Economic indicators are all around us, according to economists.
Consider the lipstick effect, a socioeconomic theory that claims spending on cosmetics increases when markets decline. It is logical. Why not get a tiny Lipsick to brighten yourself up when things are bad?
Others point to the hot dog at Costco, which has obstinately remained at $1.50 for years. Similar to this, the price of gigantic 23 ounce cans of Arizona Iced Tea has remained $0.99 ever since it was put on the now-famous labels in 1996.
It’s safe to conclude that if one of these two goods’ prices were to alter, the U.S. economy might be in for a collapse comparable to the crash of 1929. Costco co-founder Jim Sinegal once forewarned new CEO Craig Jelenik of the upheaval that would result from such a price shift. I’ll kill you if you increase the effing hot dog’s price. Calculate it out.
The Costco hot dog’s current price is $1.50. However, past CEOs in the big box retail industry are still fearful for the state of the American economy.
In the past, Home Depot (HD) – Get Free Report The CEO of the company, Bob Nardelli, told Fox anchor Neil Cavuto that the country’s current economic policies are not leading it to prosperity.
“I’ve been doing this for 52 years, and I think that I see more uncertainty now than I’ve ever seen in our country in running corporations across a broad sector of businesses,” said Nardelli.
“I was just in L.A. a couple of weeks ago, I paid $6.43 a gallon for gas. So it still has a lot of pressure on us out there. We hear about UPS potentially going on strike and some of the other things that are out there with United and the [United Auto Workers], so I think we have more uncertainty.”
