Marketplace Morning Report Sometimes a little lipstick goes a long way
Jan 19, 2026
Join Julia Coronado, a macroeconomist and founder of Macro Policy Perspectives, as she discusses the economic implications of tariffs and their impact on inflation and hiring. Elizabeth Troval explores the 'lipstick effect,' revealing how consumers splurge on small luxuries during tough times to boost their spirits. Samir Hashmi shares insights on the surge of millionaires in Dubai, fueled by tax-friendly policies and luxury real estate, while also highlighting housing affordability challenges. These compelling narratives paint a vivid picture of modern consumer behavior and economic dynamics.
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Tariffs Squeeze Jobs More Than You Think
- Existing tariffs boosted consumer inflation but reduced labor demand as firms grew cautious about hiring.
- Companies reacted to cost pressure by cutting back on hiring rather than expanding payrolls.
Tariffs Raise Prices And Freeze Decisions
- New tariffs would raise prices on goods we buy from Europe and add to companies' cost pressures.
- The bigger damage comes from geopolitical uncertainty that discourages investment and hiring.
Small Luxuries Thrive During Economic Stress
- The 'lipstick effect' means consumers buy small luxuries to feel better in a weak economy, boosting accessories and everyday treats.
- Retailers can profit by offering inexpensive personalization and novelty that revive existing items.