CONSUMERS

Luxury Shame

Why even the very rich are cutting back on conspicuous consumption.

By Johnnie L. Roberts | NEWSWEEK
Published Nov 29, 2008
From the magazine issue dated Dec 8, 2008

« Return to Article

Discuss

Member Comments

  • Posted By: Gregory Gregory @ 02/14/2009 11:29:26 AM

    Communism gets it's start by demonizing the rich, this allows those who fear competition, to get started in figuring how to take money from those who earned it, until what???, they are broke also??/ ALL FAILED IDEAOLOGY BLAMES SOMEONE ELSE FOR THEIR FAILURES. Keep America Great.

  • Posted By: TruthForward @ 02/10/2009 9:54:26 AM

    Luxury Shame is the reason the McCain's spent so much on the Palin wardrobe.

  • Posted By: A_sun_of_Liberty @ 02/09/2009 4:12:19 AM

    The Sons of Liberty have been buried in a history written by the rich, but they are rising again. When the stamp act was written in 1765 they were already grumbling about the Hudson Bay and East India Companies restricting trade unions and driving small business out of business. The tax on tea was the final straw. As they (The laborers, the small shop owners, the farmers" gathered and to their fight to the rich, so it will happen again. That is why all the wonderful media, "owned by the rich" keep writing that no one will do anything. They are scared to death that we will. They try an fool everyone into thinking they are the only ones thinking the greedy Republican rich need to be reminded of the consequences of their actions in crushing the hopes of our children's futures. They must be made to feel the consequences as we do. We fear for our jobs, our homes, food on the table. Lack of affordable health care is a death sentence to millions in America. When the pampered and privileged, the powerful know fear, they might begin to act human. But they won't do so willingly. \

    A home a piece of land, safety and security. Why does someone need TWENTY BILLION DOLLARS in the bank? They don't spend it. The only trickle down we get is yellow and warm. What could one person possibly due to reasonably earn FIFTY MILLION in one year? Nothing, it is obscene.

    The truth is, that we reward sociopathic behavior by promoting ruthless and corrupt people to positions of power. Most successful CEOs are crooks, cheats, and cruel people who care nothing for those who they make slave for their grandeur. Not all, but most members of the boards of directors are directly or indirectly are responsible for the suffering and despair of tens of millions of people in America, and Billions around the world. Some are good, but most just play at being kind. They wouldn't lift a hand or risk getting dirty to help anyone.

    The Suns of Liberty are rising again, are you one?

  • Posted By: A_sun_of_Liberty @ 02/09/2009 4:09:06 AM

    The Sons of Liberty have been buried in a history written by the rich, but they are rising again. When the stamp act was written in 1765 they were already grumbling about the Hudson Bay and East India Companies restricting trade unions and driving small business out of business. The tax on tea was the final straw. As they (The laborers, the small shop owners, the farmers" gathered and to their fight to the rich, so it will happen again. That is why all the wonderful media, "owned by the rich" keep writing that no one will do anything. They are scared to death that we will. They try an fool everyone into thinking they are the only ones thinking the greedy Republican rich need to be reminded of the consequences of their actions in crushing the hopes of our children's futures. They must be made to feel the consequences as we do. We fear for our jobs, our homes, food on the table. Lack of affordable health care is a death sentence to millions in America. When the pampered and privileged, the powerful know fear, they might begin to act human. But they won't do so willingly. \

    A home a piece of land, safety and security. Why does someone need TWENTY BILLION DOLLARS in the bank? They don't spend it. The only trickle down we get is yellow and warm. What could one person possibly due to reasonably earn FIFTY MILLION in one year? Nothing, it is obscene.

    The truth is, that we reward sociopathic behavior by promoting ruthless and corrupt people to positions of power. Most successful CEOs are crooks, cheats, and cruel people who care nothing for those who they make slave for their grandeur. Not all, but most members of the boards of directors are directly or indirectly are responsible for the suffering and despair of tens of millions of people in America, and Billions around the world. Some are good, but most just play at being kind. They wouldn't lift a hand or risk getting dirty to help anyone.

