Is recession coming in US? Expert gives stark warning on high popularity of Labubus

The craze of Labubu dolls reached new heights and the recent burglary from a Los Angeles-area store is the proof. Though labubu dolls have been spotted dangling from Louis Vuitton and Saint Laurent purses as fashion’s quirky new status symbol but an expert has flagged that their popularity could soon spell doom for the economy.

Studies have shown that during economic downturns, consumers are more attracted towards dopamine-spiking splurges that don’t break the bank — like lipstick, ice cream or movie tickets, labelled as "affordable luxuries" by experts. These creepy but cute mischievous Labubu dolls could be its latest iteration.

“When we’re seeing this kind of a craze in an uncertain economic climate — where consumer confidence is at best uneven and filled with anxiety — it’s hard not to look at this and try to think, ‘well, are people being rational?'” David Lang, Sacramento State Economics Department chair, told the New York Post. As tempting as it is to say “hell no” — some economists beg to differ.


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Labubu dolls are recession indicators?

“Most behavioral economists’ answer to that would be — they’re acting completely rationally,” Lang added. So pausing on the extra vacation or next designer bag buy, consumers instead might go for the “accessory for the designer purse, which might be the Labubu.”

“And they feel like that’s an acceptable, reasonable thing to do when they see the likes of Rihanna walking around with one attached to her purse,” Lang added.

Labubu dolls, viral little monsters, have flooded the streets of the Big Apple and other cosmopolitan cities and are typically sold or $20 to $40. According to economists, believe the out-of-control spending spree for the trendy dolls could actually be a sign that a recession is around the corner.

First designed a decade ago by Hong Kong artist Kasing Lung and inspired by Nordic mythology, Labubu dolls have blown up in the past year, with people lining up before dawn on their release days and even sparking the occasional brawl. Their popularity skyrocketed overnight, after K-pop star Lisa was seen with a Labubu hanging from her purse.

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“Labubus are not really just a toy, but more of a tiny, tangible flex that people get to walk around with,” the economist said.

As for the next recession, Lang said one is on the way — it’s just a matter of when. Close to two million Americans are currently collecting unemployment, the most since the COVID-19 pandemic threw the economy into its last recession, new Labor Department data released Thursday revealed. The number of Americans who have been continuously receiving unemployment benefits rose by 38,000 to 1.97 million in late July, the data said.

Labubu dolls stolen from LA store

The theft of $7,000 worth of the dolls took place in Los Angeles on Wednesday at the store, One Stop Sales, located about 18 miles east of Los Angeles. The LA County Sheriff’s Department told the AP that four suspects used a stolen Toyota Tacoma in the robbery, and the car has since been recovered.

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One Stop Sales posted on Instagram that the thieves broke into the store at 1:30 a.m., taking all the inventory and “trashing our place.” They shared CCTV footage showing the robbery on Instagram.

The post’s caption read: “Today we got robbed, and they took all of our inventory, trashed our store, we are still in shock, if you guys can share this post please and help us find these [thieves].”