Re: Handbag Prices Affected by the Economy
As the economy shifts, you see the rich getting richer and the poor getting poorer. Take for instance someone with moderate wealth. He/she can take advantage of the subpar economy and purchase houses that have been foreclosing, rent them out thus increasing their monthly income.
Take someone who is living paycheck to paycheck. THey can no longer afford the increasing costs of homeownership and thus, must succumb to foreclosure or a shortsale. They must now leave their home, which is an equity-bearing asset, and rent a place to live. Renting the place to live handsomely lines the pockets of the wealthy even more, and takes money out of their pockets that they will never see again - unlike a house payment that can be somewhat recouperated via sale of the home.
Historically, the US has been primarily middle class, with small percentage of population wealthly and a small percent povern stricken. Now, the middle class gap is closing in and soon there will be rich or poor.
In my opinion, prices of luxury goods will continue to rise becuase the income of wealthy people will continue to rise, thus they will be willing (and able!) to pay the increased price.
I think I have a good subject for my MBA capstone project...
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Wish List: New Monogramoflauge Bag, LV Monogram Canvas Montorgueil GM, LV Multicolor Monogram Wallet, Coach Tote
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