The Lipstick Economy

It's no news that alcohol sales, gambling, and the sex industry all thrive in economic hard times. We all turn to our vices when we need a break, but who would have known that lipstick was one of them.

It's a financial indicator that's as true as that colorfast shade that stays on your lips. In bad times, lipstick sales soar. The term " Leading Lipstick Indicator" was coined by Leonard Lauder, chairman of makeup company Estee Lauder after he noticed the trend during tough economic times.

After all, women don't need to think twice about plunking down eight bucks for a drugstore lipstick while passing on $800 Jimmy Choos.

History can be our guide here. As a Harvard professor explains: "The decade of the Great Depression, cosmetic sales increased 25 percent." After the downturn following Sept. 11, lipstick sales doubled.

Looks like we're on track for a similar lip-color craze with this latest economic funk. TheNew York times notes that in the last few months, lipstick sales have shot up 40%, and even put out a list of favorites ranging in price from the budget-conscious $1.99 to the more pricey but still affordable $55. Preferred colors for this new economy? Red is out-Neutrals are in. So start shopping!

Beauty, Lipstick, Poor Economy