Can media lift us out of the gloom?

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So, there’s a lot of fuss about interest rate cuts at the moment and how they’re the key to saving us from the impending depression. It’s impossible to deny – times are certainly tough for many people. Consumers and businesses alike are feeling the pinch and the financial markets are in turmoil. I believe that interest rates do have a vital role to play but they certainly aren’t the “be all and end all”.

An immediate and aggressive cut in interest rates must take place and by at least 0.5%. However, a reduction alone will not solve the problem – far more needs to be done to boost consumer confidence and encourage increased spending. It’s only when people feel that they have more disposable income, that the risk of job losses has lessened, and the cost of living has also fallen, that the economy will truly begin to recover. The government needs to offload the heavy burden of tax on individuals and UK businesses and energy suppliers must immediately pass on any fall in energy costs to the consumer.

The media of course has a huge role to play as it can massively influence how consumers feel. PR agencies and journalists need to stop linking the last few weeks with the 1930s and focus on the positives. After all, an unprecedented amount of liquidity has been injected into the economy and the price of oil is tumbling. In addition, UK exporters face huge increases in the demand for their products as the value of the pound continues to plummet. Business opportunities do exist even when times are tough and PROs should highlight these as much as possible. The sooner that confidence begins to return, the quicker we will lift ourselves out of recession no matter how low interest rates fall.