As the Taylor Swift effect saw spending surge in Dublin last month, you could be forgiven for wondering, where has the Cost-of-Living Crisis gone?
Around 150,000 ‘Swifties’ descended on Dublin for the US superstars three sold out shows at the end of June – and they were not afraid to flash the cash while they were here.
According to Bank of Ireland, spending among 13 to 17-year-olds soared by 63% when Taylor came to town.
The adults were getting involved as well, with spending among 18 to 25-year-olds up 25% and spending up 30% for those aged between 26 and 35-years-old.
On Newstalk Breakfast this morning, consumer affairs journalist Siobhán Maguire said our spending habits have changed after the uncertainty of COVID and the cost-of-living.
“2024 has been dubbed the Year of Affordable Luxuries,” she said.
“This relates back to what economists would call the lipstick index or the lipstick effect.
“When we face any kind of economic crisis, and we've had that in recent years with the cost of living crisis, consumers will then tend to spend more on less costly goods.
“So, you know, we take our little bit of fun where we can get it – be it the overpriced chocolate bar or the specialty beer and indeed the ticket prices.”
Cost-of-living
Asked whether the spending shows that Ireland’s cost-of-living issues have been overblown, Ms Maguire said it is more about prioritising enjoyment over other things.
“That's where the kind of affordable luxuries creep in,” she said.
“Where people try and take their little bit of fun from wherever, whether it is, as I say, that overpriced chocolate bar.”
Treatonomics
Ms Maguire said ticket prices are surging because you have “one massive company setting prices according to what they claim would be insurance prices and bringing equipment over to various countries”.
“All of that is passed on to the customer,” she said.
“But again, it goes back to trying to feel a little bit better, against the backdrop of, say, coming out of the COVID pandemic and then cost of living, high energy prices, high food prices.
“If you're a massive fan of somebody, you're going to find that money somewhere to buy that ticket.”
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