💳 How “Treatonomics” Is Affecting American Consumerism

In today’s newsletter I discuss how “treatonomics” is affecting American consumerism, Taylor Swift announces her 12th studio album "The Life of a Showgirl", the Portland Trail Blazers sell for $4 billion dollars, the Las Vegas sphere is showing the original "Wizard of Oz" movie, Aaron Rodgers and actor Ryan Rottman are relaunching AthleteAgent.com as the IMDB of athletes, and NYC startup Runwise has invented a hardware software platform to eliminate overheating in large buildings.

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💳 How “Treatonomics” Is Affecting American Consumerism

There’s a new trend and buzz word in the world of economics called "treatonomics" that’s gaining traction, and it's having a big impact on American consumerism. Treatonomics is an economic behavior that involves spending on small, mood-boosting luxuries or bigger, life-affirming experiences to cope with the ongoing stress of daily life. It’s a modern version of the "lipstick effect", which was coined by Estée Lauder chairman Leonard Lauder after observing increased lipstick sales following the 9/11 attacks. The treatonomics trend has become popular with younger generations, and is also known as "Little Treat Culture" by Gen Z on TikTok. This consumer spending pattern is a way of finding moments of joy even while facing everyday financial pressures.

The treatonomics trend extends from tangible goods to experiences. According to a report from TheIndustry.beauty, the market for prestige lip products grew by 16% in the first half of 2025, which is almost twice the rate of overall makeup sales. This shows consumers are still willing to spend on items that make them feel good. This phenomenon also includes spending on collectibles like Labubu dolls, which if you don’t know are these small, collectible vinyl figures designed by artist Kasing Lung, and are known for their distinctive "mischievous, offbeat" appearance with a toothy grin.

On the other end of the spectrum, larger life affirming experiences like concerts are also part of the treatonomics trend. It could be a small concert at a local club, or a concert ticket to a Taylor Swift concert that costs over $500 dollars. 

Lingering pessimism over the economy is a key driver for "treatonomics," as people look for ways to boost their mood. In the United States, the economy has seen a slight increase in consumer confidence, but it remains subdued. 

The treatonomics trend is also changing how retailers and investors think. Right now Gen Z accounts for 34% of new digital auction platform users and 54% of first time collectible buyers in 2025. Their spending habits are defined by three pillars: nostalgia with a twist, social proof, and an investment mindset. Companies like Pop Mart and Funko are benefiting from Gen Z’s love for nostalgic collectibles and pop culture, which are often sold at low price points. Analyst De Mello warned that a risk for businesses is the rise and fall of "treatonomics" for fads because the customer base is finite. According to Ainvest.com, 43% of Gen Z collectors are influenced by TikTok and Instagram trends and 22% view collectibles as long term assets.

This economic shift points to undervalued sectors within emotional retail, which is a thing apparently.

Who knew? 

Meredith Smith, an analyst, says that treatonomics is about moments of guilt free joy. Looking toward the second half of 2025, treatonomics could evolve with emerging products like virtual reality concerts or sustainable beauty items. Experiential retail like concerts and other events show how experiences can outperform goods in a downturn. But, as global uncertainties linger, economists and investors will continue to monitor whether the treatonomics boom is sustainable, or if it signals a deeper consumer fatigue.

🎰 Business

The owners of Sphere in Las Vegas have reportedly sold more than 120,000 tickets for their "Wizard of Oz" immersive experience, which begins on August 29, 2025, and runs through March 2026. The production cost $80 million dollars to produce and license, with tickets starting at $104 dollars, totaling $12.4 million dollars, so I guess they’re on their way to recouping their investment. CEO James Dolan said during Madison Square Garden’s recent earnings call that the "Wizard of Oz" show is going to be groundbreaking. Apparently displaying a 86-year-old movie in a sphere is what counts as "groundbreaking" these days.

🎤 Entertainment

Taylor Swift officially announced her 12th studio album "The Life of a Showgirl" on August 12, 2025, during an appearance on her boyfriend Travis Kelce’s "New Heights" podcast. The album, which is produced by Taylor Swift, Max Martin, and Shellback, will feature 12 tracks and is set to be released on October 3, 2025. Preorders for the new album are already available on Taylor Swift’s official website, with the vinyl costing $30 dollars, cassette $20 dollars, and the CD $13 dollars, because apparently Taylor Swift is into vintage. The new album follows her previous record-breaking successes, including her Eras Tour which generated an estimated $5 billion dollars in the United States, and her recent acquisition of her master recordings from Shamrock Capital.

👨‍💻 Tech

A few years ago Aaron Rodgers and actor Ryan Rottman co-founded a new sports startup called Online Sports Database, which they just rebranded as AthleteAgent.com. The company has raised over $5 million dollars in funding, and also received a $350,000 dollars grant from Google's Scale AI program. The platform aims to be a database for pro athletes and their agents, and offers access with a paid subscription model starting at $29.99 dollars a month. If that sounds like a similar model to IMDB for people in the movie and tv industry then you can see where this is going. 

🏡 Real Estate

Runwise, a New York based technology company, invented a hardware software platform to eliminate overheating in large buildings, and recently expanded to cooling. The company, led by cofounder and CEO Jeff Carleton, has received a total of $79 million dollars in funding after a recent $55 million dollars Series B funding round, and has collectively saved customers over $100 million dollars in energy costs. Now that’s hot!

🏀 Sports

A group led by Tom Dundon, owner of the Carolina Hurricanes, has reached a tentative deal to buy the Portland Trail Blazers from the Paul Allen Trust for a price reported to be over $4 billion dollars. The Boston Celtics were recently sold to a group led by Bill Chisholm for a record-breaking $6.1 billion dollars, and in 2023, the Phoenix Suns were purchased by Mat Ishbia for $4 billion dollars. Hopefully Tom Dundon can figure out how a way for the Portland Trail Blazers can get them into the playoffs more often than they did when they were owned by Paul Allen.

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irl Media NEWSLETTER is written, edited, and published by Chris Thompson.