Way back in Econ 101 we learned that every dollar spent generates hundreds of dollars in downstream value in the economy. It's pretty simple. If you pay $10,000 for a new deck, your builder probably spends $9,900 of what you pay him on supplies, food, clothing, a new drill, his home mortgage, and puts a little in the bank. And all the other people who get the builder's $9,900 spend $9,800 or so on their stuff, and eventually $10,000 + $9,900 + $9,800 ... add up to a really big number.
The entire economy is built like word-of-mouth marketing -- you "speak money" to two friends, and they keep passing the word along.
So we have some good news. Portfolio magazine has calculated that Britney Spears contributes $120 million to the U.S. economy only in the first round of the paparazzi, record suits, and hairstylists employed by her. Geez, if she even appears on a tabloid cover, copy sales jump 33%. Now carry forward the multiplier effect, and every Britney hiccup may push the U.S. forward by 1 or 2 billion in value.
There's a lot of worry in the States today about the economy. Solution is simple. Go buy a tabloid with Britney Spears on the cover, and next week your boss will give you a raise.
