While Many Americans Struggle to Pay for Food, the Rich Are Back Buying $2495 Pairs of Boots
-Blogged by Mark Karlin on Buzzflash
August 9, 2011- The demand economy has collapsed for the vast majority of Americans. Jobs have been lost, wages have stagnated and the buying power of all but the wealthy dramatically reduced.
But if you are super-rich, according to an August 4 New York Times article, you "are (almost) spending like it's 2006: luxury goods are flying off the shelves, even with the economy staggering."
If you want to walk in the shoes of the ultra-wealthy, it will cost you a few weeks' wages (if you are lucky enough to have a job). According to The Times, "In 2008, for example, the most expensive Louboutin item that Saks sold was a $1,575 pair of suede boots. Now, it is a $2,495 pair of suede boots that are thigh-high."
While most of America struggles with the basic costs of living, even delaying medical care because of high health insurance deductibles (for those who have medical insurance), the rich are on a luxury item buying rampage. According to the Times:
Luxury goods stores, which fared much worse than other retailers in the recession, are more than recovering - they are zooming. Many high-end businesses are even able to mark up, rather than discount, items to attract customers who equate quality with price....
The luxury category has posted 10 consecutive months of sales increases compared with the year earlier, even as overall consumer spending on categories like furniture and electronics has been tepid, according to the research service MasterCard Advisors SpendingPulse. In July, the luxury segment had an 11.6 percent increase, the biggest monthly gain in more than a year.
With the ongoing DC subsidies of the most affluent Americans through tax cuts, America has moved closer to the class and income gaps that characterize third-world nations.
To paraphrase an old Nancy Sinatra song, "These $2,495 boots are made for walking, and one of these days these boots are going to walk all over you."
They already are.