Think Taylor’s tour will tank the economy? You need to calm down

To quote the greatest living writer of our life and times, you need to calm down.

And just so we’re clear from the outset, the “you” I’m referring to here are the doomsayers who have been wringing their hands and ominously warning that in bringing her Eras Tour to Australia during a time of heightened inflation, pop sensation Taylor Swift is set to single-handedly bring our nation’s economy to its knees. Apparently, all it takes is three shows in Melbourne and four shows in Sydney. Who knew?

It’s time to dispel the lazy and misogynistic accusations that Taylor Swift is set to single-handedly bring our economy to its knees. Credit: Dionne Gain

As a refresher, the root causes for the inflation pain Australians are currently suffering through are – and I quote the Reserve Bank of Australia here: “supply issues related to the war in Ukraine; other global supply disruptions resulting from the COVID-19 pandemic; and domestic supply disruptions from poor weather.” I don’t know about you, but to me, that reads like Swift is not responsible for the day-to-day pain we were already feeling with or without her visit.

If it’s not already clear, I am unapologetically and quite proudly a Taylor Swift superfan – or what you might call a Swiftie. Though I appreciate her entire back catalogue, my favourite songs are Right Where You Left Me and I Know Places. I consider her decision to re-record her early albums and circumvent business deals that denied her the rights to her own music a business masterstroke.

And like every other self-respecting Swiftie, I’ve watched the video of her spontaneously changing the Karma lyrics to reference her boyfriend, Travis Kelce, live on stage more times than I care to admit (if you know, you know).

With that out of the way, you can rest assured that I’m not trying to convert you into a Swiftie. Really, I shouldn’t have to. If you don’t already get it, she’s not for you, and that’s okay (though I do feel sorry for you). But I am going to say this once and firmly: Taylor Swift will not contribute to Australia’s inflation problem.

Just as no one suggested we cancel the AFL Grand Final or Christmas to avoid upsetting the economy last year, this too shall pass.

Of course, any additional injection into the economy at an already volatile time comes with risk. And make no mistake, Swifties are spending big. This week, this masthead spoke to fans who estimated spending between $1500 and $8000 for Swift across concert tickets, accommodation, and merchandise.

If that sounds like a crazy amount of money to spend on one night of entertainment, consider this: last month, the cheapest ticket to the men’s final of the Australian Open retailed for just under $2000, while the most expensive for $5999 thanks to Ticketmaster’s “dynamic pricing” model, in which ticket prices are set by demand.

Meanwhile, over in Camp Swift, the cheapest Eras Tour ticket retailed for $65.90, while the most expensive was $379.90. Even her most expensive VIP ticket, which includes premium seating and limited edition tour merch, costs $1249.90, still considerably less than the cheapest men’s finals ticket option.

So why are people clutching their pearls and declaring Taylor Swift will be the downfall of capitalism? The short answer is that she’s a woman. Or rather that she’s a relatively young, self-assured and unapologetically successful woman.

With the Eras Tour set to make her a billionaire at 34, Taylor Swift has broken the mould of what we expect the super-rich to look like. For starters, she’s 33 years younger than the average billionaire.

Then, there’s the fact that just 12.5 per cent of billionaires are women, and perhaps even more significantly, she is one of the few female billionaires whose wealth is not inherited but self-made. Sure, there’s a very valid debate about whether the world really needs billionaires, but that’s not what this is.

It’s the same reason, in part, that some members of the Republican Party are currently blaming her for female voters turning away from them. Rather than interrogate the actions of, say, Donald Trump, it’s easier to blame Swift and her empowerment of young women.

It’s why she was repeatedly labelled as the largest individual contributor to carbon emissions through the use of a private plane, even though she’s not, without interrogating how many wealthy men use private travel for pleasure rather than business. And it’s why, had Kelce’s NFL team, the Kansas City Chiefs, lost the Superbowl on Monday, Swift would have been to blame, according to many.

Taylor Swift’s first Australian concert for the Eras Tour kicks off on Friday, February 16.Credit: Getty

Perhaps, to borrow a phrase from former prime minister Julia Gillard, gender explains some of the accusations Swift faces, but not all of them. Maybe it’s that we find it easier to attribute responsibility or onus to a single person as opposed to an organisation.

But even if that is the case, consider this: the NSW government estimates Swift will generate around $136 million across the state’s economic activity. Across the four days of her Sydney shows, that’s a daily economic injection of $34 million per day.

By comparison, the Australian Open put around $482 million into the Melbourne economy across 14 days in January, meaning its daily economic injection was $34.4 million. That’s almost half a million dollars more per day than Swift. And, unlike Tennis Australia (the governing body for the Open), Swift has never received a $63 million taxpayer bailout.

Just as no one suggested we cancel the AFL Grand Final or Christmas to avoid upsetting the economy last year, this too shall pass. Fans who have splurged in celebration of the Festivus of Tay Tay will pull back spending in other areas to accommodate for the one-off expense.

And we will, as Swift herself often says, shake it off. If we can shake off the lazy and misogynistic finger-pointing at women who dare to reach the top while we’re at it, all the better.

Victoria Devine is an award-winning retired financial adviser, best-selling author, and host of Australia’s number one finance podcast, She’s on the Money. Victoria is also the founder and co-director of Zella Money.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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