When it comes to finances, there is nothing more responsible than saving and spending wisely. Avoiding the “microwave mentality” of “I want it and I want it now” is no small feat in today’s culture. For all the hand-wringing over negative savings rates and credit card debt, there was little offered up by the networks in the way of stories dealing with savings and thrift.

     Out of 156 stories or briefs dealing with issues surrounding debt and money, only 22 (14 percent) dealt with savings. CBS had the most stories, with 10. ABC had seven and NBC had five. On CBS (8 out of 10) and ABC (6 out of 7) more of these stories than not promoted savings. On NBC only two out of five promoted thrift.

     NBC showed how on the networks, it often came down to greed. Kerry Sanders used a July 26, 2007, “Nightly News” report to explain how investors had lost nearly everything in the Miami condo market:

“They’re some of the most spectacular views in Miami, but those storm clouds over this city’s condo market are now symbolic of gloomy values ... In some buildings half the units were purchased by investors. Natalie and David Luongo got caught up in the hysteria. In eight months, they pocketed $130,000 flipping an unbuilt condo. But now they’re stuck, three other condos, a quarter million dollars down, closing set for the end of the month.”

     Talking about her “misfortune,” the featured condo flipper Natalie Luongo said:

“It’s very hard to deal with. I mean it’s literally my whole life savings, and it’s going to be now living paycheck to paycheck.”

     In this story there was also talk of “investors squirming out of contracts” and “vulture investors” who pick “at the remains of dead deals.” While one could argue that is a thrifty thing to do, it was painted in a most negative light.

     When the networks tried, they could tell a good savings story. In a two-part series about the high cost of college which aired in February, ABC’s “World News with Charles Gibson” highlighted “529” savings plans that help people save for a child’s college education. An ABC poll revealed that fewer than 10 percent of parents had opened such a plan, and nearly two-thirds of parents had never heard of them.

     In reporting on the 529 plan, ABC’s John Berman profiled parents of young children who were already preparing to save for their children’s college educations. Berman was sure to mention in the story that the plans were good for low- and middle-income families, telling viewers saving was something everyone could do if they so chose.

     While over-spending caused problems for consumers, even not spending was treated as scary – maybe even detrimental – by the networks. In some stock market reports, which had good news, the specter of savings loomed large.

     In mid-August, while the financial markets were riding a veritable roller coaster, reporters seemed to twist and turn about what the consumer should or shouldn’t do. On Aug. 10, 2007, the morning the Fed surprised Wall Street with an infusion of $38 billion, CBS’s Kelly Wallace asked experts about the effects the subprime mortgage problems were having on Wall Street’s performance.

     One of those experts, Nicole Ridgeway from Smartmoney.com, told viewers that the days of zero-percent-down mortgages were over. Wallace then asked, “The key is, how will consumers, the backbone of the economy, react?” Ridgeway replied, “That is a big fear here, is that consumers will sort of say, ‘Whoa, I’m not going shopping today.’ Like, ‘I don’t need these things.’ And going back to the basics and really trying to hang onto their money.”

     Note that cutting back on spending and saving money was described as a “fear” by the expert CBS chose to include in the story. The network didn’t try to decide if it were an act of responsible financial management.

     A similar theme showed up on the “Nightly News” on Aug. 16, 2007. CNBC’s Bartiromo told anchor Brian Williams that there was good news at the closing bell on Wall Street. But, she warned, “We are not out of the woods yet.” Bartiromo described the dangers the market faced – especially from consumers. “And of course the next piece of the puzzle to watch is the consumer. Are we going to see the consumer pull in their spending the way they’ve rolled over in housing and slow the economy that much further? That’s what we’re watching next to see if in fact the comeback tonight has legs.”

     Both networks suggested that consumers were doing something bad by spending less. What’s a consumer to do? There’s a double standard. Reports about negative savings rates – spending more than you earn – served to scold Americans addicted to credit, but other stories said Americans who tried to live within their means were imperiling the national economy.

     Dr. Gary Wolfram, a professor at Hillsdale College and an adviser to the Business & Media Institute, explained that the idea promoted by the media—that the economy will be harmed by slower consumer spending—comes from demand-side economic theory, rather than supply-side. He explained why a decline in consumption is not likely to negatively impact the overall economy:

     “People become more productive when they are better educated and have better technology. So by increasing savings we increase the availability of resources to make capital goods [buildings, inventory, education], which make us more productive in the future,” said Wolfram.

     When people stop consuming, they put money in the bank, which loans the money to businesses for capital improvements. In the end, that increases overall productivity and benefits the economy, explained Wolfram.

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Executive Summary