The Stripper Index (Recession Predictor)
Does it work?
What's the Stripper Index Again?
Picture this: While Wall Street suits are hunched over their Bloomberg terminals analyzing yield curves and unemployment data, there's a group of people who might already know what's coming next – and they're working the night shift at your local strip club.
The Stripper Index isn't some joke cooked up by economists with too much time on their hands. It's based on a pretty logical idea: when people start worrying about money, the first thing they cut isn't their mortgage or groceries – it's those Friday night trips to the gentlemen's club. Think about it – would you rather skip your car payment or skip bottle service?
Here's how it works: Strip clubs are basically the canaries in the economic coal mine. When corporate credit cards stop covering "business dinners" at Crazy Horse and regular customers start nursing one beer all night instead of making it rain, dancers notice immediately4. They don't have to wait for some government report to tell them the economy is tanking – their tips already dried up.
The 2008 Financial Crisis
The Stripper Index had its breakout moment during the 2008 financial crisis, and honestly, it was kind of spooky how accurate it was. Before Lehman Brothers collapsed and before "subprime mortgage" became a household phrase, dancers in Las Vegas were already reporting that their high-rolling corporate clients had vanished.
A Stanford study looking at Chicago's sex work market found that when unemployment went up by 1%, arrests for prostitution dropped by about 4.5%. When times get tough, demand for adult entertainment tanks faster than a tech stock in a bear market.
But here's where it gets really interesting – strip clubs also saw a flood of new workers during the recession. Former teachers, accountants, and tech workers were suddenly showing up for auditions, which tells you everything you need about how bad the job market had gotten.
The Science Behind the Madness
The Stripper Index taps into something economists call "discretionary spending patterns" – basically, the stuff you buy when you're feeling good about life. Strip clubs fall into the same category as fancy restaurants, expensive haircuts, and those overpriced cocktails with names like "The Millionaire's Martini".
It's similar to other weird-but-accurate economic indicators like the Lipstick Index (cosmetic sales during recessions) and the Men's Underwear Index (guys apparently wear their boxers longer when money's tight). These indicators work because they capture real human behavior, not just statistical abstractions.
But Wait, There's a Catch (Or Several)
The Stripper Index has some serious limitations that would make any serious economist's eye twitch.
The Data Problem: There's no official "Department of Strip Club Statistics" tracking this stuff. Most of the evidence is anecdotal – basically, "my friend who works at the club says business is slow". That's not exactly the kind of data you'd want to bet your 401k on.
Industry Disruption: OnlyFans and other platforms have completely changed the game. Young women who might have tried stripping in the past are now starting OnlyFans accounts instead, which means strip clubs are losing potential workers for reasons that have nothing to do with the economy.
Generational Shifts: Millennials and Gen Z just aren't hitting strip clubs like their parents did. Between student debt, changing attitudes about sexuality, and the fact that they can get their entertainment online for free, younger generations are spending their money elsewhere.
The Stripper Index Right Now: Flashing Red
So what's the Stripper Index telling us in 2025? Buckle up, because the news isn't great.
The Numbers Are Brutal
According to recent reports, things are looking pretty grim in the adult entertainment world:
Nevada's legal brothels are down 20% in revenue from last quarter
Las Vegas strip clubs have seen a 12% drop in earnings
Individual dancers are reporting income drops of 30% or more since 2019
Even across the pond, the pattern is holding. Catherine De Noire, who manages a legal brothel in Europe, noticed a "huge dip" in business right after Trump won the 2024 election. She attributes it to economic uncertainty rippling across the globe.
The Verdict: Interesting, But Don't Quit Your Day Job
Look, the Stripper Index is fascinating, and there's definitely something to it. When you're in an industry that depends entirely on people having extra cash to blow, you're going to feel economic changes faster than most.
But here's the thing – it's more of a "nowcasting" tool than a forecasting one. By the time strippers are complaining about slow nights, the economic damage is already happening. It's not so much predicting the recession as it is confirming that we're already in one.
That said, if your local dancers are all saying business is terrible, maybe it's time to double-check your emergency fund. They might not have economics degrees, but they've got their finger on the pulse of discretionary spending in ways that Wall Street sometimes misses.