“Enough, already, with compassion for society’s middle and lower orders,” writes George F. Will in today’s Washington Post. “There currently is a sympathy deficit regarding the very rich. Or so the rich might argue because they bear the heavy burden of spending enough to keep today’s plutonomy humming.”
Envy increases while — and perhaps even faster than — wealth does. When affluence in the material economy guarantees that a large majority can take for granted things that a few generations ago were luxuries for a small minority (a nice home, nice vacations, a second home, college education, comfortable retirement), the “positional economy” becomes more important.Positional goods and services are inherently minority enjoyments. These are enjoyments — “elite” education, “exclusive” vacations or properties — available only to persons with sufficient wealth to pursue the satisfaction of “positional competition.” Time was, certain clothes, luggage, wristwatches, handbags, automobiles, etc., sufficed. But with so much money sloshing around the world, too many people can purchase them. Too many, in the sense that the value of acquiring a “positional good” is linked to the fact that all but a few people cannot acquire it.
That used to be guaranteed because supplies of many positional goods were inelastic — they were made by a small class of European craftsmen. But when they are mass-produced in developing nations, they cannot long remain such goods. When 40 percent of all Japanese — and, Fortune reports, 94.3 percent of Japanese women in their 20s — own a Louis Vuitton item, its positional value vanishes.
Whatever Facscinating stuff, I’m sure you’ll agree. And while Will fails to identify the primary cause for the uber rich being today’s middle class, that’s perfectly ok. As a baseball guy, I wouldn’t expect him to try and track down Bryant Reeves.
I was getting a haircut before the first or second day of school around 1989 in Bethesda, MD with George Will in the chair next to me when the phone rang. Commissioner Giamatti died suddenly. Will was offered the position of commissioner of Baseball, and paused for about 10 seconds before turning it down. All the barbers were like, “Good idea George, who needs all the pressure of being baseball commissioner” with all the know-it-all-isms of a group of male sports nuts. I was stunned into silence for the remainder of my haircut. No one seems to mention that Will was offered this job, despite years of me retelling this story.
‘These are enjoyments — “elite†education, “exclusive†vacations or properties — available only to persons with sufficient wealth to pursue the satisfaction of “positional competition.†‘
Scare quotes a go go! What is so so-called about the exclusive in “exclusive vacations?” Most people cannot afford to vacation where George does (outside Reagan’s birthplace, in a tent), but what’s not exclusive to him is indeed exclusive to most Americans. Unless they’re willing to roll up extensive debt on their credit cards which, sadly, most people are.
Also, shouldn’t comprehensive health care and insurance be listed under the luxury “enjoyments” he mentions?
Plutonomy indeed. Well, at least there’s still some hope around here, because the preferred baseball team of Chicago’s “positional economy” just choked on a big ol’ ivy-adorned goat dick. And unless you count AJ Pierzynski, there was no small class of European craftsmen involved in the recent acquisition of a World Championship on the working side of town.
Apparently George considers this phenomenon “vulgar,” but, it seems, not vulgar enough to support redistribution of funds to the underprivilegedPittsburgh Pirates.