Dan Arps The Downward Spiral

downward demand spiral

Flooding the media landscape with their own political messages allows those in power to dominate the political agenda, divert public discussion away from sensitive issues, and ultimately control and manipulate the public sphere. Similarly, Serbia has also undermined press freedom through politicized manipulation of the law. Defamation has been decriminalized, and the country’s media laws are otherwise in line with international obligations. But politicians have continued to file costly defamation suits seeking exorbitant civil damages.

  • The application of financial and economic pressure is an effective means for co-opting outlets.
  • Based in the United States and founded by practitioners of the Falun Gong spiritual group, which is banned in China, the station broadcasts uncensored news about rights abuses and corruption in China, among other debate-based and cultural programming.
  • The rising cost of coverage is particularly burdensome for lower-income workers.
  • Instead, the media have fallen prey to more nuanced efforts to throttle their independence.
  • The majority of states have enacted laws to promote small firms’ access to small group health insurance coverage.

Put another way, over the past decade promotions have been in a “discount death spiral,” requiring ever deeper discount levels to maintain the same effectiveness. Left unchecked, this is likely downward demand spiral to continue until it envelopes the entire CPG industry. 9 Distinguish absorption from variable costing; prepare and explain the differences in operating income under each costing policy.

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When the demand for profit growth exceeds sales growth, or if sales growth does not sustain profit targets, then it’s highly likely that choices will be made to bolster short-term profit at the expense of long-term brand health and relationship with target customers. In light of these and other problems, the technology sector does need greater regulation. But defenders of democracy should be wary of any push for state regulation that aims to define acceptable and unacceptable speech and entails a reduction in freedom of expression. It is instructive that the very governments most guilty of pumping out misleading propaganda and surreptitiously manipulating social media through paid trolls and automated “bot” accounts are often the ones that propose to solve the problem by restricting civil liberties. The best remedy for bad or erroneous speech remains more and better speech, not enforced silence.

downward demand spiral

While the impact of these efforts was limited, they reflect willingness by Chinese state media to use established avenues of content dissemination in an effort to influence American voters. The CCP executes a variety of strategies that undermine fair competition between state-owned or friendly news outlets and critical ones, often reducing the latter’s financial viability. Chinese state media publications distributed in other countries routinely omit any mention of government links that would signal their origin to uninitiated news consumers.

Implications for Democratic Governance and Media Freedom Globally

Low income in this analysis was defined as less than 200 percent of the FPL. TRICARE is a health benefits program sponsored by the Department of Defense for military retirees and families of active duty, retired, and deceased service members. CHAMPVA refers to the Civilian Health and Medical Program for the Department of Veterans Affairs, a program for disabled dependents of veterans and certain survivors of veterans. As shown in Figure 2-3, the average annual single and family premiums for an employer-sponsored plan more than doubled from 1999 to 2008 (Kaiser Family Foundation and Health Research & Educational Trust, 2008a). Premiums for single individuals increased from $2,196 in 1999 to $4,704 in 2008, while family premiums increased from $5,791 in 1999 to $12,680 in 2008. Keynesian economics comprise a theory of total spending in the economy and its effects on output and inflation, as developed by John Maynard Keynes.

downward demand spiral

If a label does persistently come to mind about a particular subordinate, the leader should fight her natural inclination to process information in a way that supports her initial observations. She should give due consideration to situational factors when trying to understand behavior or outcomes, especially for supposedly weaker performers. But when it comes to establishing strong relationships with your new direct reports, our research finds the window to be much narrower.


Politicians who choose to use WeChat to communicate with constituents should monitor messaging closely to detect any manipulations, register accounts with international phone numbers when possible, and republish messages on parallel international social media platforms. Foreign governments should adopt or enforce policies that enhance publicly available information about Chinese media influence activities in their countries. This could include reporting requirements for spending on paid advertorials, ownership structures, and other economic ties to Chinese government actors. In the United States, the Department of Justice should expand recent such requests to CGTN and Xinhua to other state-media or linked outlets, especially the Chinese-language CCTV.

What is a downward demand spiral?

What is a Downward Demand Spiral? A downward demand spiral occurs when a business eliminates products without sufficiently reducing the overhead costs associated with them. When this happens, overhead is allocated across the fewer remaining products, which increases their cost per unit.

The plant is expected to run every day but was only able to operate for 27 days in September. Printed Matter’s online catalog is one of the largest and most comprehensive databases of artists’ books and related publications. The catalog contains records for approximately 45,000 titles, which includes inventory currently in stock and available for sale, as well as an archive of titles previously stocked. Some people claim that once minorities move in, the neighborhood starts to deteriorate. Beth is the Executive Chair, Chief of Product, and Co-Founder of unspun, a fashion-technology startup focused on sustainable, on-demand production, and inclusivity.

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In early 2018, for example, minister without portfolio Nenad Popović sued the investigative portal KRIK in four separate lawsuits in the space of one month, for 1 million dinars ($9,500) each. An even more worrying form of financial pressure in Serbia is the harassment of media by the tax authorities. In 2017, the weeklyVrjanske novinereceived daily visits, which coincided with its publication of an interview with a former head of the tax authority; its owner ultimately announced that the paper could no longer withstand the pressure, and it ceased operations. In 2018, the news site Juzne Vesti, known for its critical reporting in the south of Serbia, was subjected to its fifth months-long tax investigation in five years. The illiberal toolbox is particularly effective because it exploits the weaknesses of today’s media environment, including the decline of trust in the press, and the crisis of the old business model. It takes place gradually and stealthily, and after a point it is difficult to reverse.

What are death spirals in economics?

Death spiral debt refers to debt that can be converted to common shares, increasing the number of common shares and diluting the stock price of those shares.

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