End of Swift, Beyoncé and Barbie season will hurt the US economy

The combination of the Barbie and Openheimer movies and Taylor Swift’s Eras and Beyonce’s Renaissance tours helped boost the US economy this summer. In fact, according to Morgan Stanley’s calculations, they are expected to add $8.500 million (€7.832 million) to the country’s economic growth this quarter. However, everything that goes up falls, and the end of these events could harm the US economy, according to digital portal Yahoo! finance. According to CNN Business, Swift’s tour alone likely generated $2 billion in North American ticket sales alone.

“The turn of these events, combined with the expiration of the student loan moratorium, this equates to a 1.4% drop. in real terms (personal consumption spending) in the fourth quarter of the year,” explains Morgan Stanley economist Sarah Wolfe.

In July, Federal Reserve Chairman Jerome Powell, emphasized the positive impact these singers would have on the US economy. In fact, he talked about the “Swift effect” in Philadelphia after the success of his two shows in May. Estimated singer can raise a total of $4.6 billion (4,238.5 million euros) with his first world tour in five years and will earn $1,000 million (922 million euros) from a series of concerts. Later, Bank of America also pointed to likely weekly consumer spending during the opening weekend of the Barbie and Openheimer films, which also teamed up to launch co-marketing, further boosting their success.

According to the Common Sense Institute, every Taylor Swift concert generates 140 million dollars (129 million euros) in the city where he works. and fans spend over $200 million (€185 million) on direct consumption. But his tour has already ended in the US. And movie ticket sales are down, as usual, as time goes by and people stop watching them. Beyoncé, on the other hand, has a month of the tour left. On the other hand, under such a predictable scenario, Morgan Stanley warns that these “significant and exceptional” events that have revived the US economy will also have a recovery effect in the last three months remaining until the end of 2023.

Economists note that the absence of Barbies at the box office could slow down consumption in the fall and winter. In fact, some indicators are already showing signs of a weakening labor market, which is an obvious spending driver for the domestic economy. Job openings are declining, and some surveys of American families point to more caution about spending. Cooling in the labor market occurs against the background of the revision of the forecast for economic growth in the second quarter to 2.1% from 2.4% on Wednesday.

“The data coming in for the third quarter shows that the economy continues to expand, but with signs of some slowdown,” said Wells Fargo economist Shannon Seery. “We continue to hope that the economy will gradually slow down in the second half of the year”.

Ana Jiménez-Zarco, professor of economics and business at the Oberta University of Catalonia (UOC), argues that the consumption of culture and content is becoming more important “among the younger generation”, but notes that this type of spending “is the first thing people withdraw if the economy is in a recession or slowdown”. “The impact of inflation is also noticeable, and we are adapting leisure activities to our economic situation,” he says.

Stash Taylor Swift

American singer-songwriter Taylor Swift receives $13 million for a performance (€12 million) during The Eras tour, according to Pollstar magazine. The artist is expected to earn $1.300 million (€1.200 million) during her world tour, making her the highest-grossing female singer in history. The average ticket price in the US is $215 (€198) for a show of 44 songs, over 3 hours of concert and several makeovers.

How much do Spanish artists charge for each concert? It was revealed this year that the Vigo City Council has requested budgets from various artists and they are in the highest cash. canary Quevedo with 520,300 euros, thanks to data disseminated by the Contracting Platform of the Government of Spain. Rosalia is asking for around €500,000, as her contracting office demanded from Valladolid city council in 2019, while C. Tangana is asking for around €320,000 and Alejandro Sanz around €260,000, according to various organizers of the event.

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