The sex industry, and likewise the spending of money associated with this industry and the act itself among consenting adults, is one of the indicators that mainstream economists rarely use when calculating their complex economic analyses regarding the state of economies around the world. It should be, because sex is almost as fundamental as eating and dressing up in clothing. Actually, it is more indicative of the health or lack thereof economically because the prices aren’t as regulated as other essential services and goods like food because it is mostly a black market around the world.
Matthew Lynn from the Bloomberg agency believes that in hard times, traditional indicators are useless. He suggests alternative benchmarks such as the price of prostitutes. The economist claims the Latvian sex market is the most precise indicator of the health of global trade.
“It’s very flexible. There’s no barrier for people coming here and the price is very flexible. It can change by the hour, by the day. It tells you very, very quickly what the state of demand is. There’s not much money flowing around the system. There’s not much cash there. And that means the economy is getting into trouble,” Matthew Lynn said (Russia Today 2009).
Likewise, in economic recessions there are fewer Babies Born, fewer Babies Planned. In one survey, 44 percent of women said that they were going to put off having kids or have fewer kids because of the economy (Time Magazine, 2009).
Sex during bad economy complicated
By Alex Boerger of The News Record
sour economy provides interesting twists in social behavior, with the latest fascination of many media outlets being the rise in condom sales during the recession.
Theories for this rise include sex drive being immune to the recession, at-home entertainment being cheaper than out-of-home entertainment and an increased rationality about having an extra dependant in the budget, said William Saletan of Slate magazine.
But what really constitutes the rise in condom sales? For one, condoms are cheaper than birth control pills; 23 percent of women are having a harder time affording birth control, according to a Washington Post survey.
People make quick, intuitive decisions: Buying condoms in the short term is cheap compared to the little bit of extra risk added by switching from birth control. But, the increase in sales could also be a result of how expensive children have become.
Original article By Alex Boerger of The News Record
You can check out the Latvian hooker index — While not calculated with the rigorous detail as other indicators, capital markets blogger John Hempton keeps a keen eye on the cost of the world’s oldest profession in one of the globe’s toughest economies.
Current reading: Hempton says Latvia’s poor exchange rate is killing the prostitution business in the Baltic country and could be an indication of a debt default.