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Showing posts with label pointless consumerisim. Show all posts
Showing posts with label pointless consumerisim. Show all posts
Mar 31, 2022
Apr 2, 2018
Feb 28, 2012
Anti-Consumption Hypocrisy Explosion
Maybe you've actually read Dr. Seuss’s The Lorax? Well there's one of those slapped together 90 minute versions coming to the big screen now...
Oh, you haven't read it? Or maybe it was in the 70's? Well The Lorax is the Silent Spring for the grade school set. The original Woodsy Owl spokesperson for conservation. It's simply an anti-consumer/anti-capitalist warning against rampant greed and consumerism which destroyed the forest of Truffula Trees and the Brown Bar-ba-loots,
Swomee-Swans, and Humming-Fish that depended on them. The whole damn ecosystem is gone to make a Pillow Pet, or a sweater or some-such-thing.
Here's the ironic bit about it... the whole thing is being co-opted by corporate greed. I mean, above and beyond the bastardization of the story now that Seuss's corpse is fairly cold now.
As The Lorax arrives in theaters— there's dozens of corporate tie-ins riding the coat tails. While the story teaches children to conserve the earth’s finite resources, these heavily advertised partnerships compel them to consume, consume, consume. Hah!
Surprisingly though, no Humming-Fish Sticks by Swanson? A missed opportunity there.
The humor, of using a beloved children’s story with a prescient environmental message to sell kids on everything from SUVs to pancakes isn't lost here.
If you care about this - or want to show your children to be more like the Lorax. Sign a pledge to shun The Lorax’s corporate cross-promotions.
Anti-Consumption hypocrisy may be in contention of Hypocrite of the Year Award. Hell, we may have to retire the award after this one, folks.
Here's the ironic bit about it... the whole thing is being co-opted by corporate greed. I mean, above and beyond the bastardization of the story now that Seuss's corpse is fairly cold now.
As The Lorax arrives in theaters— there's dozens of corporate tie-ins riding the coat tails. While the story teaches children to conserve the earth’s finite resources, these heavily advertised partnerships compel them to consume, consume, consume. Hah!
- The new Mazda CX-5 SUV—the only car with the “Truffula Seal of Approval.”
- Seventh Generation household products and diapers festooned with the Lorax.
- IHOP’s kids’ menu items like Rooty Tooty Bar-Ba-Looty Blueberry Cone Cakes and Truffula Chip Pancakes.
- In-store promotions featuring the Lorax at Whole Foods, Pottery Barn Kids, and Target.
- Online Lorax games and sweepstakes for YoKids Yogurt, Comcast Xfinity TV, Target, IHOP, and HP.
- HP’s “Every Inkling Makes a Difference” in-school curriculum produced and distributed by Scholastic.
"UNLESS someone like you cares a whole awful lot, nothing is going to get better. It’s not."
—The Lorax
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The humor, of using a beloved children’s story with a prescient environmental message to sell kids on everything from SUVs to pancakes isn't lost here.
If you care about this - or want to show your children to be more like the Lorax. Sign a pledge to shun The Lorax’s corporate cross-promotions.
Anti-Consumption hypocrisy may be in contention of Hypocrite of the Year Award. Hell, we may have to retire the award after this one, folks.
Jan 17, 2011
Starbuck's Big Gulp
Starbucks announced today the impending introduction of its own version of the Big Gulp — a gut-punching 31-ouncer called the “Trenta.”
When forced to drink that burnt swill, I order "coffee of the day. Medium." It usually pisses them off.
Jan 1, 2011
Oh, Those Opulent O’s.
We’ve come to the end of a decade - yes, I start counting my decades by the ones and not the zeroes, which means that 1980 was the last year of the 70’s. I know it looks stupid on paper, but it is the proper way. My reference point would be the classic Onion Headline - “The Millennium Begins in 2001, Terrorists Note.”
