The article “Luxury Shame,” written by Johnnie Roberts describes how and why the rich are scaling back on their extravagant expenditures. Initially, I was annoyed and shocked at how the very rich were assimilating their unfamiliar experiences of “recessionary times,” with those that experienced the emotions of poverty. Roberts explains the ostentatious life of multimillionaire Michael Hirtenstein, who would routinely and openly show off his profitable real estate collection. After the economy took a turbulent downfall, Hirstenstein and other wealthy Americans began to feel the shame or embarrassment of flaunting their wealth. Despite the “halt” to the economy, Hirstenstein became frugal with his money, even though he could have easily bought whatever he wanted. …show more content…
Even luxury advertisers felt the burn after benefiting from so many years of growth. Conservatively, the times of reckless extravagance was over for many wealthy Americans, including Lehman Brothers CEO Richard Fuld and Steve Schwarzman of the private equity firm Blackstone Group. Unlike Hirstenstein, Jones described how Fuld and Schwarzman could only summon the look of pure embarrassment, when confronted by politicians and the press. Jones relates that the “Death of Luxury” not only affected wealthy Americans and advertisers, but also entangled Hollywood and Washington, D.C. with debt remorse. Julian Niccoli, managing partner of New York's Four Seasons restaurant declared that “It's very difficult to go downward... once Blades
Brian purchased the finest penthouse that his money could buy. After all, “I deserve it”, he would boast to friends. Expensive white Italian silk suits, alligator shoes, and a red Lamborghini sports car with license plates that read “MONEY” were his trademark. His penthouse apartment held a sweeping vista of the city along with elegantly appointed rooms, marble entry, a swimming pool and a sauna. Art work from the masters and rare collections were an impressive site to visitors. Brian had all the latest toys and electronics gadgets a young man could desire. A staff of servants cooked, cleaned and pampered him where ever he desired.
“.everyone is bored, and devotes himself to cultivating habits. Our citizens work hard, but solely with the objective of getting rich. Their chief interest is in commerce, and their chief aim in life is, as they call it, ‘doing business’” (Camus 4). Citizens’ unawareness of life’s riches and pleasures shows their susceptibility to the oncoming plague.
The Millionaire Next Door written by William Danko and Thomas J. Stanley illustrates the misconception of high luxury spenders in wealthy neighborhoods are considered wealthy. This clarifies that American’s who drive expensive cars, and live in lavish homes are not millionaires and financially independent. The authors show the typical millionaire are one that is frugal, and disciplined. Their cars are used, and their suits were purchased at a discount. As we read the book from cover to cover are misconceptions start to fade.
Some may be living the so called "American dream" and are financially comfortable, while others are extremely poor. However, what we primarily see in the media is the lifestyle of the extreme rich and famous. Wealth and fame can be seen anywhere on television, in the news and in magazines. This lifestyle may be unrealistic to many, but Americans are fascinated with money and lavish lifestyles.”
Recently, the recession has increased the wealth gap resulting in the rich getting richer and the poor to get poorer. This is an important issue facing society. As the poor and the middle class struggle for financial stability and wealth the top 1% of the rich continue to grow their assets. What is the reality of this issue? Is society’s perception of this issue accurate? How does one’s socioeconomic status influence success? There are many perspectives to this provocative topic and can vary when looking at them through an economical or a political lens. Often times, the wealthy are privileged with an unfair advantage over the poor.
In his article, Now That’s Rich, Paul Krugman discusses the state of the wealthy in America. He provides a critical account of the work ethic of the 1 percent, asserting that many of the country’s wealthy do not work in proportion to the money they have. He states, “The goal of [promoting the rise in college graduates] is to soften the picture, to make it seem as if we’re talking about ordinary white-collar professionals who get ahead through education and hard work. But many Americans are well-educated and work hard…Yet they don’t get the big bucks.” This claim illustrates a disparity in the economic system: hard work does not equate financial success. Krugman expands on this by explaining that wealth acquired by this group of people was only achieved because money they inherited. “These days a lot of top money managers’ income comes not from investing other people’s money but from returns on their own accumulated wealth—that is, the reason they make so much is the fact that they’re already very rich.” Krugman demonstrates a cyclical pattern of accumulated wealth, leaving no room for individuals of lower means to reach this status. Moreover, the advantage of the rich leads to a society that is “dominated by wealth,” and increases the gap between the rich and every one else. Krugman ultimately points out the hypocrisy of the rich’s resistance to increased taxes and asks his readers to think critically about how the rich arrived where they are.
