The Law of the Skyscraper, also known as the Curse of the Tallest Building and the Lawrence Curse, means that there is a close relationship between the construction of the world's tallest building and the dramatic fluctuations in the business cycle, and that the construction of the world's tallest building is usually a precursor to the onset of an economic recession.

The construction of skyscrapers represents a new level of economic development for a country or region. The construction of skyscrapers requires strong economic strength and advanced technology, so the higher the building, the more prosperous the local economy and the more advanced the technology. However, the taller the building, the taller the building construction and the economic recession coincides again and again, let many people feel shivering.

Expanded Information

Deutsche Bank securities analyst Andrew Lawrence first coined the concept of a "skyscraper index" when he found that recessions or stock market downturns often occurred when new construction was being completed.

Lax government policies and optimism about the economy often encourage the construction of large-scale projects. However, when bubbles of overinvestment and speculative psychology threatened the economy, policies also shifted to austerity in response to the crisis, making the completion of skyscrapers a precursor to policy and economic transformation. This striking finding has been called the centennial pathological link: buildings built, recession. Hence, the skyscraper index is also known as the Lawrence Curse.

Baidu Encyclopedia - The Curse of the Skyscraper