Fashion Multiplier

Thursday, September 13, 2012

Mercedes Benz Fashion Week Mercedes Benz Fashion Week (flickr/j-no)

Greg David, director of the Business & Economics Reporting Program at CUNY Journalism School, contributor to Crain's New York Business and author of Modern New York: The Life and Economics of a City, looks at the economic impact of Fashion Week on the city.


Greg David

Comments [16]

Hi Brian,

This has nothing to do with fashion, but more on the subject of the economic theories that were raised in this segment. Can you invite Tom Woods or Robert P. Murphy to address these issues?


Sep. 13 2012 03:32 PM

The Super Bowl is a waste - not because it won't bring in money - but because it's a flash in the pan... Fashion Week and the US Open and the Marathon - happen every single year... and so they definitely have a much bigger impact. You have ppl from all over to come back year after year for those events. Whether it's as big an impact as stated... I don't know... but certainly a big impact.
I do know that statistics can be manipulated in many different ways... and no matter what you read from whatever agency - good or bad - there should be a disclaimer.

Sep. 13 2012 02:16 PM

I listened to the guest and his pithy comments never surprise me.

Sep. 13 2012 11:47 AM

any of these commenters would be a better guest that the one you have... David... Greg... David... come on, dude, buy a last name!

Sep. 13 2012 11:24 AM
RJ from prospect hts

It would be *so* nice if, when Greg David's business-favorable perspective is offered that a *labor-favorable* perspective were also presented. He may think that the Garment Center is a "terrible" place--a word he doesn't elaborate on--but doesn't mention the working-class garment workers, and the bodegas and dollar stores that support them. Perhaps he'd prefer that Disney or another Starbucks were there? Which of course those garment workers can't afford. If an economic impact of Fashion Week, the Open, or the Super Bowl is being calculated, it would be nice to hear from a more sympathetic labor person rather than someone focused on taxes and business success. I don't begrudge him his point of view--I would simply like to hear a counterpoint in the same discussion.

Sep. 13 2012 11:07 AM
Sara from Bushwick

Wow, way to hate on the fashion industry.
As a micro manufacturer of men's and women's sewn accessories here in NYC, the only thing keeping myself and many of my colleagues here paying ridiculous rents is the garment district. With it's unique and indispensable mix of suppliers and services, it is arguably a very important component of our city's jobs and manufacturing infrastructure. Step in to Mood Fabrics any hour of the day and see tourists freaking out because they saw Mood on tv, and students swatching and dreaming up designs and then get back to us about the value of fashion week; which happens twice annually, vs. the superbowl, which is a one time event - incidentally the day of the year that domestic violence is always at it's highest. Sheesh.

Sep. 13 2012 11:07 AM
Sarah from Manhattan

I think that to compare how they project the numbers based on research he did with the tech industry is flawed. The tech industry is based in Silicon Valley, not NYC. The fashion industry in the US is based in NYC and has a much more broad impact.

Sep. 13 2012 11:03 AM
Truth & Beauty from Brooklyn

I think your guest is mistaken. Many of the clothing manufacturing jobs that have been outsourced to Pakistan, China, Malaysia, Indonesia should really come back to New York. If the garment district were spruced up and we got those jobs back, we be in much better shape.

Sep. 13 2012 11:00 AM
The Truth from Becky

I am a fashion fanatic! Fashion Week is a great boost for the NY economy, but how did we transition to this convo from the last?? That's life!... LOL

Sep. 13 2012 10:59 AM
mck from NYC

The trickle down is the opposite mechanism from a Keynesian stimulus. Trickle down is a doctrine that the history from the 1980s on has proven erroneous that more money for the wealthy will cause them to increase their business investments. Any business man or woman who adds to capacity just because they have more money from tax cuts is a fool. The only reason to increase capacity is due to DEMAND that is greater than can be met by current capacity. And Keynesian stimulus increases demand. Econ 101. Fashion week may stimulate demand by bringing visitors into the city, and thereby increasing demand for services as well as the goods they buy from City fashion vendors.

Sep. 13 2012 10:55 AM
kim from NY, NY

Bloomberg and the city like to emphasize the economic capital that these events bring to the city, but, it's also about the cultural capital, or at least the illusion of, that fashion week, US Open, etc contributes to NYC.

As for the numbers..I'm not buying that $865M either..nice segment.

Sep. 13 2012 10:53 AM
Joe from Port Washington

Isn't the difference between trickle-down econ and stimulus spending the simple fact that stimulus spending puts money in the hands of relatively poorer folks who spend more and spend more broadly, whereas trickle-down counts on the spending of the wealthy who save more, spend less and spend in ways that keeps the money in a tighter circle?

Sep. 13 2012 10:53 AM
Linda from Jersey Shore

My daughter works at Pastis Restaurant and has been raking in the $$ the past 2 weeks. Could be because everyone is back in town after summer vacation, or/and fashion week. Plus EVERYONE love the high line and Pastis is in the thick of it.

Sep. 13 2012 10:52 AM
BigGuy from Forest Hills

The multiplier is not controversial. Money and Banking has been a major portion of the study of Economics for decades.

Alleging there is not a multiplier effect exists is a cornerstone of very right wing economists and the very nutty extreme right -- the folks who want us to return to a gold standard. If you

Sep. 13 2012 10:51 AM

how about the UN opening in September? The NYPD gets tons of OT

Sep. 13 2012 10:50 AM

no it's not the same concept. it's trickle up. from fashion consumer to business to government. this guest is an A$$.

Sep. 13 2012 10:49 AM

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