In the grand tradition of rehashing old news and making sub-standard lists of events, arbitrary lists of the ‘best’ movies or music, reality television ‘stars’, or worst of all - consumer products - allow me the exercise of looking back with the rose colored glasses of time. I’d like to try to present the previous ten years as it might show up in a history book.
The Opulent O's
Previous eras of the American experience have been labeled, whether accurately or not, by the generations that followed. The eras of the Gilded Age, the Roaring Twenties, or the Fabulous Fifties give an over reaching illusion of wealth and comfort afforded by all the citizenry. Careful study shows that there were major exceptions ranked by class status and race in each of these three examples, and the names themselves discount recessionary times, and any turmoil that existed. However, the tradition of remembrance for a grouping of ten years with a fantastical moniker has become an unfortunate reality of historical narrative when examining the history of America. The era that we are focusing on now is no exception -- the era which begins at the turn of the 21st Century to the new year of 2011 CE. This time has become known as the Opulent O’s.
To first explain the name of the era, the people of the time did not refer to the year in which they lived as the aughts, or oughts as proper English would dictate, or even the example of the generation that lived through the turn of the previous century, the 1900’s. The pronunciation of the year in which they lived predominantly was spoken as, “two thousand and...” followed by the number designate. Hence, why a few historians have refereed to the era as the ‘And’s’. The consensus by reputable sources and careful research has been to designate this time as the ‘Oh’s.’ The evidence in the historical record suggests that the people of the time would sometimes drop the ‘two thousand’ in speech and would simply state, “Oh six,” when giving a descriptor of a year; as an example.
The word Opulent has become to describe the era. The Latin derived definition in English are defined as 1. Having or indicating wealth, and also 2. Abundant or plentiful. Ignoring race or regional exceptions -- the word perfectly defines the era.
The primary fuel of the time was cheap and easily obtained petroleum drilled from the ground. The peak of use of gasoline and plastic derived from oil occurred in this era. The abundance of cheap oil and fuel allowed for cheap food sources. The importance of oil in the life cycle of plant to waste product must be studied to understand the mindset of the time. The availability and sheer amounts of cheap fuel created a cradle-to-grave manufacturing cycle from consumer goods to 4 ton single passenger vehicle with low fuel to kilometer use ratios -- which defines the zeitgeist. The most important aspect, in hindsight, to the lifestyle of the times was the amount of fuel used to create inexpensive food. The petroleum was used in the creation of fertilizer, and copious amounts were used in the entire process of seed to market, and market to aftermarket production.
Simplified, the oil or oil products would be used by the farmer from every aspect of his production -- from the multiple passes on a tractor (soil toiling, planting, chemical pesticide application, cultivation and a final till of the soil), to transport to industrial food processing off site (sometimes thousands of miles) from the farmland. Next, from the secondary processor which would create a chemical byproduct of the original agricultural product (Maize and soybeans being the most popular of the bases found in most supermarkets [see also ADM Corporation] would then transport and package the new product and ship by truck to market. Retail supermarkets [Safeway, Albertsons], “fast food” restaurants [McDonald’s, Chili’s] or superstore retail outlets [Costco, Wal-Mart] would then cater to the final end user, who more often than not, used a single passenger vehicle to transport the product home. Once the product was consumed, the end user simply disposed of the plastic packaging to preserve the food product, and the outer container -- typically another plastic or cardboard package which only served to encourage purchase. Once discarded the packaging materials were then transported by another gas powered truck or transport to take the used goods to be covered in a landfill. The concept of cradle to cradle manufacturing may have germinated in this era, but due to the nature and scale of the single-use economic cycle, it was counter productive or even suicidal for any industry to adopt a plan to reuse or recycle their resources or waste products.
