keeping the economy honest

A $45,000 handbag is silly only if you’re poor.

This fabulous Louis Vuitton Tribute Patchwork Bag is priced at $45,000.  For $45,000, it doesn’t organize its content automatically or have a GPS tracking system in case it gets stolen, assuming the thief is discerning enough.  You know you want one too.  If you don’t and think it’s frivolous, it’s only because you’re not rich enough.

Ok, I have no problem with people spending their own money anyway they want.  I couldn’t care less if they want to pay $45,000 for the boulder in my backyard.  However, when people have undeserved wealth, they start to spend it frivolously, which I would do too if I was that rich.  But this is bad for the economy, because they support much unproductive economy such as the $45,000 handbag, the $100,000 birthday parties or the $1000 haircuts.  All the resources behind all these outrageous consumption wouldn’t be in it if it weren’t for the demand of the ultra rich.  If there was no ultra-rich, the people would have to inject their manpower, brainpower, and materials into production for the average people whose income is more sane.


2 responses to “A $45,000 handbag is silly only if you’re poor.

  1. Michelle January 31, 2011 at 3:04 am

    What an ugly bag. I have nothing else to add to this topic 🙂

    • natepolean February 1, 2011 at 12:01 am

      yeah, it’s hard to argue for a $45,000 handbag, I just picked the extreme example to catch people’s attention. But lots of people would pay hundreds of dollars for a regular Coach bag and other luxury goods. While many of these people may not be ultra-rich, but some are still undeservedly wealth and can generate a lot of consumer spending which then support much of the unproductive economy.

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