    The Suns of Liberty are rising again, are you one?

  • Posted By: modoquasi @ 02/08/2009 9:27:57 AM

    The rich are feeling luxury shame????? Oh puhleeeeze, tell me you're not THAT stupid.

  • Posted By: mikeydidit @ 01/27/2009 2:57:55 PM

    Well damn! I guess all those years I put inot building my business and making a foirtune doing it mean I have to not buy something for myslef or my family? I don't think so. I grew up dirt poot, the oldest of 12 kids, a Ada that went on welfare when he was 40 and man was it hard. I went to work at 13 helping support the fam. I started my business in 1978 in one of the worst econ climates ever and have strived, survived and made it without borrowing money from freinds, parents or fat asses at the banks. Now I have money to spend and ii'm supposed to give it to someone who wants a freebie hand out. Well try and get it from me. You'll have to pry it from my cold dead hands. Now...I'm going out and buying my wifey aan expensive 33rd wedding anniversay gift...A brand new gas guzzling Suburban!!!! I ove this country USA rules!!!! MikeyC

  • Posted By: gopack123 @ 01/22/2009 6:05:40 PM

    OBVIOUSLY THE OBAMAS HAVEN'T READ THIS ARTICLE AS THEY JUST WAISTED $140 MILLION ON AN INNAUGERATION PARTY. MICHELLE OBAMA HAD THE AUDACIYT TO FLASH A 10 CARAT DIAMONE RING AND DRIPPING WITH DIAMONDS DURING THE INNAUGERATION. WHAT YOU SAW IS THE ELITIST ATTITUDE THE OBAMAS HAVE. GET USED TO IT MIDDLE AND LOWER CLASS, THIS IS HOW THEY LIVE AND YOU'VE ONLY SEEN A SMALL TASTE. ELITISTS FOREVER STICK TOGETHER.

  • Posted By: rk@affluenceresearch.org @ 12/28/2008 8:51:14 PM

    The sale of luxury goods and services, as defined by the majority of America???s affluent, is not subject to much change in 2009, just as it has not shown much change over the past 30 years. In fact, there is little evidence that the affluent, who typically pursue middle class values and lifestyles, are showing any shame about their purchases or major long term trend changes in their spending patterns and attitudes. They have never been ostentatious or conspicuous consumers. They have been careful shoppers (and savers) who look for quality and value in their purchases, the brands they buy, and the stores where they shop.

    New ground breaking research among the wealthiest 10% of US households by The American Affluence Research Center provides great insight as to how the affluent define ???luxury???, a very ambiguous word, by price points and brands for 37 products.

    While luxury retail and marketing consultants have fed the media with anecdotal research about the sales of $700 women???s shoes, $1,000 hand bags, and $300 jeans as though such sales are common place, the affluent women in the AARC survey report they are more likely to spend less than $120 for nice shoes, less than $100 for a purse for every day, and less than $75 for a pair of women???s jeans.

    The survey highlights and 8 major implications of the research. can fe found at www.affluenceresearch.org

    The sales of the ???true luxury??? products are produced primarily among international ???new rich??? consumers and by a small segment (about 10%) of the very wealthy in the US (the professional athletes, entertainers, top corporate executives, Wall Street bankers and attorneys, real estate developers, and employees of newly public companies).It is among this latter group of US affluents where there may be some reduced spending for reasons of discretion.Of course some of that could be a rationale for reductions necessitated by big hits to their compensation and net worth.

    rk@affluenceresearch.org








  • Posted By: chrismarshva @ 12/23/2008 6:22:30 PM

    Sometimes there is something called power that rich people have that the rest of us don't. They can tell you what you earn and if you don't like it scram. Power then allows them to get more ,money and money maintains their power. The power part is the part I don't like.

  • Posted By: chrismarshva @ 12/23/2008 6:07:01 PM

    Lobbyists can make Representatives and Senators a little (or a lot) richer, can't they?

