While the global economy continues to struggle, the rich are not only getting richer, they are splashing it around a lot more.
Reuters reports that rich Americans are expected to spend $2.6 billion more on luxury goods, excluding cars and travel.
As reported here, luxury brands like Prada are planning to float this year, driven by the growing number of high-end consumers in Latin America and China.
All this is happening at a time when the International Monetary Fund is talking about the growing problem of global inequality and unemployment creating upheaval throughout Europe and the Middle East.
The latest surge in luxury spending tells us that the recovery in advanced economies is not creating jobs and is not being shared broadly. Less demand for goods and services from the broader population means that this recovery is not sustainable. Economists say the growth in luxury spending is a good sign. They're wrong. It's a warning.
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