DW: And I watch the sales of women's underwear...despite the court order
Economists sometimes watch men’s underwear sales to predict changes in the economy. The idea is that when money gets tight, men skip buying new underwear since it’s not something anyone else can see. This idea was first talked about by former Federal Reserve Chair Alan Greenspan. During a recession, people usually cut back on small, personal items like this, which can be a sign that the economy is slowing down.
For example, underwear sales dropped during the 2008 recession, then went up again as the economy got better. Even though this isn’t a perfect system, it’s one of many ways experts try to spot trouble early. Men’s underwear sales are easy to track and don’t get affected by style trends like other clothes do.
Source: EDU Vast