The Lipstick Index
She's On The Money
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The Lipstick Index - I Don't Buy Lipstick.
The term was coined in the aftermath of September 11 during the 2001 US recession by a guy called Leonard Lauda, who might be familiar because he's the chairman of Estee Lauda Cosmetics. The lipstick effect is a consumer expression of something that economists like to call the income effect. As consumers incomes fall or become less stable, they'll actually forego big ticket luxury items and instead spend their now reduced income on a smaller luxury item.
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