Trading Up Just Makes You Poor
This story, “Thinking Twice About That $400 Handbag” in the New York Times discusses the decline of the “trading up” phenomenon in an economy stumbling toward recession. I read the book by Michael Silverstein and Neil Fiske, which described women who made just above minimum wage splurging on $80 lingerie at Victoria’s Secret and $200 jeans.
I found it depressing, thinking of consumers who could be building legitimate wealth to achieve their larger values – blowing it on polyester nightgowns and denim that probably costs $1 to manufacture overseas. For what? So they can feel “rich.”
Either U.S. consumers have a colossal insecurity problem whose analysis would stymie Freud, or the brightest minds from the best schools are choosing careers in marketing. Or both. Because it would take that, at the very least, to pull off such a massive swindle.
Here’s a story about the consequences of trading up: A New York archivist who has been selling off the state’s heritage on eBay to pay for his daughter’s “credit card problem.” Trading up indeed.
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February 4th, 2008 at 5:14 pm
I think a balance can be struck between the trading up impulses we generally have and wealth-building. While I do save money consistently and max out my 401K, I enjoy the occassional splurge – this past fall’s was a beautiful italian made MJ leather handbag featuring a clasp of coral, onyx and mother of pearl worth every penny ($2k -yikes!) But I derive so much pleasure looking at it and carrying it that I don’t regret it. I expect to keep it in heavy rotation for at least another 10 years. What I don’t understand is the trading up in every aspect of one’s lifestyle – $250 jeans, frette sheets, eating out every lunch and dinner, Starbucks everyday, expensive gym memberships and cabs everywhere. That’s just plain idiotic.