by Shannon Touchstone, Managing Editor
Want to know how the economy perform in 2014? Maybe, the answer can’t be determined by looking at stock indexes. Main Street and Wall Street have never been farther apart than they are now. Even though American multinational corporations are experiencing record profits, middle class American consumers are barely able to save for retirement. It has been a slow steady trek for the American economy. GDP grew at an annual rate of 4.10, measured in the third quarter of 2013, an increase from an annual rate of 2.50 percent
Certainly, things are looking up.
For years economists have considered a correlation between rising economic activity and the length of womens’ hemlines. George Taylor first suggested the correlation in 1926, shortly before the 1929 Wall Street Crash, and well before GDP boomed in the 1950′s at an annual rate of 17.2 percent.
It would appear that on the downward slope, the length of hemlines are a leading indicator. So, when George Taylor first made his observation, hemlines were dropping.
On the upward slope, hemlines are a lagging indicator. The dramatic gains realized in the 1950′s preceded womens’ desire to wear miniskirts in the 1960′s.
I believe that this theory is proven true time after time because its an indication of consumer confidence. Confidence results in riskier choices. Given that American labor rates have held steady for the past decade, it suggests that American citizens are not confident enough to ask for raises.
Now is the time, ladies! Put on that miniskirt and demand that your employer give you a raise.
Better yet, start a business of your own making miniskirts.
The economy is looking up for 2014.