The 80’s were a decade of great change. It became obvious that there was a widening between the classes. The middle class was disappearing and people took different approaches to dealing with this fact. One way of life that became synonymous with the 80’s was being a young, urban professional, or what people at the time coined a Yuppie. Due to the widening wealth gap, it became essential to market products as either upscale and downscale. Producers were forced to place their items in one frame of reference of the other, fancy of frugal. To sell items with the high price tag advertisers played on the yuppie habit of compensatory spending. Yuppies did not want to be confused with low class or middle class, so they spent in order to show their status to the world (Ehrenreich, 229).
The wealth inequality debate should focus on what public policies will aid the accumulation of wealth by more, not fewer, American families. The first step American’s need to make toward transforming our consumer culture is to understand it better.
What seems to go unnoticed by many Americans is the evident and growing wealth gap. According to Pew Research Center, the current U.S. income is at its highest since 1928. This large dispersion of wealth can be attributed by the “fall [of the] routine producers” (Reich). Where jobs that were once attainable during the 70s are declining due to advancing technology and corporations finding workers in poor countries who are willing to work at half the cost of the routine producers. What also drives this wealth gap is the power of corporations in an age of extravagant consumerism. Through media, the demand to buy what we want is unavoidable. Corporations are able to gain revenue while people go unemployed because of America’s vast opportunities to buy what we want when we want it.
The book I chose to review for this course is titled, “The Millionaire Next Door”, by Thomas J. Stanley, Ph.D., and William D. Danko, Ph.D. After learning that it was published in 1996, prior to the widespread availability of the internet, and subsequent ebusiness boom, I was slightly sceptical that the information held within might not be relevant for someone like myself trying to thrive in today’s chaotic economy. Fortunately, I was wrong. The Millionaire Next Door is full of concepts and principles that put into perspective how we view money and status in our society, and also debunks the myth that America’s wealthy are the ones doing most of the spending while living elaborate and carefree lives. There are several ‘takeaway’ principles that are presented to the reader. I will be focusing on the five concepts and ideas that impacted me the most.
During the Golden Age of Capitalism in America even the President enjoyed some leisure time. At the end of WWII the standards of living was up, unemployment was low and the American GNP more than doubled. The population boomed leading suburban living to become the norm. Jack Straus, the chairman of the board of Macy’s, declared “Our ability to consume is endless. The luxuries of today are the necessities of tomorrow.” This became the thinking of the time. Citizens lavished in the new life style of ease that a growing economy could now provide for the average, working, middle class person.
They do not wear expensive suits or live in a big house. Those who had a lot of money but spent it all on big, luxury items are called UAWs. A UAW is an “under accumulator of wealth” (Stanley and Danko 14). A good example of a UAW is the Great Gatsby. Gatsby owned a big house with a big pool. He invited hundreds of people over for parties every weekend. He drove a Rolls-Royce type of fancy car. Gatsby had hundreds of shirts, most of which probably had never been worn that cost thousands of dollars. On the other hand, a millionaire is a PAW, which is an “accumulator of wealth” (Stanley and Danko
Luxury goods are not the necessities but are very much desirable to people which is supported by a share of money income. They are not easily available and affordable for everyone but due to the coming up of competition in market this has been changed. Nowadays, every individual wants to raise their self high and wants to be different from everyone. Since, the times have changed luxury goods have become more affordable for middle class consumers. Whenever we open our social media accounts such as Instagram, snapchats or news on internet or be it the reality shows, it is full of rich people showing off their dresses, bags, accessories etc. Such news put an impact on our inner thinking about our need to look and feel good through rich possessions. Several manufactured goods have become luxury goods as they are designer, durable and better quality. These goods are considered as luxury goods by the consumers because they play a role of status and class for those who showcase or owns them. These items are not necessarily better than less expensive substitutes are purchased with the main purpose of showcasing their wealth. These kinds of goods are object of socio-economic phenomenon which includes watches, jewelleries, designer clothes and accessories, large
In a time of relentless materialism, America has become one of the largest growing economies in the world. With the growth of the rigorous economy, class divisions between the poor and the wealthy creates a further gap. Most Americans want to become rich so that poverty is not an issue. However, the poor classes pay attention to the little blessings each day that most upper classes do not. In solution to these problems, Pablo Picasso represents the American Dream for all classes by saying, “I’d like to live as a poor man with lots of money.” With increased materialism in America, rich Americans have forgotten the values of the important necessities in life. However, the tradition of Thanksgiving and spreading kindness in life help to develop
Fisman, R. (11 May, 2009). The real reason CEO compensation got out of hand. Retrieved from Slate: http://www.slate.com/articles/business/the_dismal_science/2009/05/comparison_shopping.html