Hiya. My name's Lily and I'm new to the board. Well, not really, I've been lurking for about three years.. anyway, this string caught my eye and I thought I'd respond because economics are sort of a hobby of mine.
"I decided to start a thread that discusses the economics of hobbying. In particular, I wanted to discuss the economic forces that support this business. The way I see it, the law of supply and demand still dictates the rates that agencies and indies charge. But what we do not understand is how these forces interact to change the rates throughout time."
Yes, good point. Supply and demand. The fact is, Canada is going through a very good economic period. Ten years ago the average person had to beg and scrape for a job here in Montreal. Engineers with 10 years of experience made 10 bucks an hour, if that. But now I can find a job making $40k relatively easily, even if I only achieve basic-receptionist status, a cool easy 40k and two weeks paid vacation, plus medical and dental, often enough. Sex workers make about $50k a year, no medical, no dental, we take many chances with our health, our safety, our mental wellbeing, and our personal relationships. And, yes, a lot of sex workers have serious drug problems (which is just escapism), and that costs quite a lot too, if you've got the habit. For many women it's becoming easier to be a receptionist than it is to be a prostitute anymore. So, the supply is dwindling. So is the demand from <b>U.S.</b> markets, but international demand is growing, especially in Canada, and particularly in Montreal.
"From the looks of things, we are heading into a mild to moderate recession in the U.S. and subsequently Canada. Interest rates have risen a lot from historically low levels and it's starting to impact the housing and condo market. It will also impact home equity withdrawals and consumption, which will be negative for the whole economy."
I would have to disagree with this point, however. The economies of Canada and the United States <i>are not synonymous</i>. The U.S. is in a recession as we speak, but Canada is not and will not be heading into a recession any time soon. Why? Because the U.S. is no longer Canada's most important trading partner. China is swiftly taking the U.S.'s place, and they are a billions-person-market. China's got lots of people, and subsequently a larger economy than the United States could ever dream to have. In order for the United States to compete with population of China they would either have to start procreating like absolute MAD, or they'd have to let BILLIONS of immigrants into the U.S.. Canada already emigrates a large number of Asians (and many other nationalities). We're doing a'ight.
Secondly, Canadian interest rates have only risen slightly, in conjunction with GST recently being lowered from 7% to 6%. A whole point down. Not bad, gotta give it to Harper. Also of note, tourism to Canada over the past few years has skyrocketed. I've seen more tourists in the streets of Montreal this summer than I've seen in over ten years. Also, we were the first city to hold the Outgames, which also boosted out tourism enormously this summer. This boosted Montreal's sex work industry across the board.
"Now, what would you expect in this type of environment? You would expect the supply of SPs to increase and the demand for SPs to decrease. That's what the economics textbooks tell you."
Maybe this applies for U.S. sex workers, because of their current economy.. but then again, if the United States became cheaper to visit, and if people from other parts of the world were less afraid to visit (frankly), the U.S. tourism market would also boom, which would create jobs for many. When I was a kid I didn't see the United States are such a bad place to go but over the years, yeah, I don't like to travel to the (southern) states because I find the people plain ol' mean. Hopefully the U.S. will be able to pull themselves out of their recession before it gets out of hand.
"But it isn't that simple. Some hobbyists are richer than others and they'll continue paying HDH rates no matter what. But if LDL ladies offer similar or even better service at lower rates, then why bother with HDH?"
True. Why bother with HDH? Unless your company is paying the tab. Most wealthy honnyists write it off as a business expense and will stick to a major HDH firm because they have easy ePayment methods (they can be set up as a monthly vendor on the company books). Hobbyists with more moderate lifestyles generally can't write escorts off on their expense reports, unless they're senior executives.
"I only bring this up because the McMansion market (houses over $1 million) in the U.S. is dying quickly but lower priced houses are still selling well. I also think that HDH agencies are charging outrageous sums for what they're actually offering. For me, I get very weary of paying more than $400 for a 2 hour encounter, especially when it's an indy that takes it all. Think about it for a second: does a neurosurgeon make $200 an hour clear in Quebec? Maybe but I doubt it. As much as I love being with someone, my threshold is $500 for a 2 hour encounter and I have even asked myself if that is worth it too."
As for McMansion, they're like McDonald's.. just the flavour of the month. They have marketed themselves as a flavour of the month, and so they are. Now they have to start marketing themselves as a legacy rather than an impulse buy and then they'll get the steady clientbase rather than the flash client base.
I would agree that most HDH agencies are overpriced at $500 for two hours, unless, like I said, they're <i>real</i> quality. Personally, show me a sex worker who's gorgeous, highly intelligent and articulate, who has excellent taste and class, who is positive and encouraging and compassionate, a sex worker with a <i>soul</i>, and I'd pay top dollar for their services. That individual is worth the cost. A woman (or a man) who puts everything of themselves into their work, and does good work, is worth more than the person who does the bare minimum, and produces bad work.
"The winds of fortune are shifting and I believe we are going to get a lot more supply and a lot less demand for SPs. In this type of environment, it's hard to see rates going up and the high end agencies and indies will need to rely on their regular clients to survive."
You're right, the winds of fortune <i>are</i> changing. I've noticed some swift changes in the global sex industry at large. Prostitutes are becoming more socially acceptable, and so is sex is in general. Fifty years ago no one in the right mind would talk about, say, polyamoury or swinging at the dinner table, especially in front of their kids. But now people are talking about sex, having sex, having multiple partners, being with multiple genders, it's all out in the open, even in Christian circles. I recently heard about a Christian sexual health class being taught at a church.. can't cite it, I heard it on the news. In any case, sex has gone mainstream.
Nice to meet you all!
I am already getting fed up of the whole scene and that is why I am seeing fewer and fewer ladies. 
