Why I love the Economist 2

Anyone who knows me will also know that I love the Economist and listen to its Audio Edition on my way to work every week as my general news overview. The beginning of its special report on the economic downtown a few weeks ago is a perfect example of its combination of high (though not always perfect) quality reporting and biting wit:

Five years ago Michael Silverstein and Neil Fiske wrote a book, “Trading Up: The New American Luxury”. They argued that Americans, even those of modest means, were abandoning merely adequate products for luxurious ones. Jake the construction worker, for example, splurged $3,000 on Callaway golf clubs, though he could have bought a set nearly as good for a third as much. (“They make me feel rich,” he said.) A shipping clerk on $25,000 a year bought silk pyjamas from Victoria’s Secret. A couple making $125,000 ordered a $4,000 brand-name cooking range, even though their kitchen came with a free generic one.

If you read the book backwards, it describes what is going on today.

- Trading down: From decadence to discounts, The Economist, May 30th, 2009