Stripping Index

I'm an economist, and an enjoyer of strip clubs. I wanted to talk briefly about the Stripping Index. So, in economics and finance as a whole, we typically deal with a large number of fancy formulas, indices, and predictive models. Some economist and financiers prefer to look at the pure mathematical formulas for predicting how the market will go. Most people know of some of these common indicators: Inflation, %unemployment, job fill time, median wages, housing prices, and default rates to name a few. Some are better than others, and you can build some great predictors using various combinations. But, one key predictor of how a market and economy is doing is consumer spending, primarily discretionary spending.

And this is where the Stripping Index comes in.

Unfortunately, many economists mock this, but it is actually a strong indicator of how a market is doing. There is no formal measure, as no one can go to their Board of Trustees, or local government agency and say with a straight face "I want to research the correlation between Sex Work and Economic Conditions". But, there is something there.

Sex work, of which the many focus is stripping (in the USA, at least) due to it being legal, is likely one of the biggest sources of discretionary spending. Statistics aren't easily accessible, due to lack of study, but it is estimated that the Sex Work Industry is valued between $10-15 billion annually.

So, when times are tough, spending contracts, starting with discretionary stuff first. And sex work contracts first. And Strip Clubs are a great indicator. Strippers know their regulars that will always show up, but they also know of the amount of corporate events, sales executives trying to close a deal, bachelor parties, and overall amount of clientele. So, if you want to know how the economy is doing, ask a stripper.

When things are looking up, they will talk about how much money they made, how busy they are, and the type of clientele showing up. The first sign for them is when the corporate and sales clientele stop coming in. This typically means the beginning of an economic downturn, ESPECIALLY in major bellwether cities (NYC, San Francisco, Boston, DC, Seattle, and Chicago to name a few). These major companies know when times are about to get tough because they hire people like me, either directly or indirectly through a consulting firm.

When the bachelor parties, and average joes aren't showing up as much, that typically means an economic downturn is actively/imminently happening.

When even the regulars stop showing up, that means it is a recession.

So, next time you want to figure out how the economy is doing, ask your local stripper how business has been.