Dave Bath, in comments, reckons we spend it on lipstick.

The New York Times and the Economist both suggest that that we spend more on lipstick when our finances tighten:

"Last month, Betsy Stein made a beeline for Bloomingdale’s to buy a shirt, but the top she found was $280. Ms. Stein told herself that in the current economic climate, she shouldn’t charge it.

“With the scare of the downturn,”