Since fuel and food were inexpensive, the lifestyle of the typical American of the Opulent O’s were filled with store bought conveniences and electronic trinkets designed for obsolescence which encouraged constant replacement. Leveraged credit based upon elevated housing prices allowed consumers buying power. It was not uncommon for an American to have bought a home past their means, and taken credit based on that home’s perceived market value, called a home equity loan. These funds were then used to purchase more consumer goods -- and often with a credit card [MasterCard, Visa]. The economy was primarily based on the spending habits of the consumer. Even after the terrorist attacks on September 11, 2001, President George W. Bush urged Americans to go to the malls, and purchase houses and cars to get the economy engine moving again. The government created an environment of low interest rates and extremely easy credit in order to facilitate the consumer’s appetite.
Two major military engagements were initiated in response to the sensational terrorist attacks in America, under the banner of a “War on Terrorism.” The engagements in Afghanistan were aided by the Allied Western NATO nations, and the second invasion of Iraq resulted in the replacement of the government there, and a permanent American presence. History has shown, both of these costly involvements were to secure the oil fields, and an attempt to stabilize the region [see also Iran v America 1970-2020] -- thus insuring the flow of inexpensive oil to American business interests. Specifically those partners in Europe and China. Like the citizenry, these foreign entanglements were funded largely by credit. The U.S. had gone from a creditor nation to a debtor nation in 1988, but accelerated during the Bush and Obama Administrations.
Despite the trillions of dollars expended, the price of oil rose as industrial engines of India and China grew their GDP by 20% per year. Oil Prices rose in late 2006 because of simple supply and demand, plus speculation in the commodity markets. Soon, inflation of consumer products, fuel prices, and food began to outpace the threshold of business and consumer expendable incomes. Quickly, the slowdown of consumer spending toppled the preposterous derivative financial products of the time, wiped out the housing speculation and subsequent consumer credit bubble, and exposed widespread institutional Ponzi schemes, not dissimilar to the domino effect experienced at the end of the Roaring 1920’s.
Amazingly, the Six Corporate media companies either were misinformed or incapable of reporting the trends that were creating the problems that led to disaster, and instead reported only soft news (entertainment and sporting events which fed to their other advertising sponsored media concerns), or blatantly perpetuated partisan arguments to fill a 24 hour news cycle with surprisingly low or useless content to their audiences. The news of the day, even as late as 2010, was that of recovery and consumer confidence -- despite under reported or manipulated unemployment figures and a withering manufacturing base. Despite the ineffectual news climate, the government and other influential sources were inserting the word “unsustainable” into the collective vocabulary. At the end of the decade, even to the most optimistic, it seemed that the party was coming to a close. The start of a ‘new normal’ was discussed and contemplated.
Notable Starts: Enhanced government security, social media on networked devices, portable networked computing in communication devices, alternative energy, commercial exploration of space, TEA Party [Taxed Enough Already Party]
Influential Americans: George W. Bush (43rd President), Barack H. Obama (44th President), Larry Page and Sergey Brin, Warren Buffet, Alan Greenspan, Oprah Winfrey, Mark Zuckerburg, Steve Jobs, Sarah Palin.
Human Achievements: Completion of the Human Genome Project, Large Hadron Collider (Switzerland), 2nd Hubble Space Telescope repair by Human Astronauts, extra solar system planetoids discovered, water found on Mars and the Moon.
Notable Disasters: Terrorist Attacks on September 11th, 2001, Hurricane Katrina hits New Orleans and Mississippi, Gulf of Mexico Oil Spill, Global Warming/Climate Change.
In the grand tradition of rehashing old news and making sub-standard lists of events, arbitrary lists of the ‘best’ movies or music, reality television ‘stars’, or worst of all - consumer products - allow me the exercise of looking back with the rose colored glasses of time. I’d like to try to present the previous ten years as it might show up in a history book.