  • Posted By: floridagrandma @ 12/02/2008 12:44:46 PM

    Let's look at "wealthy"! There are different kinds of wealthy. We have those who use their "genius" to build their wealth (B Gates, D Trump, etc). Good for them! It's their's. They have a right to spend it, invest it or give it away. There are those who inherit wealth. Lucky them! It's their's. They have a right to spend it, invest it or give it away. (If I were rich, I'd leave mine to my kids, too). And we have Hollywood! The rich and famous with their grand salaries! Then there are those who get wealthy by landing executive jobs at companies run by greedy executives who construct outrageous pay scales whereas the executives and brown-nosing sidekicks are given obnoxious salaries. But again, it's their's. They have a right to spend it, invest it or give it away. But the government has NO right to take it away and use their own agenda for how, where or who should get it. And speaking of obnoxious salaries, look at the pay scale of the government officials! Now who you going to blame?.. The lucky son-of-a-gun who lands the big paying job, the manipulating bureacrats who construct the pay scales or maybe even yourself! Every time you go to the movie or buy that DVD you just gotta have, you're contributing to the "wealth" insanity. Hey, I'm poor. But, what the heck??? I want the new DVD.

    • Posted By: lngreene @ 12/09/2008 4:53:03 PM

      Yes, let's look at the payscale of government officials. The highest paid official in the land is the president, at $400k a year. Next closest would be the vice president, speaker of the house, and chief justice of the supreme court at $212k a piece. Most House and Senate leaders make $165K. Not exactly wealthy millionaries, are they?

  • Posted By: sebs112 @ 12/08/2008 12:48:52 PM

    I don't think the rich need to feel guilty about their fortunes...unless you're one of the execs holding out your hand for a government bailout. Our economy needs them to spend as much money as possible before we collapse entirely.

    And they don't need to buy the American public anything as many families in "need" put themselves in that situation by spending money they didn???t have. Learn to read before you sign your life away on a 5/1 ARM or rack up the credit card bills. The rich give more to charities than the poor and middle class. Therefore, work to pay for your own hybrid and stop looking for a handout.

    For as much as I'd like to blame companies for outsourcing jobs, whose fault is it really? Ours. Why? Because we demand cheap, inexpensive products that American manufacturing just can't give us. Keep shopping at Walmart instead of at your local mom and pop shop and we'll keep digging ourselves into this hole.

  • Posted By: Anna E. @ 12/04/2008 5:10:08 PM

    The rich should take some of their millions and buy American hybrids for families in need....not withhold cashflow from an economy in need of stimulus.

  • Posted By: scottnatural @ 12/02/2008 6:48:05 AM

    I grew up in a Wisconsin farm family and only had two pairs of pants and two shirts to wear to school for a whole year. BY getting an engineering education and later medicine and surgical training I was able to elevate my standard considerably. By paying attention to how the "rich" made thier money I was able to springboard my families net worth beyond my imagination or expectation. I read this article becasue I realized I was feeling some shame. I'm giving more to charity but I'm still flying first class and living a very comfortable and happy life. It wasn't good fortune or good luck, it was pure simple hard work and years of consistent effort. My advice to the angry bloggers (or whatever you call yourselves) is to step away from your computer and engage in some activities that further your financial situation.

    • Posted By: McLovinB @ 12/02/2008 9:31:42 PM

      Well said Scott. My situation is similar.
      I am often tempted to think not that I am special, but that anyone could do what I did. It is absolutely true. And your advice is good. I wonder if it is sufficient.
      My thinking about all this is that probably you and I would not want to give more of what we have to help people who will not help themselves, but you would probably be the first to admit that you have had bad luck along the way, and that things could have worked out a lot differently for you. Being who we are, we probably could have worked things out anyway, but.... a lot of people really need help, just now and again.

      I wonder how many more people could find success if there were more accessible health care, better earlier education, safer communities, and just a generally better social environment.
      Maybe you have travelled to other countries. Because of that, you know that such a society is possible. I wonder how much of what you have would you be willing to give up to make a better society?

