Why do poor people spend so much money on brand-name items and flashy status symbols? The answer is power. Those Calvin Klein boxers are a desperate attempt at compensation. Here's Kevin Lewis of the Globe Ideas section:
If people low on the socioeconomic ladder sometimes buy things beyond their means, it may be because of a psychological mechanism that we all share. At Northwestern University, several experiments with students tested the idea that people who feel relatively powerless have a greater desire for high-status goods. The participants were primed to feel either powerful or powerless by having them recall corresponding personal experiences. The participants then indicated their willingness to pay for various products, some that were generic and others that conveyed status (e.g., an executive pen). Those who were reminded of their powerlessness were willing to pay a premium, but only for high-status goods - as a way to regain a sense of power. The authors conclude that "it is those low in socioeconomic status that might be most inclined to pay price premiums, which might lead to a downward spiral of constantly spending beyond one's means in order to compensate for low power."
Humanities & Social Science
Comments (3)
After attending a morning lecture at the local Medical School, I was overwhelmed by all the Rolex Watches on the student's wrists. Their distribution among otherwise impoverished students does add credence to your theory: Ratio 2 to 1 Males over Females with Rollies. I strongly suspect that you don't wear a status watch.
Posted by: OftenWrongTed | July 14, 2008 3:34 PM