The Opulent O's
Previous eras of the American experience have been labeled, whether accurately or not, by the generations that followed. The eras of the Gilded Age, the Roaring Twenties, or the Fabulous Fifties give an over reaching illusion of wealth and comfort afforded by all the citizenry. Careful study shows that there were major exceptions ranked by class status and race in each of these three examples, and the names themselves discount recessionary times, and any turmoil that existed. However, the tradition of remembrance for a grouping of ten years with a fantastical moniker has become an unfortunate reality of historical narrative when examining the history of America. The era that we are focusing on now is no exception -- the era which begins at the turn of the 21st Century to the new year of 2011 CE. This time has become known as the Opulent O’s.
To first explain the name of the era, the people of the time did not refer to the year in which they lived as the aughts, or oughts as proper English would dictate, or even the example of the generation that lived through the turn of the previous century, the 1900’s. The pronunciation of the year in which they lived predominantly was spoken as, “two thousand and...” followed by the number designate. Hence, why a few historians have refereed to the era as the ‘And’s’. The consensus by reputable sources and careful research has been to designate this time as the ‘Oh’s.’ The evidence in the historical record suggests that the people of the time would sometimes drop the ‘two thousand’ in speech and would simply state, “Oh six,” when giving a descriptor of a year; as an example.
The word Opulent has become to describe the era. The Latin derived definition in English are defined as 1. Having or indicating wealth, and also 2. Abundant or plentiful. Ignoring race or regional exceptions -- the word perfectly defines the era.
The primary fuel of the time was cheap and easily obtained petroleum drilled from the ground. The peak of use of gasoline and plastic derived from oil occurred in this era. The abundance of cheap oil and fuel allowed for cheap food sources. The importance of oil in the life cycle of plant to waste product must be studied to understand the mindset of the time. The availability and sheer amounts of cheap fuel created a cradle-to-grave manufacturing cycle from consumer goods to 4 ton single passenger vehicle with low fuel to kilometer use ratios -- which defines the zeitgeist. The most important aspect, in hindsight, to the lifestyle of the times was the amount of fuel used to create inexpensive food. The petroleum was used in the creation of fertilizer, and copious amounts were used in the entire process of seed to market, and market to aftermarket production.
Simplified, the oil or oil products would be used by the farmer from every aspect of his production -- from the multiple passes on a tractor (soil toiling, planting, chemical pesticide application, cultivation and a final till of the soil), to transport to industrial food processing off site (sometimes thousands of miles) from the farmland. Next, from the secondary processor which would create a chemical byproduct of the original agricultural product (Maize and soybeans being the most popular of the bases found in most supermarkets [see also ADM Corporation] would then transport and package the new product and ship by truck to market. Retail supermarkets [Safeway, Albertsons], “fast food” restaurants [McDonald’s, Chili’s] or superstore retail outlets [Costco, Wal-Mart] would then cater to the final end user, who more often than not, used a single passenger vehicle to transport the product home. Once the product was consumed, the end user simply disposed of the plastic packaging to preserve the food product, and the outer container -- typically another plastic or cardboard package which only served to encourage purchase. Once discarded the packaging materials were then transported by another gas powered truck or transport to take the used goods to be covered in a landfill. The concept of cradle to cradle manufacturing may have germinated in this era, but due to the nature and scale of the single-use economic cycle, it was counter productive or even suicidal for any industry to adopt a plan to reuse or recycle their resources or waste products.
Since fuel and food were inexpensive, the lifestyle of the typical American of the Opulent O’s were filled with store bought conveniences and electronic trinkets designed for obsolescence which encouraged constant replacement. Leveraged credit based upon elevated housing prices allowed consumers buying power. It was not uncommon for an American to have bought a home past their means, and taken credit based on that home’s perceived market value, called a home equity loan. These funds were then used to purchase more consumer goods -- and often with a credit card [MasterCard, Visa]. The economy was primarily based on the spending habits of the consumer. Even after the terrorist attacks on September 11, 2001, President George W. Bush urged Americans to go to the malls, and purchase houses and cars to get the economy engine moving again. The government created an environment of low interest rates and extremely easy credit in order to facilitate the consumer’s appetite.
Two major military engagements were initiated in response to the sensational terrorist attacks in America, under the banner of a “War on Terrorism.” The engagements in Afghanistan were aided by the Allied Western NATO nations, and the second invasion of Iraq resulted in the replacement of the government there, and a permanent American presence. History has shown, both of these costly involvements were to secure the oil fields, and an attempt to stabilize the region [see also Iran v America 1970-2020] -- thus insuring the flow of inexpensive oil to American business interests. Specifically those partners in Europe and China. Like the citizenry, these foreign entanglements were funded largely by credit. The U.S. had gone from a creditor nation to a debtor nation in 1988, but accelerated during the Bush and Obama Administrations.
Despite the trillions of dollars expended, the price of oil rose as industrial engines of India and China grew their GDP by 20% per year. Oil Prices rose in late 2006 because of simple supply and demand, plus speculation in the commodity markets. Soon, inflation of consumer products, fuel prices, and food began to outpace the threshold of business and consumer expendable incomes. Quickly, the slowdown of consumer spending toppled the preposterous derivative financial products of the time, wiped out the housing speculation and subsequent consumer credit bubble, and exposed widespread institutional Ponzi schemes, not dissimilar to the domino effect experienced at the end of the Roaring 1920’s.
Amazingly, the Six Corporate media companies either were misinformed or incapable of reporting the trends that were creating the problems that led to disaster, and instead reported only soft news (entertainment and sporting events which fed to their other advertising sponsored media concerns), or blatantly perpetuated partisan arguments to fill a 24 hour news cycle with surprisingly low or useless content to their audiences. The news of the day, even as late as 2010, was that of recovery and consumer confidence -- despite under reported or manipulated unemployment figures and a withering manufacturing base. Despite the ineffectual news climate, the government and other influential sources were inserting the word “unsustainable” into the collective vocabulary. At the end of the decade, even to the most optimistic, it seemed that the party was coming to a close. The start of a ‘new normal’ was discussed and contemplated.
Notable Starts: Enhanced government security, social media on networked devices, portable networked computing in communication devices, alternative energy, commercial exploration of space, TEA Party [Taxed Enough Already Party]
Influential Americans: George W. Bush (43rd President), Barack H. Obama (44th President), Larry Page and Sergey Brin, Warren Buffet, Alan Greenspan, Oprah Winfrey, Mark Zuckerburg, Steve Jobs, Sarah Palin.
Human Achievements: Completion of the Human Genome Project, Large Hadron Collider (Switzerland), 2nd Hubble Space Telescope repair by Human Astronauts, extra solar system planetoids discovered, water found on Mars and the Moon.
Notable Disasters: Terrorist Attacks on September 11th, 2001, Hurricane Katrina hits New Orleans and Mississippi, Gulf of Mexico Oil Spill, Global Warming/Climate Change.
Labels:
Afghanistan,
American Gothic,
Barack Obama,
Bush administration,
consumers,
corporate overlords,
fiscal policy,
food politics,
history,
iPad,
iphone,
Iran,
oil,
pointless consumerisim,
TSA
Dec 25, 2010
Nov 26, 2010
Black Friday Maddness!
Two years ago, a temporary employee working at a Wal-Mart in New York was killed when frenzied Black Friday shoppers trampled, and then suffocated him. A crowd of 2,000 shoppers stormed the locked doors of the store, broke through, injured the workers trying to hold the shoppers back and killing Jdimytai Damour. The subsequent OSHA investigation resulted in $7,000 fine to Wal-Mart because although there exists no OSHA standard on crowd control, employers have a general duty to provide a workplace free of recognized hazards that could cause serious injury or death, and, OSHA argued, Wal-Mart should have been aware of the hazards present in a riled-up, bargain-hungry crowd and should have provided adequate crowd control measures. They had created the mob, and then were unable to anticipate a mob - or then control that mob.Wal-Mart has spent millions of dollars fighting the citation, arguing that this is an expansive reading of OSHA’s general duty clause. The case is currently before the Occupational Safety and Health Review Commission (OSHRC), and a decision is expected soon. Not in time for this Black Friday, though.
