Topic

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1246

Introduction

This paper will analyse news article contents addressing the same issue about government-business relationship. An article addressing the same issue will be drawn from two distinct news media websites. The analysis will be based on what the article talks about, who it is written for, the publisher, the underlying assumptions/values and/or ideologies in the article. Lastly, a justification for choosing the specific article shall be provided.

What is the article about? What is it overtly/covertly suggesting?

There has been a perceived threat especially by economists to the economy of Australia owing to increasing household debt. The Guardian (2017) article on ‘Australia’s record household debt a threat to economy, says Reserve Bank chief,’ has illustrated the manner in which a decline in spending owing to the household debt levels is particularly going to hurt the nation’s economy in the event that individuals decide not to borrow and cut on consumption. Employment will adversely be affected then. The article further notes the country’s low wages growth which is said to have bottomed, indicating another reason for individuals to go slow on spending. Subsequently, appreciation for international trade’s positive contribution to the country’s economy has been noted. The ABC (2014) article also quotes household reduced spending as posing a risk to the country’s economy. This article however, highlights that available home loan products to individuals are the ones creating financial risks to them, claiming that Australians owe to banks and other lenders over $1.8 trillion also noted as the highest level of inflation witnessed since 1988. The article has simplified the arguments by comparing the household debt as 1.8 times the household disposable income. Conclusively, both articles from the two news media are talking about the risk of household debt to the nation’s economy. However, ABC has provided a detailed and an easily understandable article through comparisons of economy historically and to date. On the other hand, the article by The Guardian has only quoted concerns made by Reserve Bank chief without detailed information or rather comparison of Australia’s economy with other developed nations like the US.

Who is it written by/for? (Why might this be significant?)


News articles are meant for an array audience in respect to the topic under discussion. In this case, the article from ABC is directed to the government, investors and the citizens as well. The importance of the article’s content to the government would be to inform on current condition and future postulations so that the government/policy makers may be well informed while forming and regulating policy especially with regard to interests on borrowing and the setting up of minimum wages for workers of the nation. The citizens upon getting this information should be able to seek financial counsel from their financial institutions on their spending, whereas investors may upon getting this information choose to shy away from investing in the country or, invest and help save the nation from the national debt it may be falling into. The Guardian (2017) article on the other end seems to be directed to its customers and offering them advice on spending. The information may also be useful to policy makers. In conclusion, comparative details of the economy provided by ABC’s article are very informative for policy makers than the information provided by The Guardian article even though they both emphasize the risk of national debt.Who is the publisher? (Why might this be significant?)

The article on ‘Household debt the big threat to Australian economy’ was published by ABC News while the one on ‘Australia’s record household debt a threat to economy, says Reserve Bank chief,’ was published by The Guardian. Some publishers are more appreciated by various audiences due to quality of content.

What are some of the underlying assumptions, values, and ideologies found in the article?

When writing articles under any discipline or topic, the author is usually guided by certain values, assumptions and ideologies. For the ABC (2014) article, the author seems to have been guided by the values of consumer welfare and government regulation on economic matters. Underlying assumptions include regulation of the country’s economy, a fear for sky-rocketed inflation rate, and perceived injurious home loans for individuals. The key ideology likely guiding the author of the article is revenue generation via taxation, housing and property investment, which are all threatened owing to the staggering economy due to household debt. The Guardian (2017) article illustrates values of consumer protection in its article. An underlying ideology here is the better economic status for the Australians unfortunately seeming to be going down as indicated in the article. A belief that the economy of the country can be better than it is if control measures are applied is the underlying assumption for this article. Perhaps, it can be concluded that in both media news centres, the authors of the article have a similar underlying assumption and value that the government can save the situation by focusing more on growth of jobs, incomes, living standards, wealth and prosperity, than productivity (Lombardi et al, 2017)
.Why did you choose this article? What unit-related concepts does this article demonstrate?

A lot of business related matters have been captured in the articles relating to growth patterns of the Australian nation. For instance, the article by ABC (2014) has extensively discussed the debt value by the citizens to banks and other lenders and compared the nation’s financial debt against other developed nations globally. Rates of the financial debt over time in the country have been discussed, for instance, at a rate 2% annually, household debt is said to have grown when global crisis began and raised to 10% p.a between 2002 and 2007. Interest rates have also been underscored. Also, to validate the quality of the article’s content, contributions from several economists have been incorporated. For the article by The Guardian (2017), even though the author has not focused on past economic growth rate but just on what is expected in the future, postulated growth rate for the next two years of up to 3% is mentioned as well as inflation expected to rise to 2%. This author by way of presentation, shows some positivity in the improvement of the nation’s economy despite the fact that there is an inevitable risk of household debt affecting the economy. The article may not have utilized contributions from various economists to draw its arguments, but has factored in the importance of international trade in the nation’s economy. Conclusively, both news media have content rich in business matters.

References

The Australian Business Review. (2015). The ugly truth about Australia’s economy. Retrieved from http://www.theaustralian.com.au/business/business-spectator/the-ugly-truth-about-australias-economy/news-story/b63083c4b0baa540cd648e200579f5c4 , on March 19th 2017

ABC News. (2014). Household debt the big threat to Australia’ economy. Retrieved from http://www.abc.net.au/news/2014-05-07/household-debt-the-big-threat-to-australian-economy/5435844 , on March 19th 2017

The Guardian. (2017). Australia’s record household debt a threat to economy, says Reserve Bank chief. Retrieved from https://www.theguardian.com/business/2017/feb/22/australias-record-household-debt-a-threat-to-economy-says-reserve-bank-chief , on March 19th 2017

Wilkins, R. K. (Ed.). (2014). Families, Incomes and Jobs: A Statistical Report on Waves 1 to 11 of the Household Income and Labour Dynamics in Australia Survey. Melbourne Institute of Applied Economic and Social Research.

Lombardi, M. J., Mohanty, M. S., & Shim, I. (2017). The real effects of household debt in the short and long run.

Estrada, Á., Garrote, D., Valdeolivas, E., & Vallés, J. (2014). Household debt and uncertainty: Private consumption after the Great Recession.

Atalay, K., Barrett, G., Edwards, R., & Yu, C. (2016). Household Indebtedness and Housing Prices in Australia (No. 2016-18).

Collins, M. (2017). A massive understatement about Australia’s economic outlook. Equity31(1), 6.