A closer look
Cosmetics company executives have long observed a bizarre economic phenomenon where the sales of premium lipsticks actually increase during times of severe financial recession. Leonard Lauder, the former chairman of Estee Lauder, coined this metric the Lipstick Effect after noticing a significant spike in cosmetic sales following the 2001 dot-com crash and the September 11 attacks. The underlying economic theory suggests that when consumers can no longer afford massive luxury items like sports cars or designer handbags, they seek out smaller, more affordable luxury goods to give themselves a tiny dopamine hit of prestige. So, while the housing market collapses and unemployment skyrockets, millions of people are financially self-soothing by purchasing outrageously overpriced tinted lip wax. It is truly a beautiful testament to human resilience that our immediate response to impending poverty is to make absolutely sure our lips look fabulous