      To my shock, I find that many successful Americans give very very lowball answers to that question, or they dodge it by saying, well X wont do it, so I wont. For instance, a 50% income tax rate might not even take away your first class plane tickets, but you would not accept it, would you? I would. I would give up television and movies entirely to live in a better society. I would give up my car. The people in the article would give up nothing. Would you? You seem relieved that you made your sacrifices and got to where you are. Other people are having this chaos thrust upon them as they are right in the middle of their struggles. I feel bad for them a little. Like you, I am in the business of helping people, so I will just work harder.

      I find that most Americans --rich and poor-- are not willing to make sacrifices or changes in their own lives to make a better society that provides better opportunities and outcomes. Until that changes, the situation will not improve. Keep telling your story. It is a good one and it is important because it creates a bridge between the classes, as they have come to be. Give more advice to people. I do. After all, we were just ... well... are just... normal people.

      • Posted By: VirginiaVoter @ 12/04/2008 12:47:04 PM

        Excellent comment.

  • Posted By: commonsense_01 @ 12/04/2008 12:35:52 PM

    Why is no one addressing the millions of jobs shipped to Mexico and China among other countries as the source of this whole mess. For all you well educated business leaders and government employees it is flamingly obvious to the rest of us that no economy can work without jobs, and when they are given away wholesale to the rest of the world and all our national wealth along with them, the obvious is and has happened. The government leaders we have elected to look out for our interests have thrown away our economy with both hands. Along with the wise and all knowing coporate leaders. Where in hell has common sense gone?!!!

  • Posted By: 1easylay @ 12/04/2008 10:58:33 AM

    My God.........................my heart's bleeding.

    I wish I had their problems.

  • Posted By: nickgr @ 12/03/2008 6:38:11 AM

    Some commentators don't even know basic economics.

    It is the SUVs,the McMansions & the luxury items which bring profits to companies & jobs to workers.

    Cheap items r frequently sold at minimal profit or even at loss...

    • Posted By: Forty4 @ 12/04/2008 8:29:20 AM

      Correct.... look at what's "made in China".

    • Posted By: McLovinB @ 12/03/2008 5:26:16 PM

      SUVs, McMansions and luxury items are not productive and do not increase productivity. Real wages cannot increase without productivity gains. You know that. The people who purchase those things will not add to the economy by buying them. The people who make those things might earn profits, but they will use those profits to make more things that are a drag on the economy.
      It is a losing proposition all around. It is a waste of resources.
      What do you think about people going to medical school and becoming plastic surgeons instead of emergency specialists, pediatric surgeons, or general practitioners? How does that make society better? Maybe you see the problem. It all makes sense until you wake up in a society with a few beatiful people and a lot of sick ones.
      Also, what you call "cheap" items are often VERY productive and VERY profitable. Some examples might be small trucks, networked computers, pocket calculators, post it notes, LED lighting or compact flourescent lighting, and dictionaries.
      The article is about CONSPICUOUS consumption, not consumption. CONSPICUOUS consumption is, by definition, not productive in any way. It is done for the purpose of showing others something about oneself. Now, an economics education is not necessary to understand that. A dictionary would be enough.

    • Posted By: summer4077 @ 12/03/2008 12:20:57 PM

      Not true. Those items bring temporary profit to companies until the bubble bursts, then those companies are hurting. Well, the actual workers who made those products are hurting. The fat cat CEOs with no soul are still sitting pretty. America wasn't founded on greed and extravagance and it is NEVER sustainable. Look to the gluttony and spending of the 1920s....seriously, it's so similar it's eerie. Basic economics is this: don't spend more than you have.

    • Posted By: bllyness @ 12/03/2008 11:33:38 AM

      Then ask yourself why we started losing jobs and companies stopped making profit BEFORE the wealthy started to feel shameful?

