Tag Archives | Rich People

China Outlaws Advertisements Promoting Luxury Goods And Lifestyles

554252494_47a4e801ffIn an effort to contain class resentment stemming from a growing wealth gap, China has outlawed public ads that extol luxurious or ‘high end’ things. Are they onto something? Partial Objects takes note:

The clean up means commercials posted or aired in public can no longer include words like “supreme”, “royal”, “luxury” or “high class”, all of which frequently appear in Chinese promotions for real estate developments, vehicles and wines.

This move is designed to deal with the growing resentment about the wealth gap that exists between (some) urban and rural Chinese.

But note that they aren’t banning the wealth itself, or taxing it to oblivion; but managing the appearance of wealth, the description of wealth. It’s still okay to sell high end real estate, just don’t describe it as “elite” or “luxury.”

The Chinese government is fighting a linguistic battle, not an economic one. Anyone who sees a nice car may want one, but it is the description of that car and not the car itself that makes it an aspirational good.

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The Ultra-Rich Are Meaner Than Rest of Us

What a shocker. Matthew Lynn writes in Bloomberg:
Monopoly Man

There is something surprising about a private banker warning his colleagues about the rich. It would be like a director of Volkswagen AG casting doubt on motorists, or the boss of McDonald’s Corp. distancing himself from people who eat fast food. Rather like valets, the main aim of the private banker is to court the wealthy.

At a conference in Zurich last week, the head of Barclays Wealth Management’s private-banking unit, Gerard Aquilina, appeared to issue a red alert about the richest of clients.

“Beware of the complexities of dealing with ultra high net worths,” Aquilina told his audience. “Demanding and often unreasonable” requests from them may create “impossible demands on the organization.”

Such as? Help with getting children into the right school, securing credit to buy property, or obtaining last-minute concert tickets, for example. Even worse, the richest of the rich turn out to be pretty stingy as well.

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