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

We thus come across two interesting indicators that can predict economic recessions and crises. Indexes for lipstick and men’s underwear! “How?” If you say so, let’s get started. Because maybe your lipstick or laundry drawer tells you more than you think!

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

By Leonard Lauder, the then manager of the famous cosmetics company Estee Lauder. 2001 crisis The lipstick index, presented 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 were increasing despite the poor economic conditions, reported this interesting situation. “lipstick effect” he mentions 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 they feel good about and that are relatively cheaper. to little luxury 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.

Consumers can therefore spend relatively less time and avoid larger expenses. tend to spoil themselves with small gifts situation that occurs during periods of economic recession With the increase in lipstick sales It shows itself.

What about the men’s underwear index? Here we have a situation that is opposite to the lipstick index.

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

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

The basic logic is to check the condition of men’s underwear among their clothes. one of the least visible parts It is based on the fact that due to its nature it does not matter much.

Popularized by former Federal Reserve Chairman Alan Greenspan!

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

But if the economy gets worse, guys postpones the purchase of underwear. Because they don’t care about the condition of their underwear, the least noticeable part of their clothing, they prefer to use their existing underwear for a while.

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

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

In other words, your Morning Star boxers that are torn left and right. If you don’t really careThis “because you don’t care” This may not be the result of an economic recession. At least according to Alan Greenspan…

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