Retailers and the media actively whip up consumers with early store openings, “doorbuster deals” for the first customers, and news stories (and don't forget all that awesome free publicity on local and national news outlet) about people camping outside of stores days ahead. This atmosphere creates a deal-crazed mob that endangers employees and consumers. Recognizing this, OSHA has sent a letter to major retailers detailing security measures that they should take to avoid a similar tragedy. Suggestions include setting the waiting area back from the entrance to control entry, as well as including breaks and turns in the waiting line to avoid crowd swells and pushes from the rear. You may recognize this type of line from your bank or Disney World. OSHA also suggests removing carts and other instruments that could be used as a battering ram. Come on, people?If you are planning to participate in Black Friday events, be safe, be respectful, and remember that it’s just a goddamned laptop. Why don't you morons who are whipped up into this murderous frenzy go and get some internet access? I casually found the Target Toy Story 3 DVD for the same price as the 'doorbuster' on Amazon. Triple bonus - not standing outside, waiting in line, or paying taxes.
Sep 11, 2010
Remember
For all of our problems, and our animosities toward each other in the USA, it should be remembered that we can organize and create amazing things, when motivated. We can build steel towers that defy wind and gravity by having the load bearing walls that stretch higher than any other tower on the planet. Two of them. And combined, contain more office space than all of downtown Miami in a two block radius on a small island in New York harbor. We, as Americans, can and have built massive structures such as the Hoover Dam, and interlocking Interstate Highway System and even put twelve men on the moon and brought them back. Those are examples of our government projects that work. Together, Americans can accomplish the impossible, or even the improbable. When they come together for common good, for our society, for our goofy consumer based, wasteful, capitalist lifestyle - Americans have done some amazing things.There are others on the globe that hate us - some in other Western countries, and others in places that can only dream of our wealth, prosperity and waistlines. Whether it's because we flaunt it, are rude on vacation, or have carried out wars and assassinations to make sure we carry on. America has a bi-polar disease. We flaunt liberty and human rights while we have the largest prison population per capita than anyone else in the world. We expect human rights to not be ignored, but barely care when we hear our cheep toasters come from children working in deplorable conditions. And sure, the eight trips to Target in a week in the Lincoln MKX to pick up plastic bins that are on sale is silly and unsustainable. And we've done a lot of 'interesting' moves along the way to ensure the liberty of a lot of jack-asses. But that's our deal. We've done things to keep our silly lifestyle unmolested from foreign forces who would make us change our ways. But when you threaten us, we'll over react. Just ask Japan.
There are volumes of books about 9/11. How it happened, did it happen, who really did it... I'm not a conspiracy theory kind of guy. It was there, it was a symbol, and the bad guys wanted to send a message to America to cut it out. Twice. Once in February 26, the other on September 11th. They proved that they don't understand us, about as well as we don't understand them. Rather than getting into a geo-political discussion of the events leading up to and after 9/11... let's just remember that day. Remember everyone who died, and what you were doing, and how you felt when you saw the towers fall, and the walls of the Pentagon breached, and the smoldering crater in Pennsylvania.I will. And when I see an airplane flying, I remember when I didn't see airplanes flying. As flawed as we are, I know I hit the lucky sperm club lottery to be who I am, where I am, when I am. I'm proud to be an American.
Aug 24, 2010
Chewbacca Pink?
This Worthington top is in the women’s plus section and features the option for “Chewbacca Pink” as the color.
Do they think their customers are giant, hairy Amazon women? Perhaps it was just some random idea to make the color pink seem more interesting. Maybe they were hunting down wild pink Chewbaccas for their fur.
Aug 21, 2010
Saturday Morning Cartoons
Bonus Saturday Morning Cartoon...
Please don’t be offended if you have an iphone, just a cute video that’s been making the rounds – apple is a marketing genius. Be warned, it contains rough language.
