Everybody's Business Can Makeup Help Prop up the Economy?
Nov 14, 2025
Allison Schrager, an economist and Bloomberg Opinion contributor, delves into the controversial 50-year mortgage proposal as a potentially helpful solution for first-time homebuyers. She discusses how this plan might ease housing affordability but warns of the political obstacles ahead. Joining her is Amanda Mull, a Businessweek reporter, who shares insights on Ulta's dominance in the beauty retail space, highlighting the 'lipstick effect' where consumers splurge on affordable makeup during tough times. Their conversation reveals intriguing connections between beauty and economic trends.
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Lipstick Effect Is Small-Treat Spending
- The 'lipstick effect' describes small-luxury purchases rising during downturns as people trade big buys for treats.
- Research shows purchases act as inexpensive mood lifts, not primarily as mating or job-market strategies.
Shoppers Describe High Makeup Spending
- Reporters interviewed Sephora shoppers who described monthly makeup spends ranging from $50 to $800 or more.
- Shoppers said makeup gives a different, immediate joy than buying a blazer and can become a recurring small indulgence.
50-Year Mortgage Lowers Monthly Strain
- A 50-year mortgage spreads principal and interest over more time, lowering monthly payments and marginally improving affordability.
- Allison Schrager argues it is neither clearly worse nor transformative and may beat alternatives like financial repression or loosened lending standards.