The Hemline Factor and the Global Economy

The Hemline Factor and the Global EconomyIn 1926, an economist named George Taylor offered the so called Hemline index theory. He postulated that hemlines rise or fall according to the Dow Jones Industrial Average (DJIA).History seems to bear his theory out. Bang on cue - hemlines are dropping.Hemlines dropped during the post 1929 Depression day‘s, and while rising briefly during the 1930s, they stayed low throughout the 1940s. The swinging 60s saw higher hemlines (aka mini-skirts) and plunging necklines, during a long bull run. With the 1970s recession, the war with Vietnam. The oil crisis and the Watergate scandal, longer skirts re-appeared. The hemline factor Mr. Jones' measure of economic trends may hold a basic truth.The reasoning behind the hemline theory is if the economic mood is good, people are optimistic and this is reflected through market trends. Alternatively a mood of instability and anxiousness prevails in tough economic times, and enforced austerity forces an income shift to non-essential buying patterns. In in times like this, more practical styles are favoured, and so hemlines plunge.Apparently this is not the only economic trend that has been formulated. Terry Pettijohn 2nd, a professor of psychology at Coastal Carolina University who sees popular tastes shift during shifting economic times said "What we find attractive is not a stable currency," said Pettijohn, who has studied how economic and social factors also shape our preferences in pop music, film stars and even Playboy models. "It's affected by the environment, by what's happening in society, and what makes us feel more comfortable in threatening times."It’s been also noticed that sales of lipstick also do well in leaner times. Because it’s thought that when money is tight, women forego expensive new clothes and shoes in favour of cheaper retail therapy, like cosmetics. It’s also no surprise to some that cosmetic surgery is not suffering from the economic slowdown because it should last longer than a short-term fix like a wardrobe change according to psychologists Almost anything can be an economic indicator. Even our choice of food. During bad-times. Certain items are seen as recession proof. Things such as: chocolate, pasta, beer and candy bars. Hershey's have recently announced that their third-quarter sales are higher than last year's. Can’t be all bad then.
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