Seventeen months into the recession, it's becoming clear that some things – besides guns and ammunition – will still be selling on the eve of the apocalypse.
Such as a McDonald's Quarter Pounder. Absolutely recession proof.
Same for French wine.
Lipstick. Jeans.
Chocolate. Cell phones.
And movie tickets.
Although Americans may be putting off big-ticket purchases like cars and appliances, they are still treating themselves, making some surprising categories not only recession proof, but recession fueled.
Like lipstick.
During the Great Depression, cosmetic sales surged, a phenomenon that became known as the "lipstick effect."
"What we saw was a consumer trying to make themselves feel better through small, indulgent, hedonic consumption," said Nancy Upton, of Northeastern University College of Business Administration in Boston. "They can serve as mood enhancers in today's economy. Women get a boost from red lipstick."
Consumer spending accounts for two-thirds of U.S. economic activity, making it critical to recovery. Consumers are crunching their budgets, deciding what’s expendable and what's not. Luxury items, such as jewelry or fine watches, are getting their wrists slapped. Kids are learning they can do with fewer Barbies.
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