Sensationalism vs. Reality

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Sensationalism tends to be a romanticized version of reality, life, politics, what have you. We tend to add meaning, be it positive or negative, to an occurrence, situation, scenario, story and so fourth, in order to make it relatable and larger than life for the listener, reader or viewer. Reality is a much harsher, raw version of our environment and frequently something that people do not want to hear, especially if it does not help their current situation. So when it is appropriate to use sensationalism and when is it appropriate to use realism?