Lipstick and Men’s Underwear Index Focusing on Economic Crises

It may seem strange, but some economists use creative methods, It allows us to read the economy through such unusual products.

Thus, we encounter two interesting indicators that can predict economic recessions and crises. Lipstick and men’s underwear indexes! “How?” If you said so, let’s start. Because your lipstick or laundry drawer may tell you more than you think!

Let’s start with the lipstick effect. According to this index, an extraordinary movement is observed in lipstick sales during recessionary periods.

By Leonard Lauder, the then manager of the famous cosmetics company Estee Lauder. 2001 crisis The lipstick index, which was put forward during the period, shows that lipstick sales increase during economic stagnation and crisis periods. has increased based on observation.

Lauder, who noticed that lipstick sales increased despite the bad conditions of the economy, reported this interesting situation. “lipstick effect” he calls it.

The basic idea of ​​the lipstick effect is that in economically difficult times, people avoid buying more expensive luxury goods, but choose products that make them feel good and are relatively cheaper. to little luxuries They can direct.

This means that affordable cosmetic products such as lipstick can lead to larger and more expensive expenses. is preferred as an alternative.

Thus, consumers can spend relatively less time while avoiding larger expenditures. tend to pamper themselves with small gifts situation, which occurs during periods of economic recession With the increase in lipstick sales It shows itself.

What about the men’s underwear index? Here, there is a situation opposite to the lipstick index.

Like the lipstick effect, the men’s underwear index predicting the economic situation and measuring behavior and an interesting and yet simple indicator used.

This index reflects the general economic situation by tracking changes in men’s underwear sales. predictions aims to do.

Its basic logic is to check the condition of men’s underwear among their clothes. one of the least visible parts It’s based on the fact that it doesn’t matter much because of its nature.

Popularized by former Federal Reserve Chairman Alan Greenspan!

According to this indicator, when the economy is good, men are more likely to She regularly buys underwear. Because they generally see underwear spending as a small expense that can be ignored.

But when the economy gets worse, men postpones underwear purchase. Because they do not care about the condition of their underwear, which is the least noticeable part of their clothing, and they prefer to use their existing underwear for a while longer.

In other words, they prefer to spend money on underwear that no one will see except themselves or people they are very close to. They find it unnecessary.

Based on this, the men’s underwear index is: The decline in men’s underwear sales indicates an economic recession states.

In other words, your Morning Star boxers that are torn left and right. If you don’t care that muchThis “because you don’t care” It may not be due to economic recession. At least according to Alan Greenspan…

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