The mass media, advertising and ICT play an increasingly important role in both market systems and capitalist crises. This role directly impinges on the dissemination of information to market actors as well as the reflexive and dialectical nature of the processes by which actors respond to market information. Further, the media serve as an ideological apparatus, resource or arena which acts to naturalise the market through what this research describes as a market orientated framing mechanism (Preston and Silke 2011).
Thompson (2003) contends that communication is an integral and reflexive part of the contemporary market system. As he puts it, there is a complex relationship between the producers and distributors of economic information, and those who use that information to make decisions about investment and trade. Many recent studies point to the convergence of flows of information such as those on 24 hour news channels, business channels and internet blogs and sites with market activity itself. For Hope, (2010) information broadcast on such media by bankers, stockbrokers and traders themselves tends to be self-serving and inevitably leads to ‘a real time feedback loop that proliferates then contributes to the growth and collapse of speculative bubbles’ (Ibid p. 665). Finally, we must note how the mass media also play a pervasive and important role in the commodification process through advertising and indeed comprises a part of the circulation of capital itself (Garnham 1979, Fuchs 2009). This research reflects the Marxist concept of base and superstructure, beyond a perceived notion of economic determinism, but rather as a dialectical relationship between various superstructures, in this case the state and the media, and the economic base including the various aspects of class power inherent within.
Since the onset of the ‘great recession’ there have been key debates around various aspects of crisis theory, most notably around the areas of the rate of profit (Brenner 2009, Kliman 2012), under-consumption/overproduction (Clarke 1990) and fiancialisation (Duménil and Lévy 2004). This research maintains that communications and the media are a key though non-deterministic element of the contemporary market system and proposes a move towards a crisis theory of communications.This paper explores theoretical aspects of the evolving role of the media with respect to deep and prolonged financial and economic crises, especially the ‘Great Western’ crisis since 2008.
As empirical reference point and by way of case study, the paper considers three key moments in the Irish economic crisis and their treatment by sections of the mainstream press media: The Irish property market in the run up to the 2007 general election on the cusp of the Irish crash, the blanket bank guarantee of 2008, where the state effectively guaranteed the debts of the entire Irish banking system in its totality, and finally the introduction of the National Asset Management Agency, a state sponsored bad bank aimed at cleaning up the (then) private banking industry. The paper uses these examples to consider the role of the media and its relationship to both the markets and political policy.
Henry Silke 2014
This is an abstract for a paper to be presented at ECREA 2014, Lisbon Portugal
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Amongst everything else that went array during the boom years in Ireland was the lack of any significant critical media analysis of the property sector and related fields. As has been documented by Julien Mercille, the majority of commentary during this time gave further fuel to the unsustainable model then being pursued. This was supplemented by newspaper property sections festooned with glossy adverts for the latest in lifestyle possibilities. It should therefore be seen as a positive step that one of the key differences between now and then is that the level of discussion and debate has moved on somewhat. For example, with particular reference to Dublin, we have had a significant amount of discussion within various media outlets as to whether or not we are witnessing another bubble. Such discussion is something that should be welcomed.
However, for all the positives within this discourse, the debate continues…
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I had a look this morning at a report from the Economic and Social Research Institute, the independent body that gets paid by the government to do research. The report is titled ‘Bubble, Bubble Toil and Trouble? An Assessment of the Current State of the Irish Housing Market’. (‘With apologies to Mr. William Shakespeare.’ O teh lulz)
I was drawn to the report via a headline in the Irish Times concerning the report ‘ESRI says house prices 27% below real value’. According to the headline, price isn’t an indicator of true value. The true value here, mind you, isn’t the object’s use value as opposed to its exchange value; it’s just the value that the object ought to have if things were different. And things ought to be different, not because I want them to…
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