Lipstick as economic indicator
After the terrorist attacks of 2001 deflated the economy, companies were selling more lipstick than usual. Lipstick purchases are a way to gauge the economy. When it's shaky, sales increase as women boost their mood with inexpensive lipstick purchases instead of $500 slingbacks. According to figures from Kline & Company, a market-research firm, lipstick sales across the board fell 5.8 percent during 2008, while liquid foundation sales have grown 2.5 percent. The logic behind the Lipstick Index makes sense. When the economy is a worry, and unemployment is high, people downgrade their purchases, from expensive brands to cheaper ones, or luxury products to generic. Small indulgences substitute for bigger items we can't afford, and we engage in purchasing behaviors that boost our morale: we get a new haircut, go to a movie that takes our mind off our tanking 401(k)s, maybe mix up a tall (and heavy) cocktail to make us forget there's a recession at all. But on its own, the Lipstick Index is superficial, trivial—and frankly, just not believable. Sure, persuading women to look their best as the world crashes around them might have worked 70 years ago, when, during World War II, cosmetics company Tangee touted lipstick as a way for women to "put on a brave face" and cosmetics sales increased 25 percent.
The Hemline Index
The hemline index stands for professor Taylor’s observation that hemlines on women’s dresses rise along with stock prices. Or in other words – as the economy gets better women get shorter and shorter skirts – topping with the miniskirt. When the economy gets worse they tend to wear longer skirts.
If we look at the economy in the 20th century we see that the Hemline Index has proven itself as an economic indicator.
1920s -The twenties saw the highest stock prices in the early 19 hundreds until 1929. It was also a time of very shirt skirts.
1930s – The Great Depression era meant the worst economic conditions in America during the last 100 years. It also saw very long conservative skirts that went all the way to the ground.
1940s and 1950s – The forties and fifties was a time where the people and economy were recovering from World War II. While most people had a job they had sacrificed a lot for the war. This was mirrored in the skirt lengths of the women – they typically wore skirts that were about knee hight or a bit lower.
1960s - It was the time of huge economic growth that culminated with the invention of the mini skirt in 1965.
1970s – The seventies are best known by the Oil Crisis of 1973 and the stock market crash in 1974. Fashion wise it also meant that wearing mini skirts was out.
1980s – It was a time of economic prosperity which brought shorter skirts and also power suits for women. The stock market crash known as Black Monday in 1987 also brought with it the lengthening of hemlines.
1990s – The first half of the nineties suffered greatly from the shock of the stock market crash in 1987 but during the second half of the 90s the economy started seeing extraordinary growth. It was accompanied by the retro mini skirts that quickly became fashionable.
2000s – 2008 saw the start of the biggest economic crisis seen since the Great Depression. Fashion experts agree that since longer and bohemian style skirts have started to make a comeback.
Want to know how the economy is doing? Just check out what your Girlfriend is wearing J
