Beware the adjectives
Posted by Jason Apollo Voss on Dec 11, 2009 in Best of the Blog, Blog | 9 commentsAnother Friday, another retail sales report, and another exaggeration from the Wall Street Journal. Beware the adjectives.
Here are the facts about retail sales for the month of November…
The Commerce Department reported that U.S. retail sales were up 1.3% in November. This figure was twice what economists had been expecting. Further, the 1.3% rise compares to a (revised down to) 1.1% increase in October (from an initial up 1.4% reading).
Here is how the Wall Street Journal described their story:
“U.S. retail sales rose 1.3% in November, making a broad-based increase that suggested consumers were buying aggressively and supporting the economy.”
Don’t get me wrong, I am glad that retail sales are up. However, I strongly object to the language used by the Wall Street Journal to “report” this fact. First of all, how can a 1.3% increase ever be considered aggressive? Especially when in October a previous 1.4% increase was revised down to a 1.1% increase? If you receive a 1.3% annual salary increase at work, would you consider that aggressive on the part of your employer? Furthermore, how can it be said that “consumers [are]…supporting the economy?” The implication is that folks are out there buying as an act of public welfare or something. To me it seems obvious that the audience for that story is investors (small letter ‘i’). The tagline for the article could be rewritten as:
“U.S. retail sales rose 1.3% in November, making an amazing increase that means consumers have returned to spending aggressively and are now the backbone of a big economic recovery. Buy!” While it may seem that I am exaggerating here, I am not. Professional speculators – that is, momentum traders – read between the lines of these stories and they love adjectives. Adjectives let them know how they can manipulate the markets today. That’s why I hate reporting that is really boosterism.
I insist that we focus on the 1.3% increase. I also insist that we recognize that this is not aggressive spending on the part of consumers. I insist that we also acknowledge that we hold out for the possibility this data may be revised downwards (or upwards). I insist that we not get stupid crazy excited about a 1.3% increase in anything.
Beware the adjective!
Jason
Love all the opinions expressed here! How is everyone? Love how everyone expresses whatr they feel 🙂
Thank you for the comment. I hope that you continue to enjoy the blog and that you become a loyal reader. Jason
Very nice info, keep up the good work.
Thank you and I intend to. Jason
Fascinating piece. I came across your site while searching for articles dealing with public welfare. I know I’m a little late in posting my comment but the article made a lot of sense and I enjoyed it. I can’t say that I agree with all the points you made but it was decidedly enlightening! I run a small US company that manufactures a line of collectible political gifts that commemorate the great leaders, speeches and events of American politics. I’m trying to create American jobs so I hope you don’t mind me including my link in this post. I’m always looking to promote our American made products and I still believe America just keeps getting better and better in spite of our current difficulties. I’m not sure if my earlier post was received so I’m trying again. BTW… I’m a returning visitor to your blog and will be back soon. Thanks again for a great article and your positive mentioning of a great leader like Reagan!
Hello Bill. Thank you very much for the kind words. I am happy to let in the plug for your business in exchange for you giving me free advertising, too. Tell your pals about the site. As for R. Reagan, I was unaware that I had positively mentioned Reagan on the blog. My usual opinion of politicians is cast within an investment and geopolitical context. For example, much as I like Barack Obama as a human being, I’m not so sure that he is a good President for either business or for geopolitics. Reagan’s massive increase in military spending increased the size of the debt in the U.S. to such a degree that many generations from now we will still be paying off the debt as a nation. That is selling forward our national security and a very short-term focus. But I could go on about most presidents in a similar fashion. At least Bill Clinton could balance a budget.
HELP! I’m currently being held prisoner by the Russian mafia and being forced to post spam comments on blogs! If you don’t approve this they will kill me. They’re coming back now. Please send help! Jusy kidding! I love politics and this was a good article!
Usefull ideas, though i’m not entirely certain i approve.
Your approval is very, very, very, very, very important to me. Jason