Monday, October 20, 2008

Well, what do you know!
"During a recession, laxatives go up, because people are under tremendous stress, and holding themselves back," said Shapiro, now chief executive of SAGE, a Chicago-based consulting firm. "During a boom, deodorant sales go up, because people are out dancing around. When people have less money, they buy more of the things that have less water in them, things that are not so perishable. Instead of lettuce and steak and fruit, it's rice and beans and grain and pasta. Except this time the price of pasta's so high that it's beans and rice."

A recent Nielsen report listed tobacco, carbonated drinks and eggs as especially vulnerable to recession, and candy, beer and pasta sauce as recession-proof. On Thursday, Hershey's announced third-quarter sales and income higher than last year's. ("We offer a tremendous variety of affordable indulgences, and people love chocolate, even in hard times." said Kirk Saville, a company spokesman.)

And here is another reason why an increase in GDP does not imply greater happiness!
A downturn, then, could result in benefits unmeasured by the market. "If people eat out less, the GDP goes down," Conley said, "but nothing in the GDP captures what you gain if you cook and eat in a leisurely way with your kids."

The full article can be found here.

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