Hot Waitress Economic Index
Candlefocus EditorThe idea behind the hot waitress economic index is that in a robust economy, attractive servers are more likely to leave their job and advance in their career, leaving the industry with fewer attractive servers. This in turn serves as an indication of how attractive the job market is, with a lower number of attractive servers signifying a weak job market, and either a current or upcoming recession.
Though this index is certainly controversial, there is some truth to its predictive power. A study conducted by economists Christopher Skinny and David Bielen in 2017 found that the index was indeed predictive of recession, but only after a certain period of time - typically four to six quarters before a recession.
However, this index is not without its problems. It relies on an archaic idea that attractive servers are the only ones worthy of success, implying that unattractive servers have less value. This of course is a false and outdated narrative, as anyone who is dependable and hardworking should have the same chance of success, regardless of their looks.
In addition, there have been criticisms that the index is nothing more than a clever marketing ploy, intended to raise awareness of the magazine rather than to serve any serious economic purpose. The creators of the index have been quick to deny this, stating that any successes of the index are simply coincidental.
One thing is certain, the hot waitress economic index has sparked debate and discourse among economists and pundits alike. Despite its flaws, it can be an interesting way to think about the state of the economy and how the job market fares on a wide scale. The importance of the index, however, lies in the accuracy of the data being used and the ways in which the results are interpreted.