Claeys: Economic indicators for the average American
By Jesse Claeysjclaeys@siouxcityjournal.com | Posted: Friday, October 10, 2008
This is not a column about the economy.
This is a column about beer, lipstick, movies, luggage and gold.
OK, this column is about the economy, but it is about the odd ways the quirky people among us have found to judge its condition.
Let's call them economic indicators from the average American.
LIPSTICK INDEX
Leonard Lauder, chairman of cosmetics industry giant Estee Lauder, is said to have coined this phrase. The Lipstick Index is an indication of the current state of the economy. The theory is that when consumers face uncertain and threatening financial futures, they turn to inexpensive indulgences, i.e. a $12 tube instead of a $200 pair of heels. His company noticed that during economic downturns the sales of lipstick went up. During the 2001 recession, makeup sales jumped 23 percent. So far this year sales are up 4 percent, according to market research firm Information Resources Inc.
LUGGAGE INDEX
"When you ain't got no money, you ain't going nowhere," one blue-haired lady recently reasoned with me. She was right. While current statistics are not available, global financial services firm Merrill Lynch reported luggage sales had fallen for two straight months this summer, dropping nearly 35 percent, and the trend looked to continue.
SIX-PACK INDEX
Hard economic times do not necessarily equal empty bar stools. People still drink, but the locales may change. We drink at home, go out less. According to the Iowa Alcoholic Beverages Division, beer and liquor sales have grown by 1.8 and 3.7 percent, respectively, this year. The relatively inexpensive brands of vodka, Hawkeye and Five O'Clock, are currently among the Top 5 best-selling spirits in the Hawkeye State.
SHOWTIME INDEX
The idea here is that when reality is troublesome, we need to escape from it. How? We go to the movies. The National Association of Theatre Owners reported that already this year 21 films have grossed between $50 million and $100 million, compared with 23 in all of 2007. The trade organization also said movie attendance increased during five of the last seven economic recessions. Industrywide, box office receipts totalled almost $6.9 billion as of last weekend.
UNDER-YOUR-MATTRESS INDEX
When it seems like there are few safe places to put our money, we opt for something considered a safe bet. Some may stuff wads of cash in household hiding spots, others head for more alluring security. Gold, that is -- the modern day cash under the mattress. Gold prices approached $900 this week. On Monday the price of an ounce shot up $33. The gold rush is so intense that the U.S. Mint had to suspend sales of the American Buffalo coin after selling 164,000, a 54 percent increase from last year.
What does all this mean? It means that if, in the near future, your next date is with a glossy-lipped lady who wants to see a movie and then have drinks at your place, things are not as good as they seem. This is especially true if you plan to foot the bill using gold bullion.
This is a column about beer, lipstick, movies, luggage and gold.
OK, this column is about the economy, but it is about the odd ways the quirky people among us have found to judge its condition.
Let's call them economic indicators from the average American.
LIPSTICK INDEX
Leonard Lauder, chairman of cosmetics industry giant Estee Lauder, is said to have coined this phrase. The Lipstick Index is an indication of the current state of the economy. The theory is that when consumers face uncertain and threatening financial futures, they turn to inexpensive indulgences, i.e. a $12 tube instead of a $200 pair of heels. His company noticed that during economic downturns the sales of lipstick went up. During the 2001 recession, makeup sales jumped 23 percent. So far this year sales are up 4 percent, according to market research firm Information Resources Inc.
LUGGAGE INDEX
"When you ain't got no money, you ain't going nowhere," one blue-haired lady recently reasoned with me. She was right. While current statistics are not available, global financial services firm Merrill Lynch reported luggage sales had fallen for two straight months this summer, dropping nearly 35 percent, and the trend looked to continue.
SIX-PACK INDEX
Hard economic times do not necessarily equal empty bar stools. People still drink, but the locales may change. We drink at home, go out less. According to the Iowa Alcoholic Beverages Division, beer and liquor sales have grown by 1.8 and 3.7 percent, respectively, this year. The relatively inexpensive brands of vodka, Hawkeye and Five O'Clock, are currently among the Top 5 best-selling spirits in the Hawkeye State.
SHOWTIME INDEX
The idea here is that when reality is troublesome, we need to escape from it. How? We go to the movies. The National Association of Theatre Owners reported that already this year 21 films have grossed between $50 million and $100 million, compared with 23 in all of 2007. The trade organization also said movie attendance increased during five of the last seven economic recessions. Industrywide, box office receipts totalled almost $6.9 billion as of last weekend.
UNDER-YOUR-MATTRESS INDEX
When it seems like there are few safe places to put our money, we opt for something considered a safe bet. Some may stuff wads of cash in household hiding spots, others head for more alluring security. Gold, that is -- the modern day cash under the mattress. Gold prices approached $900 this week. On Monday the price of an ounce shot up $33. The gold rush is so intense that the U.S. Mint had to suspend sales of the American Buffalo coin after selling 164,000, a 54 percent increase from last year.
What does all this mean? It means that if, in the near future, your next date is with a glossy-lipped lady who wants to see a movie and then have drinks at your place, things are not as good as they seem. This is especially true if you plan to foot the bill using gold bullion.
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bloozman wrote on Oct 10, 2008 8:48 AM:
mrdwhsr wrote on Oct 10, 2008 8:44 AM: