When the Rich Get Less Rich

Article of discussion titled "When the Rich Get Less Rich" by Valerie Seckler. Article can be found at http://www.wwd.com/business-news/when-the-rich-get-less-rich-2088349/print/

Since the rise of the simpler living and economic movements, the luxury consumption of consumers could shrink even when the economy straightens up and spending becomes less tight. According to a survey conducted by PricewaterhouseCoopers and Retail Forward, less-exclusive, less-expensive goods may occur in as many as half the households with annual income of $100,000 to $250,000. This is largely due to greater difficulties securing credits. This will put a strain on high-end fashion, electronics, and home remodeling. Many consumers are making changes from brands such as Prada and Vera Wang to Nordstrom and Bloomingdale's.

High-end spending has been on the decline also because of the decline in the public optimism on the economy. With unemployment at 8.1% and rising, few increases in personal income, and the upper middle class's anxiety about the recession will end is reflected in consumer saving and preserving of capital investments.

More Americans are becoming more satisfied with what they have and saving their income during this economic strain. It is also being seen as "a fundamental shift away from materialism," as quoted by John Zogby, CEO of Zogby International.