Show Me the Money: Writing Business and Economics Stories for Mass Communication

By Chris Roush | Go to book overview

3

The Economy and Business

COMPANIES DRIVE LOCAL AND NATIONAL
ECONOMIES

The economy of any town, city, county, state, or country can seem to be a nebulous concept for a reporter to grasp. What exactly makes an economy? An economy can be defined as the activities surrounding the production and distribution of goods and services for consumption in a region. Those activities include paying workers to manufacture products that are then sold. The money paid to those employees goes to work in the region as they purchase other goods and services to live. Economies can grow, and they can contract. If a country or region's economy is growing, that means that jobs are being created. For a business reporter interested in the economy, a story could be written about what kind of jobs are available, for what pay, and in what industries. The converse is also true. When the economy starts to slow down, or decline, that means that there is not as much demand for a company's goods and services as there was in the past. When companies are faced with such an economic slowdown, they are often forced to lay off or fire workers.

Companies—public and private, large and small—will increase or decrease their capital expenditures on the basis of where they believe the national or regional

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