SAN DIEGO -- America is about to enter a period of robust growth, and the climate for businesses, especially small businesses, will improve.
That is according to Stuart Varney, an economist and business news editor of Cable News Network, who spoke at the Produce Marketing Association's convention and exposition here last week.
Varney said the present and future American economic outlook is much better than many people believe. He pointed to the country's expanding economy, low unemployment rate, steady interest rates and corporate profitability as reasons to be optimistic about the future.
"All that paints a very rosy picture," he said.
Varney blamed the media, and television in particular, for casting a vision of economic gloom and doom. Television reporters have a difficult time conveying complicated business stories because there is no sexy footage or snappy graphics to go with those stories, he said.
"As a television reporter, I must arrest you, grab your attention and compel you to watch my program," he said.
"Television and business news are a bad fit," he said. Stories such as the Gulf War or earthquakes fit television news well, since there is very visual, graphic information available on those events.
"There is not much compelling video on the gross domestic product," he said.
He pointed to the derivatives market as a very important story. However, it doesn't receive much coverage, since derivatives are so complex.
Varney pointed to three other complex, yet important, financial issues that haven't received sufficient television coverage. These issues paint a very positive picture for the American economy, he said.
The first is the state of the American corporation. "There is a strong feeling that our corporations are not doing well," he said. Varney attributed some of that negative impression to the media's fixation on recent and drastic downsizing.
"The drastic job cuts were focused on, and that included focusing on the pain involved," he said.
The media did not focus on how much better corporations were functioning after downsizing. The media also mostly ignored the robust hiring going on with smaller companies.
"It's news when Eastman-Kodak lays off 10,000 people," he said. "It's not news when XYZ Widget hires 20 people."
The second issue some media have handled negatively is the competitiveness of American businesses.
He said reporters tend to focus on the American trade deficit, which is substantial. The media does not focus on net receipts, which is a better indicator of competitiveness.
Globalization of the economy is another issue, he said. "I would say America is the most advanced of global economies," he said.
Varney said some segments of the economy have taken a hit in the global marketplace. However, overall globalization has been a boon for America, he said.
