> Their massive spending on luxuries distorts economies, diverting producers from providing goods and services for the more needy.
The article rather trivially omits the product adoption curve that in some markets is heavily subsidized by luxury spenders. A bunch of car safety features, for example, are offered at a high markup in luxury vehicles, like Lexus or Infiniti, and with gradual adoption and diminished cost are passed on to Toyota and Nissan models.
On a global scale a two-year upgrade cycle for smartphones in the US made previous-generation smartphones affordable at many poorer markets.
Even common household goods and fixtures like LED lighting or dishwasher machines first were considered luxuries, priced as luxuries, and eventually became commoditized.
The article rather trivially omits the product adoption curve that in some markets is heavily subsidized by luxury spenders. A bunch of car safety features, for example, are offered at a high markup in luxury vehicles, like Lexus or Infiniti, and with gradual adoption and diminished cost are passed on to Toyota and Nissan models.
On a global scale a two-year upgrade cycle for smartphones in the US made previous-generation smartphones affordable at many poorer markets.
Even common household goods and fixtures like LED lighting or dishwasher machines first were considered luxuries, priced as luxuries, and eventually became commoditized.