Jul 19, 2010
Trickle Down
Remember when everything was starting to look better? When spending by the most affluent was about to save us from the Great Recession? It didn't last, and now that the rich are on a budget, it's time to show how trickle down works, again.“One of the reasons that the recovery has lost momentum is that high-end consumers have become more jittery and more cautious,” said Mark Zandi, chief economist for Moody’s Analytics.
That cautious attitude stems in part from concerns about global instability, especially in Europe, and in part from the volatility of the stock market in recent months. Major stock indexes are about as safe and fun as that rusty roller coaster manned by the stoned Carnie at the Iowa County Fair. And after big companies announced disappointing earnings, and bank stockstaking a nose dive as investors wrestled with the twin issues of lower trading profits from Citibank and Bank of America and the prospect that new financial regulation would further crimp their businesses. The rich are starting to google "Frugal" and "on a budget."
Stocks are mostly psychological. Everyone hears the empty piggy bank of financial future and savings. There was a report that half of America has a grand total of two grand in their retirement savings. Waiting for the other shoe to drop? How about the entire shoe store? Consumer confidence slumped in July to its lowest point since August 2009 in the Thomson Reuters/University of Michigan index..
The Dow Jones industrial average slipped 261.41 points to 10,097.9 last Friday, for a loss of 2.52 percent. For the year, broad-based stock indexes in the United States all show losses of more than 3 percent.
Even The Fed has acknowledged that the recovery is losing steam and suggested that should conditions worsen further, additional stimulus will be needed. Well, what else would you expect?
At this stage of a recovery, businesses and economists want to see people of all incomes spending more, because the demand for goods and services would in turn encourage companies to hire workers. The American consumer accounts for an estimated 60 percent of the country’s economic activity.
ut the Top 5 percent in income earners — those households earning $210,000 or more — account for about one-third of consumer outlays, including spending on goods and services, interest payments on consumer debt and cash gifts, according to an analysis of Federal Reserve data by Moody’s Analytics. That means the purchasing decisions of the rich have an outsize effect on economic data. According to Gallup, spending by upper-income consumers — defined as those earning $90,000 or more — surged to an average of $145 a day in May, up 33 percent from a year earlier. Hmmmm.Then in June, that daily average slid to $119. “I think a lot of that feeling that the worst was over has sort of abated,” said Dennis J. Jacobe, Gallup’s chief economist.
Although real estate brokers in Manhattan and the Hamptons report that buyers at the high end have returned, and Mercedes sales in the United States are up 26 percent this year, other indicators suggest a slowdown.
At the high end, luxury hotel chains like the Four Seasons and Ritz Carlton said bookings were much stronger earlier this year but had recently slowed. And upscale retailers, including Saks and Neiman Marcus, said sales growth eased in June. Overall retail sales slid in June from May, the government said this week.To the extent that the wariness of the affluent is driven mainly by nerves and sentiment, economists hope that it will be temporary. “If growth is actually solid, those fears will dissipate,” said Dean Maki, chief United States economist at Barclays Capital and a former senior economist at the Federal Reserve Board.
The worry, of course, is that consumers will stop spending because of their concerns about a slowdown, and that economic growth will slow because consumers have stopped spending.
After virtually shutting down during the financial collapse in late 2008, the wealthy began to open their wallets wider last year, in part because a stock market rally helped them feel better off financially.
By spring of last year, the savings rate — which represents the percentage of after-tax income not spent — of the top 5 percent of income earners had turned negative, according to the analysis by Moody’s Analytics. That meant the group was spending more than it made.
Less well-off consumers remained more frugal, most likely constrained by unemployment, declines in home values and the disappearance of easy credit. So the savings rate actually rose last year for those in middle-income brackets as they cut spending.
Job losses have disproportionately hit those at the lower end of the wage scale. According to the Labor Department, the unemployment rate among people in management, business or financial occupations was 4.8 percent in June, compared to 9.5 percent over all, 18.2 percent in construction and 12.1 percent in production.
