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Our Weekly Economic News Roundup: From Barbie to Grandma
August 12, 2023
Why Cannabis Companies Have Naming Problems
August 14, 2023
The Wall Street Journal tells us that women’s spending is up.
Let’s take a look.
Women’s Spending
Sweden
According to the Financial Times, the increase in restaurant and hotel prices temporarily boosted Sweden’s inflation rate even before Beyoncé arrived. Called eventification, women were there for more than the performance. Her tour spurred demand for hotels and restaurants,
Below you can see the Beyoncé impact on demand:
United States
Similarly, Philadelphia, Chicago, and Minneapolis reported a pop in hotel booking during Taylor Swift’s Eras Tour. In addition, many of us have seen the Barbie film several times and bought something pink for each show. With women buying multiple tickets to Taylor Swift and Beyoncé, their tours represent more than half of the worldwide sales for the top ten artists. Correspondingly, ticket sales for female headliners are up 400 percent,
Explaining the phenomenon, analysts’ reasons range from brilliant marketing to women feeling empowered by female superstars. In other words, “their power gives all of us power.”
Our Bottom Line: The Multiplier Effect
Women’s spending could be creating a multiplier effect.
The multiplier is a number that indicates the number of times an initial purchase gets added to the GDP. When we have a multiplier of 3, for example, then the $100 structure a contractor builds will get added to the GDP as $300. The reason is a sequence of transactions that create more income and more purchases. They are responsible for the extra income that economist John Maynard Keynes said we have a propensity to spend and to save.
Barbie, Taylor Swift, and Beyoncé have inspired millions of women to do the extra spending that spurs a multiplier effect. Starting with concert tickets, hotels, and restaurants, we wind up with a variety of businesses that have more demand.
My sources and more. Thanks to yesterday’s WSJ for inspiring today’s post and title and this WSJ for more of the details. Do also take a look at this FT article on Beyonce’s impact on Swedish hotel and restaurant prices..
