It has been profusely noted, that since the pandemic, economies around the world have been struggling, with dozens of countries in an economic recession. However, with the rise of Taylor Swift, Beyonce and Barbie, a sudden economic influx has hit the US and the UK. It leaves one simple question unanswered; are they the answer to all our misery? The statistics, luckily, are saying yes!
This summer, the pop and entertainment industry has exploded with the release of the long-awaited Barbie films and the commencement of two famous pop artists tours, Taylor Swift on the Eras Tour and Beyoncé on her Renaissance tour. The two world tours together resulted in $5.4 Billion being added to the American Economy. Furthermore, the Barbie movie collected $609.5 million in just box office sales. Cumulatively this resulted in over an astonishing $6 billion infiltrating the US economy.
Typically, when one attends a concert, they not only purchase the concert ticket but also meals, beverages, transport, outfits and if they have travelled, accommodation, tourism and many other necessities. This money is later divided further between the artist, the venue, a possible restaurant, an Uber driver, a hotel … In all honesty, there are too many combinations to even list. Due to the tour dates being released well in advance of the concert, the services located around the concert venues cleverly hike up their prices as they start to approach that destined date. They do this due to the evident increase in demand as people require these services when visiting the concert. Subsequently, customers are obliged to pay steep prices and more money is taken in by the corporations. Ultimately, this obviously boosts the economy.
For example, a particular city which got rejuvenated by the influx of the entertainment industry was Stockholm, when Beyonce made a bang earlier this year. It was said that Beyonce’s two sold-out dates in Stockholm enabled the Swedish inflation rates to be bumped by 0.2% (quite a big deal) The increase was due to people spending more on “recreational goods,” goods which people would only be once in e.g. concert tickets. Beyonce also contributed to the surge in tourism in Stockholm where the prices of hotels and restaurants went soaring on average by 3.3%. This appearance boosted the entire Swedish economy, however, whether this was positive or not is questioned. Countries around the world have been trying to lower inflation and therefore this unexpected increase in inflation shocked Swedish economists who refer to it as the “Beyonce Blip’’. On the contrary, the boost to the tourism industry was long awaited since the pandemic, and its importance is not to be underestimated. Overall, this example conveys the magnitude of an icon's impact on the economy during harsher times.
Now onto the phenomenon known as the colour pink, Barbie. Barbie set multiple records as early as the day it entered the box office. As of September 4th 2023, Barbie has had a turnover of over $1.4 billion, this immense figure also manages to exclude the extra costs, such as the meals bought before the experience, the pink outfits and finally and most importantly the merchandise bought after seeing the film such as the “I am Kenough” Hoodies which dominated everyone's social media feeds directly after the film. It is no doubt that the arrival of the Barbie movie has significantly boosted the economy mainly due to the fact people were spending money they usually wouldn’t.
This takeover by the entertainment industry this summer greatly contributes to the world's economies as well as saving many local smaller businesses such as nail salons. However, one might question whether this positive turn will last as real life kicks back in and people are not splurging like they normally would on a concert or a cinema trip. The future these three female, feminist icons have entailed for the economy is one some economists could only ever dream of. However, the question most commonly asked remains: How long will this boost last? What are the consequences of a temporary economic haven?
By Annika Bjerregaard Edited by Aurore Lebrun & Annika Bjerregaard
Glossary
Recession - a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators
Inflation - the rate of increase in prices over a given time
so funny!
😍
Fun and light read!