As a result, the affluent generally maintained their spending power at a time when others were losing it. “High-income households drove the economy out of recession into recovery and powered the recovery through its first year,” Mr. Zandi concluded. He added that although the incomes of the richest people might have been affected by swings in dividend payments or bonuses, the change in their savings rate was most likely driven by increased spending.
Affluent spenders “began to come out of the bunker about this time last year,” Mr. Zandi said, “and part of it was related to the revival in the stock market.”
Other economists suggest that while Mr. Zandi’s conclusions make some sense, the data is hazy on the precise role that the rich have played in consumer spending. “We have tried to do other things like look at consumer expenditures on products mainly purchased by the rich and could never get anywhere,” said Barry P. Bosworth, a senior fellow at the Brookings Institution.
On the ground, those whose sales depend on affluent buyers have seen definite patterns. Last year and early this year, when the major stock gauges were rising, “everybody seemed to be a little bit more optimistic,” said Tom Hauswirth, general manager and partner of Moritz Cadillac, BMW and Mini in Arlington, Tex., near Dallas.
“Then I think everybody was affected when they saw the stock market go below 10,000,” he said. “Even though it may not affect their ability to buy or not, it affects their thinking.”
Mr. Hauswirth said that those who had recently bought new cars were sometimes fearful of being labeled as conspicuous consumers. A few, he said, insisted on buying new cars in the same color as their old models.
“They didn’t want their employees to know they bought a new car,” he said. “It doesn’t look good during a wage freeze or when they’re cutting people.”
Moritz laid off about 15 percent of its sales staff last year, and Mr. Hauswirth said that he did not yet feel comfortable hiring back until sales improved more.
Linda Dresner, the owner of a clothing boutique for women that carries designers like Dries van Noten and John Galliano in the upscale suburb of Birmingham, Mich., has reduced her inventory and says customers often say their husbands have asked them to rein in spending.
“They are wealthy people who live well,” Ms. Dresner said. “But their businesses have suffered some, and they are pulling back.”
Policy makers are divided on what may be needed to spur economic growth, with a current debate raging over whether to extend unemployment benefits, payments that are usually spent immediately. .
Sam Pizzigati, associate fellow at the Institute for Policy Studies, a left-leaning research center, cautions against simply boosting the spending power of the rich through tax cuts or other measures. “Otherwise, we find ourselves in an ‘Alice in Wonderland’ world,” he said, “and the solution to the hard times that the economy is going through is to help the people that are not going through hard times.”
For now, some affluent spenders are getting thrifty. Linda Stasiak, who sells high-end skin care products to retailers like Whole Foods, said that her biggest sales increase had been for a $15.95 tube wringer, made to get every last drop out of a bottle of lotion.
“During peak time, I don’t even really remember selling them,” Ms. Stasiak said.
However - There is one thing we've got that they didn't have in the Great Depression: built in obsolescence : in industrial design is a policy of deliberately planning or designing a product with a limited useful life, so it will become obsolete or nonfunctional after a certain period. Planned obsolescence has potential benefits for a producer because to obtain continuing use of the product the consumer is under pressure to purchase again, whether from the same manufacturer (a replacement part or a newer model, heeelllooo iPhone customers waiting in line, over night?), or from a competitor which might also rely on planned obsolescence. The purpose of planned obsolescence is to hide the real cost per use from the consumer, who will be willing to pay a higher price for the product than if he had been aware of its limited useful life.So, we got that going for us. I know I've had to buy a whole bunch of crap - washing machine, fridge, car, lawn mower, garage door... I can name about ten other $300.00 items that needed to be fixed or replaced since the beginning of the Great Recession. So, perhaps, one of the worst aspects of capitalism will be the one thing that saves it?
PS Thanks to the NYTimes for the bulk of my cutn'paste.
Jul 17, 2010
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