotta disagree with you a bit, Noel. This was an opportunity for McCain to show some leadership and instruct the electorate, rather than pandering to the fearmongering media, and he failed miserably. He should have stood by his guy, and explained exactly why PG was right, even if he wasn't "diplomatic" about it. PG told the truth, and it's always good to support the truth, if one is honest, that is.
Bob
July 14, 2008 - 01:22 ET by Noel SheppardBob,
I don't know. I could argue either way. I just don't think it's a smart thing to call potential voters whiners. I think this is especially true given the majority of people that believe the economy is doing poorly.
Look, as this article stated, perceptions are indeed important -- even when they're wrong. And, I think you're insulting people by suggesting that their fears and apprehensions are foolish, especially when your opponent is pandering to them.
This is a tough call, because I don't believe we're in a recession yet. But virtually everybody I know does -- including my wife -- and it's impossible to change folks' minds on this. ns
Noel: This is why I said it
July 14, 2008 - 12:16 ET by robert108Noel: This is why I said it was a call for leadership from McCain; he had the opportunity to explain real economics to the electorate, but he chose to be reactive, instead of proactive.
Seeing as how we have not even had one month of negative growth, we cannot be in a recession, unless you drastically redefine the term.
The "feelings" of which you speak are purely an outcome of propaganda. They have no basis in economic truth. Slow growth is not a recession.
One more thing: what you
July 14, 2008 - 12:20 ET by robert108One more thing: what you refer to as "perception" is really an impression caused by hearing only one side of the story, endlessly repeated, with no information coming from either Bush or McCain to counter it. Since there is no actual recession, there is nothing to perceive.
I love it when MSM members
July 13, 2008 - 19:35 ET by d1carterI love it when MSM members fall on their own swords...
Damn the recession, full speed ahead!
July 13, 2008 - 20:09 ET by Indiana JoeI've believed what this guy is saying for quite awhile. The MSM has been trying to talk us into a recession for a lo-o-ong time.
Well, screw 'em! I just went out and bought a new camper. Life's too short to run for cover every time Chicken Little squawks.
I'm doing my part to "jump start" the economy. ;^)
If it bleeds it leads, expecially what the press puts a knife in
July 13, 2008 - 20:50 ET by wdhorning"If it bleeds it leads" reads the old news philosophy, and of course if it does not bleed, then the press is quick to put a knife in it so it does bleed. This explains it all.
This confuses me, because
July 13, 2008 - 21:02 ET by CJK51This confuses me, because hasn't the media been telling us for months that we're in a recession, things are bleak, etc.? If this recession is now suddenly just in our heads, or at least in the heads of the chumps who believe anything coming from the media, isn't it safe to say the media are responsible for planting that notion? If that is indeed the case, I'm going to go out on a limb and guess they will NOT own up to it.
Not months, YEARS. Ever
July 14, 2008 - 00:59 ET by kgNot months, YEARS. Ever since Clinton finished his term. If Obama is elected the recession will be over by the end of January. I can't wait for the headlines.
"Forget change, I want improvement!"
Just because I'm paranoid,
July 13, 2008 - 21:39 ET by dmntd1Just because I'm paranoid, it doesn't mean they're not out to get me. Really.
Anyone else asking why the MSM is going down the road of "the economy isn't really that bad"? Granted, most right-thinking people realize it, but the MSM has rarely shown itself to think right.
I think the whole reason they're going down this road, and my opinion is worth as much as the paper this is written on (and yes, it's not written down!), is because they are going to attempt to show the country just how out of touch the GOP is.
They've pushed us right to the brink of a recession. We're not shrinking yet, but as far as they've pushed us, look for the economy to shrink for August. Maybe July. Probably September. Then, the MSM will pounce on the GOP and say "I TOLD YOU SO" about how bad the economy is. Remember, the Dems will only win this election if the Country loses economically.
Fascism is a religious conception in which man is seen in his imminent relationship with a superior law and with an objective will that transcends the particular individual - Mussolini
I'm not picking on you,
July 13, 2008 - 22:04 ET by Clear thinkerI'm not picking on you, buuuut, we know exactly what they are up to.
45 Communist Goals for America http://www.nationmakers.com/com_goals.htm
Born in '39. Dad had no
July 13, 2008 - 22:03 ET by cocodrieBorn in '39. Dad had no automobile, air conditioning, tv, vacations. We had everything we needed and the radio was nice. The whiners of today have all this plus computers and every other fancy gadget you can imagine. How deprived they are.
Amen! I strongly feel
July 13, 2008 - 22:07 ET by Clear thinkerAmen!
I strongly feel that we have been too successful and have a generation that now expects to be catered to. Maybe a little hard times would be good medicine for all the whiners out there. They can all bitch about how terrible the economy is while using DIAL-UP!
45 Communist Goals for America http://www.nationmakers.com/com_goals.htm
coco.. I could not agree
July 13, 2008 - 22:08 ET by bigtimercoco..
I could not agree more.
"America isn't the problem...America is the solution." ~ Rush Limbaugh
My dad was born in 22, he
July 14, 2008 - 10:27 ET by Dan The Man 2My dad was born in 22, he knows what a depression is and he reminds me all the time. Born in the country, real backwoods. He regales me of his adventures courting on horseback. He was a real hellraiser, the stuff of country songs are made of.
Nuke em til they glow then shoot em in the dark.
Yarrow hit the nail on the
July 13, 2008 - 22:18 ET by zfYarrow hit the nail on the head, because personal anecdotes are being used (which ignores that even in great economies there are people who suffer financially and sad anecdotes could be used any time) and because what is being effected is food (although I still find the hysteria around that overblown, many food items prices in my local Wal-Mart for instance have actually been rolled back and not raised) and gasoline prices and people see that everyday anyone who points out that overall the economy is not the imploding monster its being made out to be end up looking insensitive and mean despire having the facts on their side.
Making statements like the liberals on here do such as, "but look how people are hurting" and "oh, he is just too removed from ordinary folks" and other personal appeals are fine, but they tell only half the story and those who tell the other half should not be demonized. Especially when it can help people remember the blessings we still do have and start to take action and not just sit there and wallow in their victimhood. Hey, I've done it too, and trust me it accomplishes nothing.
The serious effects on media pawns
July 13, 2008 - 23:03 ET by needle“They (the Liberals) only tell half the story…”
Ha! Sometimes we are lucky when they tell that much. But people who care about the truth have to waste effort to sort out the truth from the fibs and disinformation. And then they and society in general have to deal with the media pawns (people trusting in the MSM and quite content to be mislead by the MSM) and their distorted world views and the misjudgments they make as a result of being mislead.
Impunitas semper ad deteriora invitat.
One term that I heard from a
July 13, 2008 - 22:21 ET by FishFace222One term that I heard from a local investment guy is that we are in a "fear session", not a re-cession.
Tofu getting expensive...
July 13, 2008 - 23:08 ET by Clear thinkerHere's another reason why libs think we are in a recession. Tofu is about to skyrocket because of lack of supply. But the libs have only themselves to blame...
http://www.youtube.com/watch?v=Jd_d95WDfXQ&feature=dir
45 Communist Goals for America http://www.nationmakers.com/com_goals.htm
this reminds me..
July 14, 2008 - 00:02 ET by Jnobleanyone else tired of the constant overuse of the word "Skyrocketing"?
Can't the MSM find a less worn out cliche than this one? Besides, it's used to describe almost anything that's gone up in price over the last few years.
Hot dogs cost a dollar more? "SKYROCKETING!!!!"
Price of gas went up four cents this week? "SKYROCKETING!!!"
I wonder what term the MSM would use to describe the ever-falling number of viewers and suscribers to the newspaper dailys? Is there a word they can find that's the opposite of their favorite "SKYROCKETING"??
Jnoble... ROFL! You are
July 14, 2008 - 00:13 ET by bigtimerJnoble...
ROFL!
You are so right....especially your last paragraph....
...they sure wouldn't use the word diminishing either in the scenario you were talking about there.
"America isn't the problem...America is the solution." ~ Rush Limbaugh
I think "freefalling" would
July 14, 2008 - 06:12 ET by motherbeltI think "freefalling" would be a good choice. LOL
Shoot 'em all; let God sort 'em out! - Marge Simpson
Skyrocketing!
July 14, 2008 - 08:01 ET by billbLet's talk college tuition......now you can use the term SKYROCKETING. How about a windfall profits tax on colleges and universities.
MSM - The fifth column
July 14, 2008 - 08:11 ET by Free StinkerYep! Sounds like a recession to me! /Sarcasm Off
If the MSM did this BS with Clinton, his last 12-18 months in office would have paled next to what we are hearing today.
I'm on the road, and posting less
July 14, 2008 - 08:27 ET by sarcasmoBut for the record, Fannie & Freddie are both pure socialism just like "IndyMac." It's the fiscal equivalent of heroin addiction at this point, and on that subject this is the most dishonest headline I have seen this year. Please, news media morons, put BS headlines like this in the form of a Vegas bet against even more socialist bailouts for irresponsible financial companies, so I can retire...
JMR
The tax & spend drug war looks racist in the real world.
Sarc
July 14, 2008 - 08:32 ET by Free StinkerGovernment not expected to help more companies
Sarc, I gotta tell you, I think whoever wrote that is a fool!
"not expected" What color is the sky in their world? ;-)