Monday, October 15, 2012

What do baby diapers and suit ties have in common?

Good morning economists. The answer is that they are both types of economic indicators. Allow me to explain.

In 2008, because of the recession, diaper sales decreased by 9% since parents were changing the child's diaper fewer times a day. This of course led to an increase in diaper rash cream by 2.8% according to Symphony IRI.
 On the contrary, the demand for ties actually increased dramatically when new layoffs were announced in 2008 in the UK. This is because employees wanted to look their best in order to impress their employers and send signals as to the seriousness of their work. In a past post we have already discussed the positive impacts of how looking good can actually help your career.

Have you bought a tie lately? (scarf applies for ladies)

Have a nice day!


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