Nightlife: The forgotten new economic stimulus
Xn Iraki
By
XN Iraki
| Dec 04, 2024
The owl is not alone at night. Many nightspots become active after nightfall. We hear regular complaints over loud music at night. Rarely during the day time.
In most towns, certain streets are known for nightlife. The problem is its association with negatives like prostitution, drugs and alcohol. Economists probably see things differently. Such life extends consumption, a major contribution to economic growth, often more than investment.
In some countries like the United States (US), they stimulate the economy with bi-weekly payment for employees to ensure continued consumption.
Why can’t we copy this payment model just as we copied their constitution with senators and governors? Why should we be broke in mid-month yet we have worked?
Remember when the 24-hour economy was the in-thing with several supermarkets open? Give credit, many factories in Kenya open 24 hours. Nightlife should be defined broadly to include “real“ economic activities not just clubbing and associated activities.
We do not just run the business at night.
There must be demand, the economy must be growing. This takes place when people are confident about tomorrow.
They could even consume what they do not have or expect. Remember salary advances and debts? Our sentiments play a bigger economic role than we think.
We can use nightlife to gauge economic growth. More night life, read entertainment could indicate we have disposable income, hopefully got through hard work not corruption or deals.
It could also mean the economy is doing so badly that we want to drown our sorrows.
Americans are more attuned to economics of nightlife than Europeans. One German argued that opening more hours could be counter-productive, raising the costs with more labour with demand remaining the same. A 24-hour economy is subdued in Europe.
We could argue that the “soft” nightlife, dancing, clubbing and the related activities take advantage of our “unreasonableness”. We think differently at night because of our circadian cycle. Most social places supplement our unreasonableness with loud music or bright lights. Do you find that in five star hotels?
The economic truth is that time is a factor of production. Extending it by working late into the night or consuming into the night makes economic sense.
On a personal note; night life allows you to understand a country better, if a visitor. Could that explain why nightlife is so popular with tourists?
Long Street in Cape Town is famous for nightlife and I was told sexual freedom. We sampled it one evening in a group. The joint we visited did not offer wine, in South Africa? Can you guess why?
When did you last partake in night life? Was it soft or hard (working)? Talk to us