Swifteconomics
Can Taylor Swift influence the economy? Can she create such a global phenomenon that governments want her to perform in their countries so she can boost their economic growth? Can she be the interest of academic research in many different fields? Of course she can!! She is not only a talented pop icon and a great influencer, but also one of the most successful businesswomen in the world.
And it is true Taylor Swift’s Eras Tour adds millions to the US economy, it is not only the purchases of tickets but also the spending on accommodation, merchandise, outfits, travel and food. It is estimated that her fans spend around $93 million per show. Her tour is estimated to boost the US economy by more than $5 billion in consumer spending. She is reviving the US tourist industry as her fans spend more on the local economy, distributing the consumer spending all along the US. Also her tour creates more money than 50 countries, which has as a result the Canadian prime minister asking her to add dates in Canada to her tour.
So did she single-handedly save the US economy from a recession? Probably not, but she definitely helped to provide a stimulus to the US economy. The US had an unexpected growth the last 2 quarters, seeing GDP increase by 4.9% in the third quarter of 2023 and by 3.3% in the last quarter of 2023.
Consumer spending has been the main driver of economic growth, while Taylor Swift’s tour contributed to higher consumer spending, the main reason is the higher confidence that people have. The strong labour market and the supply of jobs have increased individuals' security and they are more willing to spend more money, especially on leisure activities, than saving. As a result of more spending there is higher economic growth which may give a positive outlook for Joe Biden to run for the upcoming elections.
But what made the Eras tour so economically beneficial for the US economy? Ok Taylor Swift is an excellent performer, she can give a brilliant 3 and a half hour show, but the following factors also contributed positively to the success.
Communication and influencing strategy: her personal and relatable communication, through both her songs and the effective use of social media, have enabled her to create a strong community among her fans. But she doesn’t leave any detail to chance - even the lipstick she uses, or the watch necklace that she was wearing at Grammys. Everything is a detailed communication strategy that supports her business.
Timing: as mentioned before, her tour is perfectly timed in a period that consumer spending is high after the COVID pandemic and with a strong labour market that supports the extra spending of her fans.
Re-recording success: supporting her intellectual property and artistic rights by re-recording her early albums has been a success and a great business model. When her original record company sold the rights of her early albums to a company owned by individuals that had bullied her previously, Taylor Swift decided to re-record them; as she wrote all her songs she retained the copyright to both the music and lyrics. So legally she can create a new master recording using her own music and lyrics. A successful way of dealing with the issues around the property rights of artists.
Source: Sky News PIC:AP
And the big question is can she influence the next US election? She has evidently supported the regional US economy and she is definitely in the middle of the election debate, with the Republican side increasing the attacks on her, while the Democrats are trying to get her endorsement for Joe Biden. She could definitely influence many votes and the Democrats are hoping that she will be an outside boost to Joe Biden’s campaign.