Welcome to critical economic thinking! Every day, news headlines make bold claims about policies, markets, and economic trends.
But not all economic reporting is created equal. Some articles use solid evidence while others rely on weak data or flawed reasoning.
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What's one economic claim you've seen in recent news that made you curious or skeptical?
Here's your five-question checklist for evaluating economic news: 1) What's the data source? 2) Is correlation confused with causation? 3) Who benefits from this claim? 4) What's missing from the story? 5) Do the numbers make sense?
These questions help you spot weak arguments and biased reporting.
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Which question seems most important to you for catching misleading news?
Question 1: "What's the data source?" Many articles cite "studies show" or "experts say" without naming sources. Strong reporting identifies specific researchers, datasets, or organizations.
Be especially wary of "surveys" without sample sizes or methodology details.
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Why might unnamed sources be a red flag in economic reporting?
Question 2: "Is correlation confused with causation?" Just because two things happen together doesn't mean one caused the other.
"Ice cream sales and drowning deaths both peak in summer" doesn't mean ice cream causes drowning - hot weather explains both.
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Can you name one pair of economic trends that could move together without one causing the other?
Question 3: "Who benefits from this claim?" Follow the money! Articles opposing carbon taxes might quote fossil fuel executives, while articles supporting them might quote renewable energy companies.
Neither perspective is automatically wrong, but understanding incentives helps you evaluate bias.
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