Global Economy: Recession Is Confirmed By The Big Mac Index And The Basic Concept Of Pizza
Burgers, pizzas, and french fries… in the “Lipstick effect,” revealing “pocket” indications, attest to the recession. They have the chance to demonstrate how the changes in the global financial system have affected individuals’ buying power in addition to providing fast lunches.
Some pocket indicators that reveal changes in people’s purchasing patterns include the Big Mac Index, lipstick impact, and Pizza Index. They reach the same conclusion as the World Economic Forum study, namely the impending global recession, after analysing the subsequent indications.
The Fundamentals Of Pizza: The Pizza Principle
Eric Bram observed in 1980 that a slice of pizza cost the same as a subway fare and that this parity had persisted for 20 years. As a result, he chose to refer to this phenomenon as the “Fundamental Principle of Pizza,” and experts will likely validate it in the next years.
In turn, inflation has dramatically increased the operational expenses of pizza chains. According to market experts, the average rise in raw materials is 40%–50%, while energy prices have increased by three times as much, resulting in shops with negative returns.
Retail has a significant portion as well, and the frozen pizza market is expanding. Additionally, a lot of establishments provide a pizza choice on their menus. Pizza may thus generate between 300 and 350 million euros as a category.
Big Mac Symbol
The Bic Mac index is another statistic that falls under the umbrella of market indicators. The Economist created the equivalent index as a novel approach to measure the price of the renowned burger in relation to various currencies according to the company’s widespread appeal throughout the world. The index is a physical representation of purchasing power parity.
Burger prices have increased by 40% over the last 10 years due to inflation. Numerous economic elements, such as labour costs, transportation expenses, food prices, and general inflation, go into the pricing of a burger like this. Many people even think that eating this burger would help them better comprehend the US dollar’s buying power and current inflation rates.
The Lipstick Market As A Sign Of Impending Recession, The “Lipstick Effect”
Many people think that the rise in cosmetics sales is a sign of inflation and decreasing economic development. Cosmetics suffered significant losses last year. lipsticks, creams, and toiletries made by women, as well as male-made cosmetics.
Why does this matter? This can be explained easily. Anyone who is unable to purchase a home or automobile affords himself a little amount of luxury each day. Because of this, many experts are concerned and believe that the turn to cosmetics is an indication of a catastrophe. The “lipstick effect” is the name given to this phenomenon.
Another example is the increase in cosmetics sales that occurred in the US after the terrorist attacks on the World Trade Center Twin Towers in New York in 2001.
In fact, while discussing the incident, Leonard Lauder, the honorary president of the American cosmetics juggernaut Estée Lauder, recalled that a similar incident had occurred during the “Great Recession” in the 1930s.
