Even Paris Hilton can't shop America out of this recession
Thanks to a lawsuit, which claims -- tsk tsk -- that Ms. Hilton didn't fulfill her duties as an executive producer, we now know that she pulled in a respectable $22 million during 2006 and 2007, from various business activities and public appearances.
Even if Paris' finances suffer the same 10% cut as her television show, it's safe to say that Paris' continued exploitation of herself and the media's obsession with her will continue to provide her with enough disposable income to make good on her recent promise to save the economy, one shopping trip at a time.
For simplicity's sake we'll assume that Paris earned an even $11 million in 2006 and another $11 million in 2007 and continued to make similar amounts through 2008. Even a 10% reduction in earnings would still leave the 28-year-old with close to $10 million to satisfy her shopping urges.
So what will $10 million in recession fighting shopping trips yield for the economy?
Sadly not a whole lot.
Even if the entire $10 million went directly to profit it would still leave,
- a $70 million gap in year to year profits at American Eagle
- a $12 million difference for Gap's 4th quarter
- a $430 million deficit for Macy's 4th quarter as compared to last year
Despite her good intentions it seems that Paris just doesn't make enough money to single-handedly shop the U.S. out of a recession. Either we need to start paying her more money or look for a different solution to save the shopping malls of America.