Economy Predictions: How Lipstick Effect and Men’s Underwear Can Predict Economical Condition?
Economy Predictions: Economists throughout the world consider a variety of factors when making predictions, such as unemployment, interest rates, inflation, interest rates, taxation, and exchange rates, in order to provide a correct and accurate estimate. However, there is an interesting twist in recognising the economic condition of a country. The economy can also be estimated from things like men’s underwear and women’s lipstick. Yes, you read it right. Economists can predict whether the economy is stable or in recession by the Men’s Underwear Index and Lipstick Effect as these are considered as basic luxurious needs of a human being.
Lipstick Effect
When customers continue to spend money on small luxuries throughout recessions, economic downturns, or when they individually have little income, this is known as the lipstick effect. Even if they do not have enough money to spend on expensive luxury things, many people may afford to buy minor luxury items such as lipstick. Consumers who are pressed for cash want to treat themselves to something that would allow them to forget about their financial issues. The Men’s Underwear Theory, on the other hand, contends that when the economy deteriorates, men will stop purchasing new underwear since it is a garment worn beneath the garments and is not seen on a daily basis. When the economy recovers, they’ll begin buying boxers or briefs again.
