In 2008, the stock market collapsed in what would later be known as the Great Recession. 17 years later, those of us who were toddlers at the time are coming of age during a financial crisis of our very own.
On April 2, dubbed “Liberation Day” by the Trump administration, President Donald Trump announced 10% tariffs on all U.S. imports, a move that will certainly increase the price of everyday goods for Americans.
The next day, the S&P dropped 4.8%.
Since then, everyone from economists to college students has speculated recession may be looming. According to the Wall Street Journal, 45% of 64 economists surveyed predicted a recession in 2025. In early April, J.P. Morgan raised the probability of recession from 40% to 60%.
However, Generation Z is predicting recession using indicators that have nothing to do with high inflation, rising unemployment and decreased consumer spending.
From the return of business casual at the club to the popularity of Charli XCX’s hyperpop bible “BRAT,” it seems like anything can signify economic insecurity if you think hard enough. Especially considering many of these trends are reminiscent of the cultural landscape of the late aughts.
It’s easy to dismiss these assertions as unscientific or coincidental. After all, trends run on cycles, and what was popular in 2008 was bound to reenter the cultural zeitgeist eventually.
However, it’s also important to recognize the impact of our economic environment on our culture. Trends do not exist in a vacuum. We exist in a political, cultural and economic context that, whether we realize it or not, affects the choices we make.
The lipstick index refers to the increased sales of inexpensive cosmetics like lipstick during periods of financial hardship, as consumers treat themselves with cheaper luxuries.
For Gen Z, this has manifested in skincare sales. Rather than shell out hundreds of dollars on clothes or jewelry, people opt for simpler products that still allow them to maintain a sense of normalcy.
Recession blonde, referring to a darker blonde shade that requires fewer touch-ups, and other low-effort hairstyles have become more popular as consumers have less disposable income to go to the salon for hair maintenance.
The hemline index hypothesizes that as the stock prices go up, so do hemlines, and vice versa, hence the current maxi-skirt craze.
Generally, as the economy worsens, fashion becomes more conservative and Gen Z’s fashion has been marked by neutral colors and corporate, structured styles, even in strictly casual locations like the club. Exemplifying this trend toward business-casual among Gen Z, the office siren aesthetic took TikTok by storm in 2024 with young women donning pencil skirts and rectangular glasses.
After all, who can afford one wardrobe for the office and another for the club? In this economy?
Despite similarities to the 2008 recession, the context of the current recession will cause different trends to rise.
Lydia Johnson, a 19-year-old fashion enthusiast, said Trump’s tariffs will impact consumer spending, causing new fashion trends.
“We’re going to see a decline in foreign fast fashion with brands like Shein, which is China-based,” Johnson said. “When we don’t have as much access to foreign-manufactured products, we’re going to look into what we already have here.”
Frustration with the establishment is a common sentiment among Gen Z, and that goes for their opinions on the current economy as well.
Addi Schaefer, an 18-year-old culture writer, said their peers have been aggravated by the lack of action taken by the government to prevent recession.
“With Trump, it feels like he is actively causing the recession,” Schaefer said.
Johnson said the Trump administration’s role in the economic downturn may inspire Gen Z to use fashion to rebel against the establishment.
“I think that people are going to use fashion as this political tool,” Johnson said. “We’ve seen rebellion, what would be flappers of the 1920s or when women started to wear pants in the 1930s and even the victory red lipstick of the 1940s. I think we’re going to see a lot more of that today.”
Recession pop, characterized by fast bpm and upbeat lyrics, has long been discussed in the context of the Great Recession. When we can’t afford the club, we bring the club to us, jamming out to Kesha, Pitbull and Lady Gaga from the comfort of our homes.
In 2025, many of these artists are making a comeback, with Kesha collaborating with T-Pain for her new single “YIPPEE-KI-YAY” and Gaga releasing the true-to-form pop album, “Mayhem.” 2024 was also a huge year for pop music with artists like Sabrina Carpenter, Chappell Roan and Billie Eilish dominating the charts.
Shaefer said their friends have begun turning to art during these times to lift spirits and make the world feel less uncertain. The fast tempos and carefree lyrics that characterize pop music are sure to do just that.
For Gen Z, thinking about what the recession means in a cultural context provides a sense of security.
Gen Z was born into a world of economic insecurity. We spent our childhoods during the Great Recession and went through adolescence during the COVID-19 pandemic. The cost of living, housing and education has risen year after year with no end in sight.
Gone are the days when a college degree meant a stable job, a nice house and a retirement plan. Today, college students dream of affordable housing and paying off their student loans.
Dealing with the implications of a recession on our long-term financial goals is difficult, especially when the few people who could prevent economic collapse seem content to watch the world burn.
It’s much easier to think about the recession not as the impending crisis with decades-long effects that it is, but instead as a collection of fashion trends and an excuse to stream Lady Gaga’s new album.
Though this mindset may seem frivolous, it ultimately reflects what society has always done to cope with the scary realities of political and economic instability — turning to art and style for a sense of stability and community.