The media aren't the only ones shortsighted like that.
Take the insurance industry. A key factor in setting the rates we pay is loss ratios--how much premium they collect vs how much they pay out in claims. I forget what the "standard" is supposed to be. Maybe 70% or so? For every $10 you collect in premium, $7 goes out to pay claims. Of course, for publicly traded companies they want to lower that number.
Anyway, this is linked to sales. If your sales fall, the amount of premium you collect will fall as well (because people switch away all the time, so you need new blood). Claims stay pretty steady, though. So if you're only collecting $7 now, but still paying $7, now your loss ratio is 100%! What do you think the smart option would be? Obviously, lower your prices so that you'll increase sales and pull in more premium. What do they do instead? They RAISE prices!! "Let's charge more!" Sure, that works in theory. They get more premium from existing customers, losses stay the same, back in the black.
What do you do when your insurance company sends you a notice they're raising your rates? You start shopping around! They not only have sales fall more, but they lose more customers. Premium falls MORE, losses only fall a little (because just one person's claim will equal the premium for a year from 10-100 people), your loss ratio INCREASES!!! So they do it AGAIN!!
It's amazing to me how they can stay in business sometimes being so dense.
The media reports on things to the world that few know about. They're just as dense. We may get they're wrong, but no one has a platform to call them on it and the public at large believes it.