Part 6/9:
Fashion often holds various tacit indicators of economic conditions. The Lipstick Effect proposes that during turbulent economic times, beauty products—such as lipstick—witness an uptick in sales as consumers seek affordable luxuries. Meanwhile, the Hemline Index suggests a correlation between skirt lengths and economic conditions, asserting that longer skirts emerge during downturns, a counterposition to popular belief.
The Role of Pawn Shops and Military Recruitment
Another significant indicator relates to pawn shops, viewed as the “lender of last resort.” Increased activity and longer loan periods at these establishments typically signal that individuals are cash-strapped. A recent surge indicates an uptick in the number of people selling valuables to make ends meet.