CNN Effect - Explained
What is the CNN Effect?
Written by J. Mance Gordon
Updated at April 23rd, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is the CNN Effect?
The CNN effect describes the influence that media outlets, especially CNN has on the government and economic policies. The CNN is at the center of the CNN effect, this media network runs a 24-hour news chain that has significant effects on political governance, business, economy, and others. The CNN coverage of crucial subject matters attracts the attention of stakeholders, individuals, and organizations to the extent of making policies around the reported subject matter. There are several other media outlets that operate like the CNN these media outlets provide reportage of events in the society, thereby drawing the attention of government and policy-makers to certain subject matters they would have otherwise not pay attention to.
Why is the CNN Effect Important?
The type of coverage given to a particular matter by media outlets determines the type of reaction that will follow. The CNN effect is a phenomenon that affects different industries, sectors, and organizations. For instance, investors in the market might make decisions based on how a particular market incident is reported, this is known as the CNN effect. There are many benefits of the CNN effect in the society, this includes accountabiity on the part of the government and policymakers. The CNN effect also facilitates government intervention in subject matters they might not have interest in ordinarily. Examples of such subject matters are humanitarian crises, natural disasters, environmental disorders, among others.
The CNN Effect Post-Television
Ultimately, the CNN effect is about how the activities of media outlets shed light on different subject matters in business, governance, and other sectors that might hitherto not be known if not reported. This theory became popular in the 1980s, it examines the spread of information and its connection to the activities and reportage by media outlets such as CNN. The media outlets brought crucial matters that otherwise would not have been known to the fore. The cable news played a crucial to the spread of information and events, as more people had access to news and information. In recent times. The social media coupled with the advent of new technologies have overtaken the formerly fast cable news. Oftentimes, media outlets now depend on social media o have a grasp of happenings in different parts of the world. Regardless of this fact, the CNN effect is a theory that believes that the activities or event coverage by media outlets have significant impacts on consumers. The reportage around a subject matter tells on consumer behaviors as well as policies that will be made.
Related Topics
- What is Government Spending?
- Autonomous Spending
- Autonomous Consumption
- Fiscal Policy
- Expansionary Fiscal Policy
- Contractionary Fiscal Policy
- Progressive vs Regressive Tax
- Marginal Tax Rates
- Proportional Tax
- Trickle Down Theory
- Discretionary Fiscal Policy
- Automatic Stabilizers
- Effects of Discretionary Policy (Interest Rates & Lags)
- Crowding Out Effect
- National Debt
- Government Borrowing
- Golden Rule
- Ricardian Equivalence
- Balanced Budget - Deficit and Surplus
- National Debt
- Standardized Employment Budget
- Deficit Hawk
- Austerity
- Twin Deficits
- Fiscal Policy and the Aggregate Supply and Demand Curve
- Stabilization Policy
- Robin Hood Effect
- Ricardo Barro Effect
- Automatic Stabilizers
- Standardized Employment Budget
- How Does Fiscal Policy Affect Interest Rates?
- Crowding Out
- Types of Lag in Fiscal Policy
- Temporary and Permanent Fiscal Policy
- Limitations of Fiscal Policy?
- How Politics Affects Discretionary Fiscal Policy
- Government Borrowing
- National Savings and Investment Identity
- Debtor Nation
- Fiscal Policy Affects Trade Balances
- Twin Deficits
- Exchange Rates Affect Budget and Trade Deficits
- What are the risks of chronic large deficits in the United States?
- How Fiscal Policy Can Affect Trade Imbalances
- Government Borrowing Affect Private Savings
- Ricardian Equivalence
- Fiscal Policy Affects Investment and Economic Growth
- Crowding Out of Physical Capital Investment?
- How Does Government Borrowing Affect Interest Rates in Financial Markets?
- Government Investment in Physical Capital
- Public Investment in Human Capital
- Fiscal Policy Can Affect Technology Development
- Economic Cycle or Business Cycle
- Business Cycle Indicator
- Peak and Trough
- Recession and Depression
- Hard Landing vs Soft Landing
- Economic Bubble
- Boom and Bust Cycle
- Great Depression
- Baby Boomer Age Wave Theory
- Skyscrapper Effect (Economics)
- V-Shaped Recovery
- W-Shaped Recovery
- U-Shaped Recovery
- Kondratieff Wave Cycle
- Contagion
- Feedback Rule Policy
- American Customer Satisfaction Index
- CNN Effect
- Bureau of Economic Analysis
- Business Starts Index
- American Recover and Reinvestment Act
- Abenomics
- Emergency Economic Stabilization Act of 2008
- Commodity Credit Corporation
- Humphrey Hawkins Act
- Stagnation
- Neoclassical Growth Theory
- Exogenous Growth Theory
- Endogenous Growth Theory
- New Growth Theory - Explained
- Classical Growth Theory - Explained
- Real Economic Growth Rate - Explained
- Plutonomy