Sunday, June 15, 2008

Inferiority Complex

I have heard that Hollywood and the entertainment industry are recession proof. The idea is that people turn to TV and the movies as a getaway in hard times. It's seen as an inferior good to vacations and expensive nights out on the town.

Speaking of inferior goods, an interesting recession indicator is lipstick sales. They typically go up, while spending on spa treatments and other beauty related items plummet. Lipstick is seen by working class women as a little luxury that makes them still feel beautiful, at a fraction of the price.

So this was my overly academic way of prefacing the latest bad news in the family. My pseudo step-brother, who works on the technical side of the TV and film industry in the L.A. area was laid off last week.

While the National Bureau of Economic Research's (NBER) Business Cycle Dating Committee may not have declared an official recession sure feels like one to me.

No comments: