The predictions of economy using weird indicators

Future economic predictions using underwear and other weird indicators

There are numerous well-known indicators for economists to explain how economy is doing or predicting its future behavior. But there are also weird indicators that have a fairly good track, especially when compared to the effectiveness of traditional prediction methods. The future economic predictions using underwear, for example, is a curious but effective tool.

Most of these weird methods have a correlation and casualty explanation. That’s the main reason why they can predict or explain some economic activities. It’s also true that sometimes the two variables behave similarly and the economic explanation is only one of mere correlation.  In this article we explore underwear use for future economic prediction but also the famous Big Mac, cardboard boxes or women’s accessories.

How to explain future economic predictions through underwear sales

Underwear and the future economic predictions through recession and the U.S. Federal Reserve

The economists user underwear to explain future economic predictions and behaviors because a former head of the U.S. Federal Reserve believed on it. It was Alan Greespan who stated that any small decline in underwear sales signaled an economy going down the hill. He theorized that men sacrificed buying new underwear when money started to become scarce.

Gresspan was also known as “The Oracle” and he really enjoyed looking for secondary indicators to explain economy. He also pointed that the dry cleaning behavior of Americans could relate to economy’s health. If it went up it was the good times but if it went down it was the bad times.

Big Mac is also an economic indicator

Economists relate Big Mac with universal indicators because the product is present in almost all countries around the world. In 1986 The Economist proposed a measure to compare purchasing power parity using Big Mac price as the indicator. Then, if the cost in Beijing was $2 and $4 in New York, it indicated that the Yuan was depreciated against the dollar.

There’s also the use of Forex Investors who paid attention to Big Mac indicator because currency exchange rates tend to move toward that purchasing power parity. However, The Economist clarified the use of this indicator because it’s also affected by other parameters like salary and cost of living.

Women’s accessories and economy predictions

The underwear for future economic predictions also had a feminine counterpart. During the “Roaring Twenties” the economist George Taylor explained that the length of the skirt was a reliable economic indicator. During good times women wore shorter skirts to show off expensive stockings. During recession the fabric extended downward. The indicator was measured for almost 100 years and the results showed that it was not such a reliable economic oracle.

Other women’s accessories like lipstick also serve as economic indicators. In the 2001 crisis Esteé Lauder saw an increase in lipstick sales. Leonard Lauder the then-CEO stated that women seek cheaper pleasures in times of crisis. There’s also an indicator related to heels. The IBM Global Services expert Trevor Davis states that there’s an inverse relationship between heels and economy. If the economy is bad heels grow in height as a way to escape through more extravagant fashions.

The trash and cardboard boxes and the future economic predictions

The last weird indicators for future economic predictions instead of underwear are cardboard boxes and the trash can. The course of economy is also present in the trash and cardboard boxes. When the economy is working fine, both increase in number. People buy more things and the packaging is more present. On the other side, if economy is in bad shape the demand of goods decreases. It also affects the garbage generation, working as an interesting indicator of the economy health if you know where to look.

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