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Yes! Many wealthy people choose to do just that. What you decide to think about them says more about you and your values than it does about them and their values.
Not choosing to spend on new cars or expensive clothes does not mean you are poor. Choosing to spend on new cars and fancy clothes does not mean you are wealthy.
You missed the point and probably did not read the article. The assumption is that if you aren't a "try-hard" then you must be privileged. I don't care what rich people do, they aren't the ones claiming victimhood and twisting it to blame the system for their irresponsibility.
You missed the point and probably did not read the article. The assumption is that if you aren't a "try-hard" then you must be privileged. I don't care what rich people do, they aren't the ones claiming victimhood and twisting it to blame the system for their irresponsibility.
What was your point being as I missed it? I did read the article. I’m in no way supportive of a system that encourages a victim mentality or forces other people to pay for the consequences of someone else’s decision making.
I don’t get the mentality that makes someone feel good about themselves because they have the latest iPhone and a new Dodge Charger which they park in front of their public housing unit. I identify with the person who chooses to drive an old car but doesn’t have to and who does not care what anyone else thinks about it. Society has failed if folks think impressing others is more important than supporting their own children. There seems to be a lack of pride these days. Or rather it is quite misdirected.
Thank you. This definition of luxury puts the study in context. Too much of this thread rails against the spending habits of the lower classes with little understanding of what Deutsche Bank's report actually reveals.
What does Deutsche Bank"s definition of it have to do with anything?
A necessity is something that you require to survive.
A luxury is not.
If you are spending money on things that you don't require.....then you're not really that poor.
What does Deutsche Bank"s definition of it have to do with anything?
A necessity is something that you require to survive.
A luxury is not.
If you are spending money on things that you don't require.....then you're not really that poor.
The Marketwatch article the OP linked cites a Deutsche Bank study that uses a very specific definition of luxury, which people are ignoring in their rush to condemn the lower class.
The Marketwatch article the OP linked cites a Deutsche Bank study that uses a very specific definition of luxury, which people are ignoring in their rush to condemn the lower class.
Again,
Other than it's the article used by the OP...
What makes Deutsche Bank's definitions relevant?
Necessities and luxuries have very plain and simple definitions that don't need to be changed, twisted or expanded upon in order to gain sympathy for a particular position.
What does Deutsche Bank"s definition of it have to do with anything?
A necessity is something that you require to survive.
A luxury is not.
If you are spending money on things that you don't require.....then you're not really that poor.
They're economic definitions and layman definition.
There is no Deutche Bank's definition. They're just using the economic definition of a luxury good. If you spend proprotionally more on something the more you earn, then that is a luxury good. An example might be vacations. If you make $20,000 a year you probably spend about none of it one vacations. At $100,000 though you might spend $4,000. At $250,000 you may spend $15,000. At least over that income range, vacation is a luxury good. Jeff Bezos, however, probably spends proprotionally less of his income on vacation than someone making $100,000 a year does. It's just hard for the richest people in the world to spend enough on vacations to compete with the middle-class.. Bezos probably takes very luxurious vacations. I can't imagine he spends a lot of nights in Motel 6. But at that income level the penthouse suite has ceased to be a luxury good by economic definitions. Proprotionally it costs me a lot more to crash in a Motel 6 than it does Bezos to crash in the $2,000/night suite.
Again, it's not so much about Bezos but it's likely that penthouse suites just are not luxury goods. The people choose to stay in them are simply so wealthy that spending $2,000 a night on one is less proprotionally than what the middle-class spends when they stay at a Comfort Inn or Best Western. The Ritz penthouse is luxurious (layman definition), but unlikely an actual luxury good (econoic definition).
Necessities and luxuries have very plain and simple definitions that don't need to be changed, twisted or expanded upon in order to gain sympathy for a particular position.
Tell the OP, and tell the writer of the article the OP linked to start this thread. Or better yet, if you don't like the fact that this thread is discussing something you don't want to (like the Deutsche Bank study that precipitated this entire thread) then go start a thread that has to do with what you believe and accept as necessities and luxuries.
The Marketwatch article the OP linked cites a Deutsche Bank study that uses a very specific definition of luxury, which people are ignoring in their rush to condemn the lower class.
This! It has really has nothing to do with the poor as far as this thread goes, but something deeper that will vary for each person casting their worldview.
Great points. If it's not food, utilities and the very basics of clothing it would be considered a "luxury".
I suspect much is spent on kids too.
I did grow up in a low income household. No one is exempt from the social pressures to dress a certain way regardless of income. In the late 70's/early 80's if you weren't wearing the latest Nike tennis shoes in my school you may as well not show up. Everyone would make fun of you if wearing a cheap off brand. We saw it as a "necessity". I bugged my dad relentlessly until he finally gave in. I know now as an adult he must have put it on a credit card as we couldn't afford them.
The same goes on today but even worse. Now the kids expect the latest electronics and iPhones. One of the janitors at my work talked about picking up extra temp shifts so she can buy her kid an Apple watch. Regardless of income the pressures to have these things are there for everyone.
yet interestingly, as a middle class white kid, I had not only none of those, but was taught to withstand the peer pressure to evaluate my self-worth by such measures.
It's funny, in a not haha way. I had a part-time job, as a white kid. After 6 months, I spent about 1/2 my money on a very nice Nikon camera (pre-digital era). I could have bought 5 pairs of Air Jordans for what I spent.
Don't get me wrong - NOW my kids get 1 pair of new sneakers of their choice < $150 in August. But that's their shoes for the year. In my social circles, it's about whether the kids gets a brand new $35K+ car or not, which mine have not.
The Marketwatch article the OP linked cites a Deutsche Bank study that uses a very specific definition of luxury, which people are ignoring in their rush to condemn the lower class.
The study uses established Econ terms. Nothing new or groundbreaking.
In Econ terms, a luxury good is one where our spending on such item goes up as a portion of our income as our income increases. For example, ultra-speed fiber optic broadband instead of landline dial-up modem internet, organic luxury coffee shop cappuccino instead of a cup of coffee from the drip coffee maker at home, a $200,000 Hermès Birkin handbag instead of a cheap $20 imitation look-a-like from the discount store. Etc.
A necessity good is something needed for basic human existence. Think: basic food, non-designer clothing, basic shelter.
More info on the respective terms analyzed in the study:
Examples of different types of goods
Luxury good – Superfast broadband, organic luxury coffee, Netflix TV Streaming, Porsche, a foreign holiday to Bali
Necessity good – something needed for basic human existence, e.g. food, water, housing, electricity.
Normal good – ordinary broadband, ordinary tv license, Ford Focus car, holiday to somewhere close to where you live
Inferior good – Supermarket own brand coffee, bus travel, a day out at theme park.
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