Is it possible that the rich are putting too much pressure on the non-rich, driving the country to the edge of spending more money than it actually has? According to Robert Frank in his book, Luxury Fever, our attempts to keep up with the rich folks might be the reason we are plunged so deep into debt that we can barely breathe. Think about it this way- the rich way of life is alluring. Karen Country Club looks like a better place to hang out, and going for Blankets and Wine every month even when we cannot afford it is a better idea. Every rich techie has a tablet and possibly the latest iPhone. Why not borrow some money and get one as well? It is a trickle-down kind of spending where the populace wants to consume what the rich are consuming.
So what do the non-rich do to keep up? They work two jobs a day and twice as much, borrow from every end just so they can afford the luxuries. This rich-spending from both parties is a call to the Porsche peddlers like KFC to open up more stores, exposing everyone to the rich market consumerism. This creates more pressure from both sides to consume ‘rich goods’- pressure from the Porsche peddlers and the rich spenders. The rich are always known to spend more, and more, and then more. The richer they get, the more they spend, then the more pressure they put on the non-rich. What they create is a pace of unbearable binge spending.
Keeping up with this lifestyle is definitely not easy. It leaves most buried in bank loans and mortgages, saving less, all in pursuit of material consumption. There are a couple of other things that Robert Frank thinks this culture puts at stake. People will spend less time with family, trying to cash in that extra penny and afford the lifestyle.
The question is, are the rich Nairobians making us poorer or is Robert Frank peddling a fallacy?