Of course the narrative matters. The developed nations are democracies, and thus power and wealth flows to whomever gets the most votes. And the people vote based on what they know. And since “reality” is over in the Med or Central Asia, it never invades and supersedes the news media. Thus the narrative drives votes, driving power and wealth.

Is this surprising? In the age of Kings the man with the King’s ear had the most power. In the age of democracy the man with the people’s ear has the most power. And since people remember stories better than they remember facts, stories control the ballot box.