The Show-Off Society

by Paul Krugman
[Paul Krugman is an American economist, Professor of Economics and International Affairs at Princeton University and an op-ed columnist for The New York Times. He was awarded the Nobel Prize in Economics, the sole recipient for 2008.]

A part of the article published (24th Sep. 2014) in New York Times is reproduced here;

"It’s not just that people who can afford to live large tend to do just that. As Thorstein Veblen told us long ago, in a highly unequal society the wealthy feel obliged to engage in “conspicuous consumption,” spending in highly visible ways to demonstrate their wealth. And modern social science confirms his insight. For example, researchers at the Federal Reserve have shown that people living in highly unequal neighborhoods are more likely to buy luxury cars than those living in more homogeneous settings. Pretty clearly, high inequality brings a perceived need to spend money in ways that signal status. The point is that while chiding the rich for their vulgarity may not be as offensive as lecturing the poor on their moral failings, it’s just as futile. Human nature being what it is, it’s silly to expect humility from a highly privileged elite. So if you think our society needs more humility, you should support policies that would reduce the elite’s privileges".

Please read the article in full via following link

http://www.nytimes.com/2014/09/26/opinion/paul-krugman-the-show-off-society.html?_r=0