Stock Market Opens Lower After Obama Accused of Marxism!
After Barack Obama was accused of Marxism and socialism this weekend, the Dow Jones Industrials Average has opened sharply lower. Well, it’s true. Barack Obama was accused of being a Marxist this weekend. Also, the DJIA has opened lower.
Does that mean that there’s a connection? It’s doubtful. Still, given the headline I’ve placed on the article, many people will assume that’s the argument I’m making. People have a way of confusing coincidence with causality.
The journalists at USA Today ought to be familiar with that tendency, especially when it launches articles with headlines like the one from this morning: Stocks look lower after automaker plans are rejected.
Does anyone at USA Today have any way of knowing whether the ouster of the CEO of General Motors is a significant cause of the stock market slippage this morning? No, but their headline suggests to most readers that such a link exists.
It’s bad enough that business journalists follow the Dow Jones Industrials Average as if it is a general economic indicator. If they’re going to make that mistake, the least they could do would be to stop pretending that they know why the price of the stocks in that index are really going up or down at any particular time.