Like most denizens of the personal finance blogsphere, I’m always on the lookout for news that fresh and unique. Well, if you get a chance you might want to cruse on over to the New York Times, and check out their story on the consumption habits of Russia’s new rich.
According to the article, the oligarchical class is nuts about conspicuous consumption, and enjoy buying race horses, furs and other status symbols. Click here for the story.
My first reaction was to dismiss such spendthriftyness out of hand. Most millionaires on the US got their money by saving, investing and being successful in business. But, when I think about it again, it may be that Russia’s problems with immature capitol markets and lack of government transparency may change that country’s wealth dynamic. Its possible that, in Russia conspicuous consumption is needed to ensure ones place in society. Whereas here, spending money on consumer goods usually hurts you economically.
Now…if Russia could just do something about their national problems with rampant alcoholism and worldwide arms trafficking..
Best,
James
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