  • Posted By: bunchfam @ 12/02/2008 11:26:44 AM

    The wealthy should be ashamed of themsleves, they work hard behind a desk, not out breaking a sweat in 90 degree heat or freezing during the winter months. My husband and I have worked hard also, not behind a desk or computer raking in the big bucks, but with back breaking 15 hour days. My husband has a congenital heart disesase and still manages to work 15-16 hour days, just to make a mortgage payment. We have now filed bankruptcy to cover our living expenses and medical bills. i don't see myself ever going on a luxury spa retreat. How is any of this fair? Where was the government to help me when I needed it? They were a little too late to help save me, but maybe there are some people that can be helped. The government needs to think about who keeps this country going. Not the person spending on a luxury car, but those that spend on the little luxuries such as groceries!!!

    • Posted By: T-in-Texas @ 12/02/2008 11:48:39 AM

      Maybe you and your husband should have sought out another line of work. CHOICES people!!! My husband worked construction for a few years before deciding it sucked and then put himself through college. The way I see it, the government has helped you out-you were able to file bankruptcy in order to erase your debt, and you've left your creditors holding the bag.

      • Posted By: bunchfam @ 12/02/2008 12:07:15 PM

        Maybe you should look up the banruptcy laws before you post a comment- I have left no one holding the bag. I don't think being a nurse or a plumber are jobs that suck. Remember your comments the next time you are sick or need your flooded basement fixed.

        • Posted By: T-in-Texas @ 12/02/2008 1:16:28 PM

          Will EVERY penny of your debt be paid back? Being a nurse or a plumber is a very noble profession so you shouldn't complain about it not being "fair". In fact, my brother is a RN and never complains about his choice. The part that sucked for my hubby was the heat and cold in Texas, not the profession of construction. The next time you care for someone ill or fix their plumbing, I hope they're rich. You wouldn't want the check to bounce. FYI-not many basements in Texas.

          • Posted By: bunchfam @ 12/02/2008 2:38:05 PM

            I don't recall saying that my job was unfair nor did I complain about my job, but you assumed that I had a job that was below your standards and that I had a choice to make it better for myself. You're right, I do have a choice, but the profession I chose was out of the compassion I have for the ill, not for the money. I made the financial choices that have bogged me down, and I will be paying back EVERYTHING. I think you are missing the point of all of this-the greed on Wall St. got this nation into this mess and they need to get us out. I have worked hard for what I have, have never used the government to help make me a "better person" because I made too much money at the time. So I have struggled just as much as the you or the next guy, on top of my husband having health problems which has contributed to our debt. Quit defending the wealthy and come down to my level, where the true Americans are!!!

            • Posted By: T-in-Texas @ 12/02/2008 3:55:43 PM

              Sorry, I won't stoop to the level of crying foul just because someone has more than me. That is NOT where the TRUE Americans are. True Americans work to improve their standard of living if they are dissatisfied with it. You were the one who said the wealthy should be ashamed because they work behind a desk not out in the heat. Really? You cried "unfair", we work 15 hour days, no spa treatments, etc. No, your job is not below my standards but your attitude is. You chose the profession, be happy with it. If not, change it. Stop blaming the wealthy, they had nothing to do with your situation.

              • Posted By: bunchfam @ 12/02/2008 4:24:15 PM

                Where did you ever assume that I was unhappy with my profession??? I am very satisifed with my life and job, but only dissatisfied with the dishonesty that many of the wealthy have displayed at the expense of the american people. I have worked hard to get what I have, while many of the truly wealthy preyed on the common americans. As long as you continue to defend the dishonest, it makes you no better.

                • Posted By: cleoj @ 12/03/2008 1:52:45 PM

                  bunchfam, perhaps you should read your own comment. The entire paragraph sure seemed like a complaint to me.

                  • Posted By: bunchfam @ 12/03/2008 5:01:39 PM

                    Isn't that what this comment board seems to be exhuding. Everyones complaints about the rich? Sorry for exercising my right to complain, as everyone else has.

Reply

Report Abuse

Enter comments if any for reporting abuse